Born thirteen years ago in the Swiss Alps, it has managed to become a small global phenomenon, rivaling the sneaker giants, in its short life. It works, also known as ‘Open’, although its logo often causes confusion at first: :QC? QN? No, just ‘Open’.

Its focus on sports performance and groundbreaking design, along with a boost from Roger Federer’s entry as an investor in 2019, has achieved what seemed like the stuff of dreams: It has carved out a niche for itself in an industry as deep-rooted and competitive as sports footwear.

🇨🇭 Origin.On was founded in 2010 by Swiss runner Olivier Bernhard and his friends David Allemann and Caspar Copetti. Their goal was to create a shoe that felt like “running on clouds.”

Ironman champion Bernhard was a Nike-sponsored athlete. He became obsessed with finding the optimal responsive cushioning and began experimenting with a garden hose. He took his prototype to Nike, but it was rejected. There he decided to go it alone, aiming for the clouds and creating the On.

• The result, after many iterations, is CloudTec technology, an aesthetically recognizable sole that combines soft cushioning with explosive responsiveness.
• While the beginnings were difficult and costly, the last five years, coinciding with Federer’s arrival, have propelled him forward.

The first shoe model from Cloudracer, released in 2012. It’s clear that the design has evolved over the years. Image: Open.

📈 finance. On Running’s numbers have been public since its IPO in 2021. It did so with a market cap of $7.3 billion. Today, it’s nearly double that, at $14.3 billion.

Your figures for 2023:

• $1.996 million in revenue.
• Net profit is $89 million.

The numbers are still far from what Nike (earned $51.362 million in 2023) or Adidas ($23.190 million) are quoting, but that’s not their goal yet. They currently position themselves very close to, or even above, the top sports brands, but one step below the big two.

Even a disturbingly trendy Crocs and a historical model like Puma. There’s faith in him.

Brands like Skechers, which focuses on comfortable shoes, and Asics, a historical Japanese company, are already below.

Image: In action.

On the Cloudmonster Hyper, one of the models aimed at more advanced athletes. Image: Open.

On has also launched more traditional models without the usual soles, a sign of the brand’s identity, in order to compete with the more established models in urban fashion. This is the ‘Roger’ model. Image: On.

The leading model for running in the Cloudboom Strike LS. Image: Open.

👟 Dilemma. On Running’s success is not limited to the sports arena, even with Federer as its visible face. Its shoes sell more for their sporty looks.

In other words, they are also in demand in urban fashion as another shoe that can be worn with jeans, without being involved in sports.

• Models such as Cloud or Cloudnova played a role in this phenomenon due to their unique but not too extravagant designs.
• It’s very similar to what Converse or New Balance experimented with: sneakers that rock the street, not the track.
• Even Nike itself has experienced this with some past models, like the Jordans, as an example.
• Product lines launched specifically for this approach, such as Adidas and Yeezy, are a different example.

On must decide whether it is willing to maintain its identity as a sports performance brand or whether it takes advantage of the situation to position itself in urban fashion, losing some of its original identity.

“On’s growth in these years, especially in the last three years, is indisputable. The perception of the rider towards the brand has changed. It was seen as just another player in a market dominated by classics, but it has become a giant that is growing and growing. It invests heavily in technological innovation, very different from the disruptions experienced in recent years with midsoles, carbon plates and aggressive geometries,” he says. Pedro Moyapopular runner and founder of Runner’s Word.

“CloudTec was their identity brand, but the overall feel while running was quite solid and the cushioning and response did not make a difference compared to their competitors. That is why they preferred the shoes more with jeans and dresses for many years. They are versatile, comfortable and different in design, and their use beyond the running field is also due to the perception of On’s status brand = quality,” adds Pedro.

Moya explains that On probably has one of the highest average price catalogs in the industry, with no offers other than discounts on previous generations. In recent years, they have made strides in marketing and signing elite athletes who have been on the podium with Nike, Adidas and the company, which has changed the perception of the runner. For example, seeing athletes like Hellen Obiri win the Boston Marathon with On.

“CloudTec and Helion foam were not enough to perform at the highest level, but they managed to turn the clock by opting for a new Helion HF compound (Pebax super foam),” he adds. An evolution that, he says, has led to models like the CloudBoom Strike being “already at the level of the best performance shoes on the market.”

✨ Future. The main problem of On is to maintain growth and profitability in such a competitive market where the whole Nike is experiencing turbulence. Expansion, fashion entry and sports essence are the three environments that need to be balanced.

The new market dynamics, along with the tough economics of subscriptions, have also been embraced by the brand, which offers a sneaker subscription program, Cyclon. Recyclable, of course.

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Featured image | On, Xataka