LETTER FROM GENEVA
On the one hand, the grandiose professions of faith, available with one click on the brand’s website, in the chapter “ sustainability ». Like this one : “We innovate for people and the planet. In the future we dream of, all our products will be made without fossil fuels and designed to be circular – while ensuring fairness and celebrating diversity. » Or : “Our adventure began in the Swiss Alps, our daily playground. Our connection to nature helps us keep our priorities in sight. »
On the other hand, an economic reality on which the On brand had until now forgotten to communicate. Despite the little Swiss flag that sometimes appears on the back of her sneakers, she has them made in Vietnam and markets them with such a staggering margin that the Swiss consumer magazine Ktipp just dedicate an investigation at its prices “scandalous”.
Thus the Roger Advantage model, which brings in 17.86 Swiss francs (around 19 euros) for the Vietnamese manufacturer, and which can be found at 190 francs in the online store for Swiss customers. Even after deducting transport costs (1.70 francs per pair) and customs costs as well as VAT (8.1% in Switzerland), the margin remains staggering. For hiking shoes like the Loewe Cloudtilt model, production costs are announced at 20.80 francs, while the pair costs 445 francs, twenty times more. Other competing brands, such as the German Adidas and Puma, which also have their shoes manufactured in Vietnam, often in the same factories, work with margins four times lower.
Brand developed by a duathlon champion
“Sustainable management consists of equitably sharing the fruits of value creation”, notes Oliver Cassen of the NGO Public Eye, which publishes investigative reports on working conditions in the global fashion and clothing industry. She had already singled out Roger Federer when signing his contract with the Japanese firm Uniqlo, suspected of profiting from the forced labor of Uighurs in prison workshops in Xinjiang (China). In 2018, the ready-to-wear brand managed to steal the Swiss superstar from the American equipment manufacturer Nike for a $300 million agreement that runs until 2028.
The On brand was launched in 2010 by a Swiss duathlon champion who had developed, with an engineer from the Swiss Federal Institute of Technology in Zurich, a system to absorb shocks during the race. The founders of this Zurich company contacted Roger Federer after seeing him with one of their models on his feet, offering to take a stake in the company, which he did in 2019.
You have 55% of this article left to read. The rest is reserved for subscribers.