Group 1 - The article discusses the contrasting brand endorsement philosophies of two iconic figures, Aaron Kwok and Jackie Chan, highlighting how their unique approaches reflect broader commercial truths [7]. - Aaron Kwok's endorsements span various industries, from fashion to technology, showcasing a blend of artistic and commercial success, while maintaining a timeless appeal [3][8]. - Jackie Chan, despite being labeled a "brand killer," has created significant commercial success through his endorsements, illustrating the unpredictable nature of market dynamics [5][8]. Group 2 - The analysis emphasizes that the longevity of a brand is influenced by internal factors such as supply chain resilience and market sensitivity, rather than solely by celebrity endorsements [8]. - Both celebrities represent different aesthetic values in brand endorsement, yet they converge on the idea that quality is essential for a brand's enduring success [8].

Core Viewpoint - The traditional allure of European luxury watches, once seen as a symbol of wealth and status in China, is diminishing as consumer preferences shift towards domestic brands and smartwatches, leading to a significant decline in the resale value of high-end Swiss watches [4][5][10]. Market Trends - The resale index for Rolex watches has dropped nearly one-third from its peak in March 2022 to March 2025, marking a four-year low [4][10]. - The sales of Swiss watches to mainland China fell by 26% last year, with exports to Hong Kong also declining by 19% [11]. Consumer Behavior - The middle-class consumer group, which has been a significant driver of luxury watch sales, is experiencing a decline in spending enthusiasm, with 45% reporting reduced luxury goods consumption in 2023-2024 [14][17]. - A survey indicated that 80% of consumers who are reducing luxury purchases believe that luxury goods lack cost-effectiveness [17]. Competitive Landscape - Domestic watch brands like Seagull and Fiyta are gaining traction, particularly with models associated with national leaders, while smartwatches from brands like Huawei and Xiaomi are becoming popular for their affordability and functionality [4][20]. - In 2024, Huawei led the smartwatch market in China with a shipment of 21.2 million units, reflecting a 34.2% year-on-year growth [19]. Brand Perception - The perception of European luxury watches as "hard currency" is fading, with consumers now prioritizing value for money over status symbols [5][11]. - The narrative surrounding luxury watches is changing, with younger consumers seeking personalized expressions rather than adhering to traditional brand stories [18][24]. Technological Advancements - Domestic watch manufacturers are improving their technical capabilities, with products like the Fiyta "Zhai Xing" automatic mechanical movement achieving recognition for quality [22][24]. - The gap in technology between domestic and Swiss watches is narrowing, as evidenced by advancements in domestic manufacturing processes [21][22]. Cultural Shifts - The cultural significance of luxury watches is evolving, with consumers increasingly valuing heritage and local craftsmanship in domestic brands [20][24]. - The rise of smartwatches and domestic brands reflects a broader shift in consumer values, moving away from ostentation towards practicality and personal relevance [20][24].

Group 1: Swatch Controversy - Swatch faced backlash for an advertisement featuring a model making a "slant-eyed" gesture, perceived as a racist symbol against East Asians [2][4] - The company quickly removed the image from its Chinese website but did not issue an immediate official statement [4] - Swatch issued an apology the following day, acknowledging the issue and stating that all related materials were deleted globally [4][5] - The incident highlights potential oversight in content review and a lack of respect for the Chinese market, which is crucial for Swatch's sales [5] Group 2: Impact on Sales - In 2023, Swatch's sales in the Chinese market grew by 10.9% to 2.63 billion Swiss francs, accounting for 33.3% of the group's total sales [5] - Despite a projected 30% decline in 2024 sales, the Chinese market is still expected to represent 27% of total sales [5] Group 3: YingShi Innovation Controversy - YingShi Innovation's founder sparked controversy by throwing cash at employees during a celebration, leading to mixed public reactions [6][10] - The company issued a statement clarifying that the cash was from the founder's personal salary and emphasized the importance of maintaining a positive public image [10][11] - The incident reflects a clash between corporate incentive culture and public perception, highlighting the need for companies to align their incentive mechanisms with broader societal values [11]

Core Viewpoint - Swatch faced backlash due to a controversial advertisement perceived as racially insensitive towards East Asians, prompting a public apology and removal of the related materials [1][3]. Company Summary - Swatch Group is one of the largest watch manufacturing and distribution groups globally, with brands including Longines, Tissot, Omega, and Breguet [4]. - The company reported a sales decline of 11.2% year-on-year for the first half of 2025, with net profit plummeting 88% to 17 million Swiss francs, resulting in a net profit margin of 0.6% compared to 4.3% in the previous year [6]. - The Chinese market is the largest regional market for Swatch Group, generating 2.63 billion Swiss francs in net sales in 2023, accounting for 33.3% of total sales [6][8]. Industry Summary - The Swiss watch industry faced challenges from a strong Swiss franc and declining global demand, exacerbated by the recent increase in tariffs imposed by the Trump administration on Swiss imports [10][12]. - The U.S. is the largest export market for Swiss goods, with 19% of Swiss exports going to the U.S. The watch export total for 2024 is projected at 26 billion Swiss francs, with the U.S. accounting for 16.8% of this figure [11]. - Analysts warn that maintaining a 39% tariff could be devastating for many Swiss brands, including Swatch, which derives 18% of its sales from the U.S. market [13].

