Swiss-made products are cheaper abroad than in Switzerland, study finds

Though it’s common knowledge that it is well worth shopping in Germany or France if you live in Switzerland, a new report has revealed that local brands are also more affordable across the border. Even products that are produced in Switzerland were found to be cheaper overseas, with some experts claiming the prices amount to exploitation.

Swiss-made products cheaper across the border, study finds

In the report, Watson revealed that a number of Swiss-made products are more expensive in Switzerland than they are just a quick hop across the border. These price differences affect everything from coffee and chocolate to biscuits.

For example, the newspaper found that 200 grams of Lindor chocolate balls from Lindt - which are mostly made in Switzerland - were just 5,6 francs in the French store Carrefour, compared to a whopping 11,95 francs in Swiss supermarkets. Villars chocolate, made in Fribourg, is 50 percent more expensive in the alpine nation than it is in France and Germany.

In all, Watson found that Lindt & Sprüngli, Villars, Mövenpick, Kambly and Ricola were all charging a Swiss premium on goods made in Switzerland. 

Swiss brands blame high salaries and costs

In response to the accusations, most companies justified the price differences by arguing that operating costs in Switzerland are much higher than in Germany and France. Speaking to Watson, a spokesperson for Lindt & Sprüngli explained that Swiss salaries and logistical costs are the main reasons why the goods are more expensive. 

They went on to argue that they couldn’t do much to influence prices, given that “pricing is left to the discretion of the retailers." Mövenpick agreed, adding a statement that the strength of the Swiss franc, especially when compared to the euro, has made price differences seem more extreme than they actually are.

Are high wages really the reason why Switzerland is so expensive?

In response, the Consumer Federation for French-speaking Switzerland (FRC) told Watson that the “argument of high wages in Switzerland as the main justification doesn't hold water." FRC head of economics Jean Busché said that "higher wages and costs" are a smokescreen used to justify unfair prices.

Busché cited a study from the Swiss government and official price monitor, which noted that many products are cheaper to manufacture and distribute in Switzerland than abroad. A similar government study from 2003 found that, generally, higher Swiss wages only raise running costs by 11 percent compared to production lines in neighbouring countries.

"This is not simply a logical adaptation to local costs, but rather a strategy to maximise profits at the expense of Swiss consumers," Busché argued, adding that the high margins charged by supermarkets and other retailers are one of the main reasons prices are higher. "This reflects a structural problem linked to a lack of effective competition… Consumers are therefore victims of a system that forces them to bear excessive margins without any real benefit in return," he concluded.

Thumb image credit: 8th.creator / Shutterstock.com