Apology issued by Swatch for controversial advertisement featuring a watch design with slanted eye resemblance, causing offense in the Asian market.

In a recent turn of events, Swiss watchmaker Swatch is grappling with a controversy surrounding an offensive advertisement that has led to calls for a boycott on social media. The controversial ad, published on Instagram and Weibo, features an Asian model making an allegedly racist gesture, sparking outrage among Chinese audiences and beyond.

The offensive gesture, known as the "slanted eyes" gesture, has historically been used to mock people of Asian descent. Swatch, in response, apologised for any distress or misunderstanding caused by the advertisement and promptly removed it on Saturday.

However, the damage seems to have already been done. The controversy has led to a significant decline in sales for the company, with Swatch experiencing a 7.1 percent decline in sales for the first half of 2025. The decline is primarily attributed to China, where Swatch is one of the biggest watchmakers.

The controversy could further imperil Swatch's sales in the region, as it continues to receive increased attention in media and culture discussions. Swatch's apology on Instagram and Weibo was met with criticism from social media users in China, with one user stating, "Swatch brought discrimination against Asians into their product posters."

Despite the controversy, Swatch Group, which also owns watch brands such as Omega, Longines, Breguet, and Tissot, did not immediately respond to Fox News Digital's request for comment regarding the boycott and sales decline.

Meanwhile, the Swatch Group is led by CEO Nick Hayek, who is heavily involved in the company's management and public presence, including marketing-related matters. The specific individuals responsible for the marketing department of Swatch are not directly named in the available search results.

This incident comes at a time when the watch industry is facing stiff competition. In 2019, Apple Watches outsold the entire Swiss watch industry, indicating a shift in consumer preferences towards smartwatches.

Elsewhere, media conglomerate ViacomCBS is reportedly planning to launch another streaming service that includes Paramount movies, Nickelodeon, and MTV.

In a separate development, Jerome Powell, the Federal Reserve Chair, is under pressure ahead of his critical speech. Topics of bankruptcies, rising debt, and the housing crisis are being discussed in relation to his speech.

The Swatch ad controversy serves as a reminder of the importance of cultural sensitivity in advertising, and the potential consequences of failing to uphold such standards. As the situation unfolds, Swatch will need to navigate this challenge carefully to regain the trust of its customers and maintain its position in the competitive watch market.