Swiss society is a very consumer oriented society. Just have a look at Bahnhofstrasse Zürich on a Saturday morning! They love to spend money-it's their drug of choice.
I would say a large part of the consumers on Bahnhofstrasse in Zurich on a Saturday morning are not Swiss but rich (or would-like-to-be-rich) foreigner tourists, and the Bahnhofstrasse is not the entire Switzerland.
I bought the milk powder for my son in Germany which cost 7.5 Euro compared with 25 CHF in COOP. Why the same Swiss brand has fixed the different prices?
Different taxes, products exported are relieved of local taxes as they are for export only. It's the same in the US and France, probably everywhere else. Also the cost to do business is higher(higher rent, employee costs, etc). To be competitive in foreign markets they do have to sell for less otherwise they wouldn't even bother to export it if it just sat on the shelves. It's not just with Swiss products.
I don't know the pricing now, but years ago, when I first came to Portugal, you could find Budweiser beer in cans(not the licensed and brewed here stuff) that were exported from the US, and sold in the supermarkets. In the US a can of the same had cost about 1 US dollar, and the same can, made also in the USA, was what worked out to be .30 US cents shipped abroad. Most of the American products, as there is a lot in Portugal, were 60 to 80% cheaper then in the US. Portugese in general would never pay 1 dollar a can when all the other beers at the time Super Bock, Sagres, Carlsberg, Heineken were all charging .30 or less. True, they weren't making as much as they would in the US, but clearly they made some profit.
Similac, the baby formula, is another example. When I was living in Michigan, about 30 minutes from Canada, a small can that would give enough nourishment to one of my twin boys for about a day and a half, cost in the neighborhood of 23 to 25 US Dollars, and they had the stuff locked up like it was alcohol because apparently so many people try to steal it because it is so expensive.
But, if you cross the border and went into Canada, you could buy the exact same stuff(the label read it was fabricated in up state New York then imported into Canada, so same stuff, Made in the USA), and not the tiny cans, but the big metric ones, that would feed two children for 2 and a half days, exchange rate considered for about 10 US dollars, and no one was trying to steal it in Canada.
There are a lot of things to consider why some products at home are more expensive then when purchased abroad. Companies are trying to make certain percentages. While I know every company likes to get the most they can for their products, the fact is, is to be competitive offering the lowest price is most of the time the best way to do it, and pricing yourself out of a market, well doesn't normally work, unless you are a luxury item.
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Bought a garment at the Ulla Popken shop in Luzern.
It is a German firm I understand.
Swiss price CHF 59,95
UK price £ 26.00
so about £20 difference. Is Switzerland entirely responsible for this? How does it work?
For one, economies of scale play an important role. The other main issue is, that brands don't see Switzerland as a lucrative market and therefore, don't invest in marketing strategies etc. This certainly doesn't improve market share, but with little or no competition in that segment, it is really a no-brainer in terms of cost/benefit. There is also the rent and wages issue but this only plays a minor part in a company's pricing strategy. It is a mix of the aforementioned factors which determine the price. I'm not familiar with Ulla Popken's company structure but I can imagine, that they have a conservative/not so aggressive business model and with that, they comfortably cater to well off women, whom might not be as price sensitive as Yendy or H&M clientele. HTH
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