“Made in Switzerland” brand retains its appeal

Linking goods with Swiss qualities is the key Keystone

Consumers will continue to buy high-quality, high-cost Swiss products despite the recession and the recent damage to the country's reputation, experts believe.

Switzerland’s exports are down, in line with other countries, but manufacturers will prosper in the long run if they market traditional qualities of reliability and value, a Swiss Brands conference heard.

Swiss companies should not change their strategy of producing expensive, well-made goods because some consumers have become more price conscious, according to Stephan Feige of the firm St Gallen Management Consulting.

“In a recession, the plan should remain the same because people are still looking for the best quality. If the customer is very price conscious, then it might not be helpful for a year or two, and we have to live with this, and over the long run a reputation for quality will be beneficial,” he told swissinfo.ch.

Dominique von Matt, head of the consultancy and advertising specialists Jung von Matt/Limmat, also believes that demand for Swiss branded goods will remain stable despite current economic woes.

More assertive marketing

“Swiss products stand for top quality at higher prices, but not for luxury. Consumers want to invest in goods and that is good news for the Swiss brand because it is something people can trust in,” he told swissinfo.ch.

“The Swiss reputation for reliability, quality and precision have even more value now than before the recession.”

Von Matt also urged companies at the Swiss Brands 09 conference in Zurich on Tuesday to make more use of the unique Swiss image.

“The Swiss are reserved by nature and that inhibits some companies from playing the Swiss Brand card as much as they should,” he said. “Firms that have a strong affiliation with Swissness should make a strong connection between Swissness and their brand.”

Image problems

On top of the global economic slowdown, Switzerland’s image has been battered abroad with accusations of xenophobia during the general election two years ago and of aiding tax evaders in recent months.

This comes on top of negative press in the past decade over dormant holocaust era bank accounts and money laundering.

Von Matt believes the unusually high level of negative comment may have taken its toll on Switzerland’s normally watertight image of openness and fairness, but not to the extent that sales of Swiss goods would be affected.

“It is important that Switzerland is viewed sympathetically, not just for tourism but for goods as well,” he said. “The image damage is a problem, but the effects are relative. They affect general sympathy towards the country but not Switzerland’s image of quality.”

Stephan Feige agreed that there should be little adverse commercial impact provided comments relating to morality do not last too long.

“The Swiss brand is generally not influenced by individual problems such as the Swissair grounding or the problems of UBS. But if the discussion takes on a moral dimension, such as tax havens, then it might become a bit more of a problem,” he said.

“If the discussion only lasts a couple of months it would be not be too harmful, but if it drags on for a number of years it could become a problem.”

Matthew Allen in Zurich, swissinfo.ch

Made in Switzerland

New laws protecting the “Swiss Made” brand from counterfeits and foreign production are still in discussion and are due to be debated in parliament this autumn.

Rising globalisation has resulted in some firms relocating production abroad or buying cheaper foreign raw materials that are then packed as Swiss goods.

Former Justice Minister Christoph Blocher raised the issue in 2006. He argued that the reputation of Swiss Made products was being diluted by such practices.

Proposals on the table include insisting that at least 60% of a Swiss branded product is made of Swiss materials, manufactured or developed in Switzerland. Some agricultural products may have to include 80% Swiss ingredients.

Lawmakers also want to tighten use of the Swiss coat of arms, currently used by such companies as Victorinox, which makes Swiss Army knives, or automobile association Swiss Touring Club.

Both of these companies and a host of others are seeking exemption from such laws on the grounds that it would harm their business.