Roger Federer's Swiss shoe brand 'On' under scanner: Here's why
Tennis legend Roger Federer's Swiss athletic shoe brand 'On' has been embroiled in a controversy for selling its sneakers at high prices compared to their production costs. According to a customs data revealed by the consumer research company K-Tip, On's 'Cloudway' sneakers have a selling price of $230, with $24 being the manufacturing price. Notably, Federer got associated with the brand in 2019.
Why does this story matter?
'On' had a turnover of 1.2 billion Swiss francs ($1.1 billion) in 2022. The brand produces high-performance sports shoes with a slogan of 'running on clouds'. However, 'On' was under the scanner after the shoe prices skyrocketed, which caused a stir in Switzerland. The brand, which has Federer as its shareholder, was listed on the New York Stock Exchange in 2021.
A 10x markup!
As mentioned, On's 'Cloudway' sneakers are being sold at $230 compared to its cost price of $24. Meanwhile, the 'Roger Advantage' model, which costs just $21, has a selling price of $219 at present. This is over 10 times the production cost. On's most expensive shoe, the 'Cloudtilt Loewe' has a staggering price of $513. It production cost goes down to $24.
On denies the latest figures
The sky-high prices and profit margins of On's sneakers have caused a stir in Switzerland, where Federer resides. "We do not disclose or comment on commercially sensitive or confidential information," On told AFP in an email. It added, "However, we would like to point out that the figures published in the media last week contained inaccurate information."
More on shoe brand 'On'
On, an athletic shoe and performance sportswear company, was first incorporated in 2010. Former Swiss Ironman champion Olivier Bernhard formed the brand in partnership with David Allemann and Caspar Coppetti. In November 2019, legend Federer became a shareholder in On. A limited edition shoe named 'The Roger' was released by the brand thereafter. Notably, On is sponsor of top-ranked women's tennis player, Iga Swiatek.
Swiatek's partnership with On
Polish tennis star Swiatek announced her partnership with On in March 2023. Therefore, she became the first female athlete to sign with the Swiss footwear brand. Notably, the Polish ace had Nike as her sponsor at the start of her career.
