02/16/2024 10:04 (current 02/16/2024 10:46)
Tennis legend Roger Federer. ©AP
Allegations against tennis icon Federer: Insights into the pricing policy of footwear company “On”, in which the Swiss has a stake, are causing criticism.
Former tennis world number one Roger Federer, who is revered in Switzerland not only as a sporting idol but also as a national icon, is currently facing serious allegations. At the center of the criticism is the business model of the footwear brand On, in which Federer not only acts as a brand ambassador, but also owns shares. A survey carried out by the Swiss consumer magazine “K Tipp” sheds critical light on the company's prices, particularly with regard to the production costs and sales prices of its shoes.
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According to information based on confidential customs data, On shoes are produced in Vietnam, a low-wage country. An exemplary case is the Roger Advantage sneakers, whose purchase price is just 17.86 Swiss francs (around 19 euros), while the selling price in Switzerland increases to more than ten times that amount, namely 190 francs (around 200 euros).
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“On shoes” is a bestseller ©Portal
Pricing policy: Adidas and Puma also in focus
This pricing policy is not exclusive to On; Similar pricing structures have also been found at other well-known sports brands such as Adidas and Puma. On's Cloudsurfer, for example, is produced with a manufacturing cost of 19.76 francs (around 21 euros) and sold at a price of 220 francs (around 232 euros). A comparison shows that Adidas charges a retail price of 140 francs (148 euros) for the Ultraboost DNA 5.0, with purchase costs of 28.42 francs (30 euros), while Puma offers its Magnify Nitro SP for 111 .90 francs (118 euros). it is made in Vietnam for 30.56 francs (32 euros).
- Roger Advantage by On: The purchase price in Vietnam is 17.86 Swiss francs (around 19 euros), while the selling price in Switzerland is 190 francs (around 200 euros).
- Cloudsurfer by On: Production costs amount to 19.76 francs (around 21 euros), with a selling price of 220 francs (around 232 euros).
- Adidas Ultraboost DNA 5.0: This shoe is sold in Switzerland for 140 francs (148 euros), the purchase cost being 28.42 francs (30 euros).
- Enlarge Puma Nitro SP: The retail price is 111.90 francs (118 euros) and the production cost in Vietnam is 30.56 francs (32 euros).
Quality criticism
“K Tipp's” findings suggest that On charges the highest profit margin relative to production costs and therefore charges customers the highest price. Furthermore, the quality of the shoes was criticized; one retailer described On shoes as “classic disposable products.”
In Cloud Shoes. ©Portal
Financial greed?
Roger Federer, who is known for his exceptional achievements on the tennis court and has won 20 Grand Slam titles, is now also being criticized by respected media outlets such as “Neue Zürcher Zeitung” and “Le Monde”. The latter accuses the athlete of “unusual financial greed”. While On's sustainability report emphasizes promoting equality and protecting the planet, “NZZ” critically comments that these values have little meaning if workers in Vietnam do not feel them.
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Roger Federer: his financial empire
The “Handelszeitung” estimated Federer's assets at 750 million Swiss francs in 2022, other sources say around 400 million euros. A significant portion of his revenue comes from extensive sponsorship deals with twelve well-known brands, including Jura, Sunrise, Credit Suisse, Rolex, Barilla, Lindt, Mercedes, Moët & Chandon, Wilson, Netjets, Rimowa and Uniqlo. The Uniqlo contract is particularly notable for its lucrative nature and is expected to earn Federer almost 300 million francs by 2028. (VOL.AT)
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