Kybun-Joya co-CEO Claudio Minder announced that the Swiss small and medium-sized enterprise is partially shifting its shoe manufacturing away from Switzerland to Italy. According to Minder, the decision comes in direct response to a surprise regulatory shift by the Institut für Geistiges Eigentum in the spring, which now allows the official Swiss cross emblem to be printed on foreign-made products provided the design originates domestically. Previously, companies were required to maintain at least 60 percent of their product’s value creation within Switzerland to use the national symbol.
The Origin of the Lex On Regulatory Shift
The policy change stems from a protracted dispute involving the Swiss athletic footwear brand On, whose running shoes are manufactured predominantly in Vietnam. Despite producing abroad, On utilized the Swiss cross on its footwear, sparking extensive industry debate before ultimately securing the right to use the national emblem alongside a disclosure noting that the shoes were developed in Switzerland. This regulatory accommodation has become widely known as the Lex On decision.
Claudio Minder expressed sharp criticism of the ruling during a media conference held by the Schweizerischer Gewerbeverband. According to Minder, nobody using normal common sense can explain the decision, which he claims followed heavy lobbying by On directed at the federal government. For Kybun-Joya, the policy forces a difficult strategic choice regarding how the company labels its footwear lines.
Production Cost Pressures and Workplace Impacts in Sennwald
Manufacturing shoes in Italy proves to be 35 percent cheaper than operating within Switzerland, where Kybun-Joya pays an hourly wage of at least 23.50 Franken. While Kybun’s health-oriented footwear sold in Arab markets relies heavily on consumer perception of Swiss manufacturing quality, Minder notes that Italian-made alternatives face sales hurdles in those specific regions. The shift impacts roughly 40 workers at the company’s production site in Sennwald, though staff will retain their jobs while transitioning to new tasks tied to an automated production machine and newly established assembly lines.
Did You Know? Before the regulatory change implemented in March, companies had to ensure that at least 60 percent of a product’s value creation took place physically within Switzerland to qualify for the right to use the Swiss cross emblem.
Political Pushback and Future Legislative Outlook
In response to the federal ruling, Kybun-Joya and the Schweizerischer Gewerbeverband are pursuing a political remedy. Fabio Regazzi, who serves as the president of the Schweizerischer Gewerbeverband and as a Mitte-Ständerat, has submitted a motion aimed at reversing the Swiss cross guidelines. Minder acknowledges that the legislative process could require three to four years to achieve any concrete changes, leaving the company to navigate immediate economic realities in the interim.
Frequently Asked Questions
What triggered Kybun-Joya to move production to Italy?
The decision was prompted by the Swiss federal intellectual property office policy change known as Lex On, which permits companies to use the Swiss cross on foreign-manufactured goods if the design work is done in Switzerland.
How much lower are production costs in Italy compared to Switzerland?
Production for Kybun shoes in Italy is 35 percent cheaper than in Switzerland, where Kybun-Joya pays a minimum hourly wage of 23.50 Franken.
What is being done politically to challenge the new rules?
Fabio Regazzi, president of the Schweizerischer Gewerbeverband and Mitte-Ständerat, has submitted a motion to reverse the decision, though stakeholders note that legislative changes could take three to four years.
How will consumer trust in Swiss-made health footwear shift if production increasingly moves across the border to neighboring countries?
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