From ex-works price to shelf price: how a Japanese product is priced in Switzerland

Makers are sometimes surprised by the gap between their factory price and the price on a Swiss shelf. The gap is not margin alone: it is the sum of transport, duties, taxes, compliance work and the margins of each party in the chain. Understanding it helps set an export price that works for everyone.

The building blocks

1. Ex-works or FCA price in yen, converted to Swiss francs at the agreed rate.
2. International transport and insurance from Japan to Switzerland.
3. Customs duties. Many Japanese products enter Switzerland duty-free or at a reduced rate under the Japan-Switzerland free trade agreement, provided origin is documented. Agricultural products can carry significant duties.
4. Swiss VAT, currently 8.1 % at the standard rate and 2.6 % on food and non-alcoholic beverages, paid at import and recovered by the importer, then applied at each sale.
5. Compliance costs: labels, translations, analyses, cosmetics safety assessment, spread over the volume.
6. Importer margin, covering warehousing, sales, credit risk and the services described on this site.
7. Retail or restaurant margin, typically the largest single multiplier in the chain.

Working backwards

We usually start from the target shelf price in the relevant channel, since Swiss consumers have clear expectations for each category, and work back to the maximum ex-works price that still allows every party a sustainable margin. If the maker's price is above that level, the honest conclusion is to adjust positioning, pack size or channel rather than to force the launch.

Currency

Fujisan quotes to makers in yen or Swiss francs as preferred and fixes the rate for each order, so that the maker is not exposed to exchange-rate movements between order and payment.

Transparency

We share this calculation openly with our partners. A maker who understands where each franc goes can make better decisions on packaging, quantities and product range.

This guide is general information prepared by Fujisan Sagl and is not legal advice. Regulations change; we verify the applicable requirements for each product before import.