LETTER FROM GENEVA

On one side are the grandiose mission statements that are available on the brand's website in the "sustainability" section, like this one: "We envision a future where everything we make is fossil-free and engineered for circularity. All while fostering equity and celebrating diversity – wherever we work, play and move." Or what about: "Our journey began in the Swiss Alps and it's still our playground today. Our connection with nature helps us keep our priorities in check – and drives us to set ambitious goals with real impact."

On the other is the economic reality that the On brand has so far omitted to advertise. Despite the little Swiss flag that is sometimes apparent on the back of its sneakers, On manufactures them in Vietnam and sells them at such staggering margins that the Swiss consumer magazine Ktipp recently investigated its "outrageous" prices.

One such example is the Roger Advantage model, which nets its Vietnamese manufacturer 17.86 Swiss francs (around €19) and is available at €190 in the online store for Swiss customers. Even after deducting shipping costs (1.70 francs per pair), customs duties, and VAT (8.1% in Switzerland), the margin remains staggering. For hiking boots like the Cloudtilt Loewes, production costs are indicated at 20.80 francs, while On charges 445 francs (€490) per pair, 20 times more. The margins of other competing brands like Germany's Adidas and Puma, whose shoes are also made in Vietnam, often in the same factories, are four times lower.

"Sustainable management is about sharing the fruits of the creation of value fairly," noted Oliver Cassen of the NGO Public Eye, which publishes investigative reports on working conditions in the global fashion and apparel industry. It had already singled out Federer when he signed his contract with the Japanese firm Uniqlo, suspected of profiting from the forced labor of Uyghurs in prison workshops in Xinjiang (China). In 2018, the ready-to-wear brand managed to snatch the Swiss superstar from the American equipment manufacturer Nike in a $300 million deal that runs until 2028.

The On brand was launched in 2010 by a Swiss duathlon world champion Olivier Bernhard, who, together with an engineer from the Swiss Federal Institute of Technology in Zurich, developed a shock-absorbing system for running shoes. The founders of the Zurich-based company contacted Federer after spotting him wearing one of their models and proposed he take a stake in the company, which he did in 2019.

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