Running may be On Holding’s claim to fame in the footwear market. But executives of the Swiss athletic brand are making sure to diversify its product range and marketing efforts outside of the singular sport.
“I think it’s important to not just be a one-trick pony,” On co-founder and executive co-chairman Caspar Coppetti said in a Tuesday call with analysts. “We’re no longer just a running brand. We also have significant business, for example, in training, in tennis, and of course, on the lifestyle side.”
While On is rooted in performance — and is largely focused on running products — the brand has delved into other categories as well. Tennis, as a category, is growing faster than running at On, even though it is a much smaller category by comparison. On has also gained favor among non-athletes as well who have opted to buy the brand for its “cool” factor.
When it comes to innovation, On’s goal is to focus on product development within strong franchises that live within each sports vertical, Coppetti said. For example, after a successful launch of the Cloudsurfer Next road running shoe in Q3, On is now gearing up to launch the Cloudsurfer 2 in Q1 of 2025. On is also planning to launch the Cloud 6, an update to the Cloud 5 that is priced $10 higher to “capture more of that willingness to pay a premium price for a premium product that we see in the market,” Coppetti said.
Watch on FN
And addition to evolving and growing successful existing franchises, On is also creating new lines from scratch.
“We’re also not just resting on the laurels in terms of existing franchises,” Coppetti said. Next spring, the brand is planning to launch a brand new franchise, the Cloud Zone, that will kick off with a campaign featuring On partner Zendaya.
According to Coppetti, this new lower silhouette shoe will be “very much on trend, but not from a retro perspective, like some of our competitors do it.” Instead, he said this new franchise will have a “futuristic take” and be “performance inspired.”
When is comes to marketing efforts, On still plans to build up its presence in the competitive performance running category but is leaning into adjacent categories, such as tennis and training, and is also building up the brand’s presence in outdoor.
“[We’re] much looking forward to also bringing On to the trail much more and communicating On as an outdoor brand,” On co-chief executive officer Marc Maurer said in a call with analysts.
On Holding outperformed in the third quarter and achieved a record in both net sales and profitability. As a result, On raised its full-year projections as it approaches what it expects to be a strong holiday season. Maurer told FN sister publication WWD that the company is well on its way to reaching its previously announced goal of doubling its 2023 revenues by 2026.
