Over the last few years, leaders like Nike and Adidas have lost market share to growing brands like On, Hoka, and New Balance. All the brands are growing as a whole but also physically by opening direct-to-consumer stores. In the fiercely competitive arena of performance footwear, Swiss brand On has not only entered the race but has swiftly moved to the front of the pack.
With a history of innovation and a commitment to sustainability, On has had a remarkable journey from a simple prototype to a major player in the global market. Founded in 2010 by Olivier Bernhard, a former Ironman champion, On started with a serendipitous discovery on a Floridian beach, leading to a new cushioning for running shoes. “The first On shoe was actually a cut-up garden hose glued to the bottom of one of his trainers… we’ve come a very long way from that prototype,” recounts Britt Olsen, Chief Commercial Officer at On. This makeshift prototype sparked the creation of a shoe that combined performance with unprecedented comfort, setting the stage for a brand that would challenge the dominance of established giants like Nike and Adidas.
Olsen reflects on the brand’s early days with pride, “In 2010 and for many years, we faced a lot of ‘no’s, a lot of closed doors, but we’ve been the fastest growing sports brand globally for a few years now.” The brand went public in 2021 at $24 a share and has more than doubled that. According to the brand’s 2023 annual report, net sales were approximately $1.8 billion CHF ($2 billion USD), growing by 46.6% year-over-year and 68.7% in the years prior, with most of those sales coming from the Americas. The company also shared plans to double net sales from 2023 through 2026.
Strategic Expansion and Distinctive Store Experiences
The launch into retail was a calculated move to control brand storytelling and enhance customer experience. On’s first store outside of Asia opened in Lafayette, New York, in 2020, marking the beginning of an ambitious expansion that saw around 20 to 25 stores opening each year. Olsen explains, “We knew we wanted to be a truly omni-channel brand. For us, wholesale still plays a critical role. Anytime we enter a new market, one of the first things we do is go in with wholesale partners because they will always help you build that credibility, authenticate the brand, sit in front of the customer, and tease them a bit to try something new. Once you establish some of this groundwork, retail plays a big role…there are many sports brands in the world, many fast-growing brands, but there’s really never been a sports brand also trying to be very premium, and to do that, it’s important for us to own this channel, and the DTC space is where we control the storytelling, the design, and the experience.
On works with wholesale partners like JD Sports, Nordstrom, and REI, among many others. It continues to rely on its wholesale business and foster those connections while focusing on growth in its direct retail channel. Recent openings include NYC Flatiron, Chicago’s Rush and Oak, Austin’s South Congress, and Las Vegas North Premium Outlets.
The NYC Flatiron store underscores On’s commitment to creating immersive retail environments. Spanning 4,596 square feet within a 1930s landmark building, this flagship store meticulously preserves historical elements while infusing modern, Swiss-inspired design features. Expansive windows amplify visibility, while nature-inspired details resonate with the urban runner, blending heritage with innovation.
Similarly, its new Chicago store on Rush Street spans 4,553 square feet and strategically opened in time for the Chicago Marathon. The store’s design celebrates the city’s industrial heritage, with open ceilings and wood accents inspired by Chicago’s iconic bridges, creating a dynamic and inviting space for runners and athletes.
“No matter where you enter, you know it is an On-branded store, even without a logo. That’s the goal; how can you create an experience or a design element that’s so differentiated,” Olsen shares. Each store serves as a point of sale and as a hub for the local community, hosting events and fostering connections through design and shared experiences.
Future Retail Expansion
As On continues to grow, Olsen is optimistic about the future, “Retail is our fastest growing channel… We have an ambition for retail to become 10% of our overall business. It’s a pretty aggressive target, but we know our customers are responding well to retail.” Expansion plans include increasing store numbers and elevating experiences in existing markets, particularly in China and new markets in Latin America and the Middle East.
Other rising footwear brands are also making strides in retail. Hoka, now owned by Deckers, shared plans earlier this year for expansion in the US market and internationally. It opened a US flagship in NYC in the spring and currently has 11 US stores and another 28 internationally, according to Deckers’ latest quarterly report. Similarly, according to ChainXY, New Balance opened 32 stores globally, and Under Armour opened 62 international stores in 2024. It’s clear there is demand for footwear and sportswear retail across the globe.
In addition to retail, wholesale remains vital to On’s strategy. “We’re focusing on efficiency, partnership, and customer connection with the existing accounts,” says Olsen. This multi-faceted approach ensures that On remains a formidable presence across different platforms, catering to a diverse consumer base.
As the holiday season approaches, On is set to captivate customers with exclusive product launches. “The Cloudtilt is Zendaya’s staple shoe this year, so we did an exclusive colorway for the holiday,” Olsen shares. These limited editions not only meet functional needs but also cater to the Lunar New Year and aesthetic preferences, enhancing consumer engagement during festive periods.
As On races forward, due to celebrate its 15th anniversary in January, its physical footprint in retail and wholesale channels promises new opportunities for growth and customer engagement, ensuring its place at the forefront of the sportswear industry.
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