Swatch Ad Controversy: Outcry Over Racial Imagery

## Swatch Apologizes for Offensive Advertisement

Swiss watchmaker Swatch has issued an apology following criticism over a recent advertisement. The controversial images featured an Asian model making gestures that many perceived as mocking Asian physical features.

### Reaction to the Advertisement

The ads, promoting the Swatch Essentials collection, sparked significant outrage on social media. Comments highlighted that the visuals seemed to echo derogatory stereotypes aimed at Asian individuals. As a result, Swatch has withdrawn these advertisements globally.

### Official Statement from Swatch

In an Instagram post, the company acknowledged the backlash. “We have taken note of the recent concerns regarding the representation of a model in the images of the Swatch Essentials collection,” Swatch stated. “We take this matter very seriously and have immediately removed all relevant materials globally. We sincerely apologize for any distress or misunderstanding this may have caused.”

### Impact on Company Performance

Following the controversy, Swatch’s share price dropped by 2.7% at the beginning of trading on Monday, though it later rebounded slightly. Reports indicate that the company’s shares have decreased by more than 50% since the start of 2023. Additionally, Swatch is facing a significant tariff of 39% on its exports to the United States.

### Financial Overview

Swatch Group, which encompasses brands like Tissot, Longines, and Omega, reported a notable decline in profits for the first half of the year. The financial results showed earnings of only 17 million Swiss francs from January to June, a sharp decrease compared to 147 million francs during the same period a year prior.

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