Core Viewpoint - Swatch Group faced backlash due to a controversial advertisement perceived as racially insensitive, leading to a public apology and removal of the related content [1][3]. Company Overview - Swatch Group is one of the largest watch manufacturing and distribution groups globally, with brands including Longines, Tissot, Omega, and Breguet in addition to its basic Swatch line [4]. Financial Performance - For the first half of 2025, Swatch Group reported sales of CHF 3.059 billion, a decline of 11.2% year-over-year, and a net profit drop of 88% to CHF 17 million, resulting in a net profit margin of 0.6% compared to 4.3% in the previous year [6][7]. - The Chinese market is the largest regional market for Swatch Group, generating CHF 2.63 billion in net sales in 2023, accounting for 33.3% of total sales. However, sales in this market fell by 30% in 2024 [6][8]. Market Dynamics - The Swiss watch industry is under pressure from a strong Swiss franc and declining global demand, exacerbated by a recent increase in tariffs on Swiss imports to the U.S. to 39%, which could significantly impact exports [10]. - The U.S. is the largest export market for Swiss watches, accounting for 16.8% of total exports, approximately CHF 4.4 billion [10]. - Swatch Group derives 18% of its sales from the U.S., and the company has already raised prices by 5% in response to the tariff announcement [10].

Group 1 - Swatch brand's recent advertisement featuring a "squinty eyes" model has sparked controversy and discussions on social media platforms like Douyin and Weibo [1][3] - The advertisement has drawn attention to the historical context of "squinty eyes" as a derogatory term used against Chinese people, particularly in Western media [3] - Swatch's parent company, Swatch Group, reported a significant decline in sales and net profit for the first half of 2025, attributing the downturn to challenges in the Chinese market [3][4] Group 2 - The Chinese market has historically been a crucial contributor to Swatch Group's performance, with a net sales figure of 2.63 billion Swiss francs in 2023, accounting for 33.3% of the group's total sales [4] - Despite a projected 30% decline in sales for 2024, the Chinese market still represents 27% of the group's revenue [4] - Swatch Group's CEO highlighted potential opportunities arising from competitors like Seiko reducing their market presence in China, suggesting a possible recovery in the second half of the year [5]

Core Viewpoint - Swatch, a Swiss watch brand, faced backlash due to a controversial advertisement featuring a model with "slant-eyed" expression, perceived as racially insensitive towards East Asians, leading to strong protests from Chinese consumers [3][5]. Group 1: Incident Overview - The controversial advertisement included a model making an exaggerated "slant-eyed" expression, which many interpreted as a form of racial discrimination against East Asians [3]. - Swatch's official customer service acknowledged the issue and stated it would be escalated to relevant departments for further consideration [5]. - The "slant-eyed" gesture has historical roots in 19th-century Western racism and has been widely recognized as a discriminatory symbol against East Asians [5]. Group 2: Company Background and Financial Performance - Swatch Group is one of the largest watch manufacturing and distribution groups globally, owning brands such as Longines, Tissot, Omega, and Breguet, in addition to its basic Swatch line [6]. - In the first half of the year, Swatch reported a net sales figure of 3.06 billion Swiss francs, reflecting a year-on-year decline of 7.1% [6].

Core Viewpoint - The luxury watch market, particularly brands like Swatch, is experiencing significant challenges due to changing consumer preferences in China, shifting from status symbols to value investments [4][14][16]. Financial Performance - Swatch reported a sales revenue of 3.06 billion CHF in the first half of 2025, a decline of 11.2% compared to the previous year [4][5]. - Operating profit fell from 204 million CHF to 68 million CHF, with an operating margin of 2.2%, down from 5.9% [4][5]. - Net profit plummeted 88% to 17 million CHF, with a net margin of 0.6%, compared to 4.3% in the previous year [4][5]. Market Dynamics - The decline in sales is primarily attributed to the Chinese market, which saw a 30% drop in sales in 2024, despite accounting for 27% of total sales [6][8]. - The overall Swiss watch export value decreased by 0.1% in the first half of the year, with Asia experiencing a notable decline of 7.2%, largely driven by drops in mainland China and Hong Kong [8][9]. Consumer Behavior Shift - Chinese consumers are increasingly prioritizing value over status, leading to a decline in demand for luxury watches [14][16]. - The high-end watch market is facing pressure as the perception of luxury watches as "mobile assets" diminishes, with a focus shifting towards personal experience and emotional connection [16] . Competitive Landscape - The rise of smartwatches poses a significant threat to traditional watch brands like Swatch, with global shipments of wearable devices increasing by 10.5% in the first quarter of 2025 [19][20]. - Major players in the smartwatch market, such as Huawei and Xiaomi, are gaining market share, further challenging traditional luxury watch brands [21]. Strategic Responses - Swatch is attempting to leverage its luxury brand associations through collaborations with high-end brands like Omega and Blancpain to attract younger consumers [22]. - The company is also exploring technological enhancements, including AI-driven personalized watch designs, to remain competitive in the evolving market [22].