On’s Growth Potential

Since its inception in 2010, On has been on an impressive trajectory, with plans to break into the top five sportswear brands by 2025. What sets On apart from other top 20 sportswear brands is that it’s the only one founded in the 21st century. In 2017, the company expanded into apparel, and by 2020, tennis legend Roger Federer became a 3% shareholder. On went public in 2021, and by 2024, it celebrated a 32% annual revenue increase, reaching $2.6 billion. Recently, On made waves with its first Super Bowl ad, featuring a humorous exchange between Elmo and Federer about the brand's name. As an On employee working at the company’s largest U.S. branch, here’s my critical take on the brand’s growth, future prospects, and the steps it can take to dominate the sportswear industry.

Diversity: Expanding the Reach

While On is making strides in promoting diversity through partnerships with artists like FKA twigs and Zendaya, as well as launching Lunar New Year collections, there’s room for deeper cultural engagement. On’s diverse run clubs, like the one at the Lafayette store in Noho, reflect New York City’s melting pot. However, during the 2024 New York City Marathon, it was glaringly evident that the corporate team remained predominantly white, a contrast noticed by the racially diverse retail staff and run clubs cheering around their stations. This disconnect was also apparent when On chose to end the Lafayette run club, reducing its accessibility to a wider community.

On’s tennis roster, while stellar, is predominantly white, with the exception of Ben Shelton. I would love to see players like Learner Tien and Zheng Qinwen—who inspire me personally—representing the brand. On is still relatively new to the tennis world, but increasing support for POC athletes is crucial if they want to broaden their influence.

Expanding the faces of the brand and diversifying its corporate staff is essential to achieving true cultural relevance. On’s Lunar New Year collection doesn’t hold much weight if it’s not represented by figures who resonate within the AAPI community. A prime example is Tiger Woods’ influence in bringing golf to Thailand. To reach new markets, On must focus on this strategy, ensuring that the diversity they celebrate in campaigns is reflected in the people behind the brand.

Apparel: A Signature Identity

At On, we’re often told that shoes sell themselves, so the focus should be on promoting accessories and apparel. This is true—our store boasts a solid conversion rate of 20%, but only 15% of those sales are from apparel. The issue lies in the lack of clear distinction between On's apparel and that of competitors like Alo and Lululemon. When customers ask about the uniqueness of On’s apparel, staff struggle to provide a compelling answer. To stand out, On needs to develop a signature feature or look for their apparel line, and equip staff with the knowledge to effectively communicate its value.

Expos: Expanding Presence at Major Events

On has been successful with pop-ups around the world, but its presence at expos is lacking. As an athlete who has run several marathons globally, I’ve only seen On at one expo—the 2022 Berlin Marathon. When I attend events like the running show in Boston next week, On won’t be there. Additionally, On has missed expos at major marathons such as New York City. Even at Disney World, their shoes are available, but only through third-party vendors.

Pop-ups can be exciting, but they must be strategically located and well-marketed to attract attention, especially at major events like marathons. For instance, On’s 2024 Cloudboom Strike LightSpray pop-up could have been more effective if it had been closer to the marathon expo, with a broader range of products available for purchase. By focusing on convenience and accessibility, On can improve visibility and attract more potential customers.

Investing in Other Sports: Expanding the Horizon

On’s focus has largely been on running, tennis, and lifestyle. However, if they want to compete with giants like Nike, Adidas, Puma, Under Armour, and Lululemon, they must expand into other sports. These top brands have already made significant inroads into soccer, American football, and basketball, areas where On has yet to make an impact. A move into sports-inspired footwear outside of their Roger series, like Adidas’ iconic Sambas, could help On tap into these markets. Expanding their range beyond tennis and running will be key to reaching the brand’s ambitious goals.

Conclusion: The Path Forward

On has seen remarkable growth since 2010, but there are untapped opportunities that could propel the brand into the top tier of sportswear companies by 2025. Expanding diversity in both leadership and athlete sponsorships will help On connect with a broader audience and fully embody its mission to inspire movement for all. Strengthening the apparel line, increasing retail training, and creating a signature brand identity will allow On to better compete with established market leaders. Additionally, increasing visibility at major expos and global sporting events will strengthen On’s presence. Lastly, expanding into new sports will allow the brand to capture new demographics and compete more effectively with the industry’s giants. With the right strategic adjustments, On has the innovation and momentum to achieve its goal of becoming a top-five sportswear brand within the next decade, rather than in 2025.