On Holding AG, commonly known as On Running, is a Swiss athletic shoe and sportswear company that has rapidly gained prominence in the global market. Founded in 2010 by Olivier Bernhard, David Allemann, and Caspar Coppetti, On has distinguished itself through innovative designs and a commitment to performance, attracting both professional athletes and casual enthusiasts.
Origins and Founding Vision
The inception of On Running is rooted in the collaborative vision of its three founders. Olivier Bernhard, a former professional athlete and six-time Ironman champion, sought to develop a running shoe that delivered the ideal running sensation. In 2009, after retiring from professional competition, Bernhard partnered with an engineer who had a novel idea for running shoe technology. Together, they aimed to revolutionize the running experience by focusing on innovative cushioning systems. This partnership eventually led to the creation of On in 2010, with David Allemann and Caspar Coppetti joining Bernhard to bring this vision to fruition.
Innovative Technology: CloudTec®
Central to On’s product differentiation is its proprietary CloudTec® cushioning technology. This system features individual cloud-like pods on the sole of the shoe that compress upon landing, providing both cushioning and a firm base for push-off. The design aims to deliver a sensation akin to running on clouds, enhancing both comfort and performance. Bernhard’s initial experiments involved using pieces of garden hose to mimic the desired cushioning effect, a testament to the innovative spirit that drives On’s design philosophy. Despite initial skepticism from established brands, this unique approach has become a hallmark of On’s footwear. citeturn0search1
Product Evolution and Expansion
On’s product line has evolved significantly since its inception. In 2012, the company released the Cloudracer, a performance shoe favored by Swiss professional triathlete Nicola Spirig. Over the years, On has expanded its offerings to include various models tailored for different running experiences, such as the Cloudboom, designed specifically for competitive racing. In 2024, On introduced the Cloudboom Strike LS for the Olympic Games, featuring an upper constructed using a single, continuous filament of synthetic material deposited robotically. This innovation reduced the number of components in the shoe and minimized waste, aligning with On’s commitment to sustainability.
Global Market Presence
On’s growth trajectory has been remarkable. By 2019, the company held a 40% share of the running shoe market in Switzerland and a 10% share in Germany. In the United States, On accounted for 6.6% of the performance running shoe category in 2020, with its market share increasing to 8% in 2021. Globally, On’s market share in athletic footwear grew from 0.07% in 2019 to 0.34% in 2022. As of 2020, On products were sold in 6,000 retailers across 55 countries, reflecting its expanding international footprint.
Financial Performance
On Holding AG has demonstrated strong financial performance in recent years. In 2024, the company reported sales of CHF 2.32 billion, marking a 29.4% increase compared to the previous year. Profit rose by 204.5% to CHF 242.3 million during the same period. These figures underscore On’s successful expansion strategy and growing consumer base.
Strategic Partnerships and Endorsements
A significant milestone in On’s journey was the partnership with Swiss tennis legend Roger Federer. In November 2019, Federer became a shareholder in the company, bringing not only investment but also global recognition. This collaboration led to the release of “The Roger,” a limited-edition lifestyle shoe launched in July 2020. Federer’s involvement has been instrumental in elevating On’s brand profile and expanding its reach beyond the running community.
In March 2023, On further expanded its presence in the tennis world by announcing sponsorships of top-ranked women’s player Iga Świątek and men’s players Ben Shelton and João Fonseca. These endorsements align with On’s strategy to associate with elite athletes who embody the brand’s commitment to performance and innovation.
Innovation in Manufacturing and Sustainability
On has been at the forefront of integrating technology into its manufacturing processes. The Cloudboom Strike LS, introduced for the 2024 Olympic Games, utilized a robotic deposition method to create a lightweight and form-fitting upper. This approach reduced the number of components from the typical 150-200 to just seven, minimizing waste and highlighting On’s dedication to sustainable production practices.
Sustainability is a core value for On, influencing various aspects of its operations. The company’s focus on reducing environmental impact is evident in its product designs and manufacturing choices, resonating with environmentally conscious consumers and setting a standard in the athletic footwear industry.
Community Engagement and Sponsorships
Beyond product innovation, On is committed to fostering athletic talent and community engagement. The company founded and sponsors the On Athletics Club, a professional running group coached by Dathan Ritzenhein. The club boasts a roster that includes multiple Olympic finalists, reflecting On’s dedication to supporting elite athletes.
On has also ventured into other sports, developing bobsleigh shoes used in the 2022 Winter Olympics. This diversification showcases On’s versatility and commitment to enhancing athletic performance across various disciplines.
