Swiss performance footwear company On has emerged as the poster child for a newly clarified approach to origin labeling in Switzerland. In the wake of a recent clarification issued by the Swiss Federal Institute of Intellectual Property (“IPI”), the Zurich-based performance footwear company may now use the Swiss cross on sneakers sold in Switzerland – even though those shoes are manufactured in Asia, marking a notable moment in the evolution of geographic indication law and branding in the global consumer goods market.
In a statement on March 23, the IPI cited mounting economic pressure on Swiss brands as a key factor in its recent clarification, one that will enable companies to continue using Swiss-origin claims and indications even when manufacturing has shifted abroad.
> The nuance: Swiss-origin claims must still reflect where key value is created. While manufacturing may shift abroad, companies can reference “Swissness” if core activities – including research, development, and design – remain in Switzerland, giving them a legitimate basis to invoke the country’s quality credentials. The IPI also made clear that the use of the Swiss cross comes with guardrails, requiring qualifiers like “Swiss engineering” to prevent any implication of full Swiss manufacture.
For On, which designs and develops its footwear in Zurich but produces the shoes in Asia, this clarification provides firmer legal footing for a branding approach that has faced scrutiny in both regulatory and consumer contexts.
“Swissness” in a Global Supply Chain
At the center of the evolving approach to Swiss-centric branding is an increasingly complex question: what does a modern supply chain look like, and when does design and development in one country justify the use of national labels and symbols on goods produced elsewhere? That question has taken on growing significance in the application of Switzerland’s “Swissness” framework, introduced in 2017 to safeguard the commercial and reputational value of Swiss-origin claims.
The framework established strict requirements for the use of designations like “Swiss made” and symbols like the Swiss cross, generally tying them to domestic manufacturing thresholds. However, the IPI’s recently-issued guidance reflects a more flexible approach, allowing Swiss origin labels to appear on products manufactured abroad, provided that the use is not misleading and clearly reflects that the relevant value – such as design, engineering, or development – originates in Switzerland.
This shift reflects a broader reality that geographic origin is no longer a straightforward concept. In a globalized supply chain, value is created across multiple jurisdictions, making it harder to anchor a product to a single place. For regulators, the question is not just where a product is made, but which aspects of it can legitimately be attributed to a particular country.
The stakes for Swiss-made goods are high, as Swiss-origin branding carries substantial economic weight, particularly in industries where consumers associate Switzerland with precision, craftsmanship, and technological excellence. With this in mind, the “Swiss made” designation can increase the value of certain goods – especially in the luxury watch sector – by as much as 50 percent. While performance sneakers occupy a different market segment, the underlying principle remains the same: geographic indicators function as powerful signals of quality and authenticity, enabling brands to reinforce positioning and support premium pricing.
THE BOTTOM LINE: The IPI’s new stance underscores how national identity functions as a strategic brand asset, one that must be carefully utilized in order to create value while balancing legal and regulatory risk.
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