Swiss Consumer Magazine Reveals Discrepancy in On’s Running Shoe Profit Margins

Swiss Consumer Magazine Reveals Discrepancy

VoM News Desk | January 24, 2024 | 02:21 PM IST | World | Follow on Google News

Swiss Consumer Magazine Reveals Discrepancy in On’s Running Shoe Profit Margins

Swiss Consumer Magazine Reveals Discrepancy in On’s Running Shoe Profit Margins

Swiss consumer magazine K-Tipp reported on a study that examined customs data for 30 On running shoe products, revealing a significant gap between production costs in Vietnam and sales prices in Switzerland. For the “The Roger Advantage” model co-created with tennis star Roger Federer, On pays 17.86 Swiss francs to Vietnamese manufacturers but sells the shoes online for 190 francs in Switzerland. K-Tipp’s investigation highlighted On’s profit margin as notably higher than competitors like Adidas and Puma. On, listed on the New York Stock Exchange in 2021, responded, stating that the figures published contained inaccurate information.

On’s Profit Margin Scrutinized Amidst Swiss Reactions

The revelation sparked reactions in Switzerland, where Roger Federer enjoys significant popularity. On, a company with a 2022 turnover of 1.2 billion Swiss francs, produces high-performance sports shoes with its “run on clouds” soles. While On did not comment on the specific figures, it emphasized the inaccurate information in the media reports. Critics, including the NGO Public Eye, emphasized the importance of equitable sharing of value creation in sustainable management, raising concerns about the balance between a brand’s profit margin and the margins of shoe factories.

On’s Background and Sustainability Focus

On, founded in 2010 by Swiss ironman champion Olivier Bernhard, is known for its “run on clouds” sole technology. The company has gained popularity for its innovative approach to running shoes. As the issue gains attention, the scrutiny of On’s profit margins raises questions about the company’s commitment to sustainability and fair value distribution.

VoM News Desk

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