What does ‘Made in Switzerland’ mean exactly?
The Swiss Federal Institute of Intellectual Property (IPI) announced a "clarification of practice" at the end of March. The brief statementExternal link was explosive. From now on, products can also be marketed with the Swiss cross even if a significant portion of production does not take place in Switzerland.
The government's standard calculation for the value of the "Swiss Made" label is as follows: Switzerland generates 1% of its gross domestic product (GDP) thanks to the good reputation of its production base.
"This value equates to around CHF7 billion [$9 billion] today," the IPI told Swissinfo, adding that the Swiss cross generates this value because customers are willing to pay more for products labelled "Made in Switzerland". This label stands for quality, precision and reliability, and the Swiss brand promise therefore has a monetary value.
The high value of "Made in Switzerland" is also reflected in the Made-in-Country Index, which was last calculated in 2017 through a global online survey.
According to the IPI, this economic added value can account for up to 20% of the retail price for primary agricultural products and typical Swiss products, and up to 50% for luxury goods. Studies by the University of St Gallen estimate the average increase in value attributable to the "Swiss Made" label at around 40%.
For the "Swiss Made" label, at least 60% of the manufacturing costs for industrial products must be incurred in Switzerland. There is a special rule for watches: at least 60% of the mechanism must be produced in Switzerland, and development must take place in Switzerland, as must the most important stage of production.
For food, 80% of the weight of the raw materials must come from Switzerland. There is an exception for chocolate, as nuts and cocoa are not available in sufficient quantities or at all in Switzerland. However, the recipe and production must be Swiss.
These rulesExternal link have been in force since 2017. The aim at the time was to better protect the "Switzerland" brand from free-riders. The law is as sharp as a Swiss Army knife, which has resulted in some high-profile victims. Toblerone chocolate had to remove the Matterhorn from its packaging after production was relocated to Slovakia, while herbal sweet manufacturer Ricola had to adjust its recipes to retain the Swiss cross. Intentional violation of the law carries a prison sentence of up to five years.
However, there are grey areas that fall outside the scope of the Swissness rules. For example, "Swiss cheese" is a general term used in the United States for cheese with holes and is neither an indication of origin nor a protected product. Similarly, "Bündner fleisch" is no guarantee of Swiss meat, but rather a descriptor of a recipe for air-dried beef.
These precise definitions can be interpreted differently by consumers, as shown by a recent survey in Germany. However it was clear to most that "Made in" refers to the location of production.
In 2025, the Nuremberg Institute for Market Decisions conducted a global surveyExternal link comparing the reputation of "Made in" labels. The institute also analysed, exclusively for Swissinfo, in which markets the "Swiss Made" label was viewed particularly positively.
Consumers in India held Swiss products in the highest regard, followed by Germany. In Japan, the Swiss brand had less appeal.
The new rules for "Swiss Made" state that if a product is based on Swiss research or development, the Swiss cross may be used, even if the products were manufactured abroad.
In such cases, the Swiss cross must be integrated into the text "Swiss Engineering" or "Swiss Research". The clarification clearly states: "The Swiss cross must be placed exactly between the two words, and the length of the square must not exceed the size of the font."
However, exactly what is understood by the terms "Swiss Engineering" and "Swiss Research" remains to be clarified, likely by the courts.
This amendment is intended to ease the burden on Swiss companies, as the continually strong Swiss franc and high US tariffs have forced many firms to relocate parts of their production abroad. The IPI, which made the amendment, argues that at the same time, key stages of value creation such as research, development and design often remain in Switzerland, and companies therefore have a legitimate interest in continuing to highlight their "Swissness".
One example is Victorinox, the manufacturer of the famous Swiss Army knife. Victorinox also has a line of suitcases and bags, which the company develops in Switzerland but manufactures abroad. Until now, Victorinox has complied with the Swissness rule by affixing a coat-of-arms-like emblem to the suitcases with a white cross, but on a black background. In future, these suitcases could feature a genuine Swiss cross.
The extension of the Swissness rule is, first and foremost, a victory for footwear manufacturer On, which has created a new global brand with its sports shoes. It has a market value of CHF10 billion and employs thousands of people, more than 1,000 of whom are based in Switzerland. However, the shoes are primarily manufactured in Vietnam.
Nevertheless, On used the Swiss cross on its shoes, which the IPI took global action against. Following the escalation of this dispute at the end of 2025, On threatened legal action. The IPI subsequently issued the clarification of practice. However, this is not a "Lex On", but a clarification that applies to everyone, according to an IPI spokesperson.
The new regulation therefore also benefits many other companies, such as underwear manufacturer Calida. The company's production was once based in Switzerland, but has since been outsourced, primarily to Hungary. Development still takes place in Switzerland. Companies with similar stories can now look forward to the return of the Swiss cross as a value-adding brand promise.
It is difficult to say whether there will be any losers. However, there is already considerable frustration where significant investment has been made in recent years to meet the "Swissness" requirements. Kitchen appliance manufacturer V-Zug, for example, had kept its production in Switzerland – an expensive manufacturing location – to justify the Swiss cross at the core of its brand. "We expect this decision to dilute the Swiss brand and harm Switzerland as a production location," the company's head of marketing told the Neue Zürcher ZeitungExternal link (NZZ), adding that for firms manufacturing in Switzerland, the expansion was a "disservice".
The CEO of gardening tool manufacturer Felco also wrote in an article that the promise of "Made in Switzerland" was based on quality, precision and reliability: "Reducing Swissness to design or research and development alone would weaken this foundation."
Coffee machine manufacturer Thermoplan has likewise remained loyal to Switzerland for marketing reasons. "We're disappointed by the decision," CEO Adrian Steiner told the NZZ. "The cross is a promise and is rightly tied to certain requirements", which he said were now being watered down.
Also among those opposed to the intended expansion is oral hygiene entrepreneur Thomas Minder. He rose to prominence in 2013 when he successfully, and practically single-handedly, launched a people's initiative to curb executive salaries, the so-called "Fat Cat" initiative. Now Minder is considering another popular initiative, called "To protect Swissness and the Swiss cross."
Motions are also being tabled in parliament and the new Swissness rule is coming under legal scrutiny. "If we allow this clarification, it will massively devalue 'Swiss made'," entrepreneur Roberto Martullo told the tabloid BlickExternal link. Martullo recently revived the classic Swiss shoe brand Künzli, which manufactures abroad, specifically in Portugal.
Künzli has a product like On, a business model like On, but a completely different stance on the use of the Swiss cross on shoes, demonstrating that the dispute over the use of the white cross on a red background extends far beyond the economy and statistics.
Key Insights
- This topic is currently trending
- Experts are closely monitoring developments
- It may impact future decisions
