Swiss fashion company On Holding AG, backed by tennis star Roger Federer, is aiming for faster growth as it seeks to challenge industry leaders Nike Inc and Adidas AG..
Here are some key highlights from the article:.
– On’s growth trajectory: The company, founded in 2010, has experienced impressive growth in recent years, with sales expected to reach CHF 1 billion ($1.1 billion) in 2023. It aims to achieve CHF 5 billion ($5.5 billion) in revenue by 2025, driven by expansion in key markets like North America and Asia..
– Market competition: On faces stiff competition from established sportswear giants like Nike and Adidas, which dominate the global athletic footwear and apparel market. These competitors have extensive brand recognition, vast distribution networks, and significant marketing budgets..
– Product innovation: On differentiates itself through its focus on product innovation, sustainability, and performance. The company has gained recognition for its patented CloudTec cushioning technology, which provides a unique running experience. It also emphasizes sustainable practices, using recycled materials and minimizing its environmental footprint..
– Brand ambassadors: On has partnered with high-profile athletes like Roger Federer, who has been a shareholder and brand ambassador since 2019. The company believes such partnerships enhance its credibility and appeal among consumers..
– Retail expansion: On plans to expand its retail presence globally, with a focus on flagship stores and pop-up shops in key cities. The company sees physical retail as an essential channel to connect with customers and provide a premium shopping experience..
– Direct-to-consumer strategy: In addition to retail expansion, On is also investing in its direct-to-consumer (DTC) channel. The company recognizes the importance of building a strong online presence and engaging with customers directly through e-commerce..
– Sustainability initiatives: On is committed to sustainability and aims to become a fully circular company by 2030. It actively works to reduce its environmental impact, minimize waste, and use eco-friendly materials in its products..
– Financial performance: On’s financial performance has been solid, with strong growth in recent years. The company reported a 67% increase in sales in 2022, driven by demand for its running shoes and apparel..
Overall, On Holding AG is a rapidly growing fashion company with ambitious goals to challenge industry leaders Nike and Adidas. The company’s focus on product innovation, sustainability, and brand partnerships has contributed to its success so far. As On expands its retail presence, invests in direct-to-consumer channels, and strengthens its commitment to sustainability, it aims to become a major player in the global sportswear market..
