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Story summary
- Swatch's ad featuring an Asian model pulling his eyes back caused outrage in China, prompting boycott calls on social media.
- Despite a public apology and ad removal, many consumers deemed the response insincere, accusing Swatch of prioritizing profits.
- The incident underscores the challenges Western brands face in China regarding cultural sensitivity, with past boycotts affecting brands like H&M.
- Swatch relies heavily on China for 27% of its revenue, which has declined amid economic challenges.
- The company also faces financial pressure from a 39% tariff on U.S. exports and a projected 14.6% revenue drop in 2024.
