During its year defined by rapid expansion and a renewed focus on brand-building, On is proving that it has staying power and is a competitive player in the global premium sportswear market.
The brand, which originally made a mark with its innovative running shoes, has spent this year making a strategic push into new categories, collaborating with high-profile fashion brands and targeting a younger, style-conscious demographic. It also launched a spray-on running shoe, opened a Paris store timed to the Olympics and launched a campaign with ambassador Zendaya at the height of the “Challengers” press tour.
Marc Maurer, co-CEO of On, is confident that the year’s strategies set the foundation for sustained brand growth. “What we’ve been able to accomplish in 2024 is nothing short of transformative,” Maurer told Glossy. “We’ve always been rooted in performance and innovation, but now we’re expanding that narrative. It’s about merging performance with lifestyle in a way that connects with today’s consumers.”
The numbers seem to back up Maurer’s optimism. For the third quarter of 2024, On reported a year-over-year revenue surge of 20%, reaching 623 million Swiss francs ($683 million). This growth was largely driven by direct-to-consumer sales and significant gains in the Asia-Pacific market, where consumer demand soared, especially in Japan and China. According to Maurer, the brand’s decision to shift marketing investments from lower-funnel, conversion-driven tactics to broader brand awareness campaigns was key to this success. “We made a conscious decision to invest in brand storytelling, especially around the Olympics, and it’s resonating,” he said.
This year, On also leaned heavily into strategic collaborations to extend its reach beyond its core running community. The Ikon activewear collection, which dropped this month, has been a standout success, according to Maurer. Aimed squarely at Gen-Z consumers, the capsule blended On’s signature performance elements with streetwear-inspired silhouettes, and the pieces were made to go from the gym to the street. “The Ikon collection is our way of saying that we’re listening to what younger consumers want,” Maurer said. The collection was marketed with videos of young creatives wearing it on Instagram.
In parallel, On’s collaborated on a product collection with South Korean fashion collective Post Archive Faction to broaden its cultural relevance. The collection, which combined On’s technical expertise with PAF’s avant-garde design ethos, sold out almost immediately, seeing especially high sales in Asian markets. “We’re always looking for partners who share our vision for craftsmanship and innovation,” said Maurer. “Working with PAF pushed us out of our comfort zone in the best way possible, and the response was phenomenal. It sold out so quickly that even I couldn’t get a pair.” And marketing the collection was done in an interesting way as well –set on Buchan Mountain, a centrepiece of Seoul’s vibrant hiking culture, the activation focused on a geo treasure-hunt trail for the public, with hidden pieces from the On x PAF collection waiting to be found.
In addition, On continued its partnership with Spanish luxury brand Loewe. The collaboration, which began in 2022 and is now in its fifth season, debuted a co-branded logo — a rarity for LVMH-owned Loewe — representing a deep level of trust and alignment between the two brands. “[With Loewe,] we wanted to create something that celebrated the craftsmanship and innovation both brands are known for,” Maurer said. “Footwear, especially our running shoes, is still a very handcrafted business. Each pair involves over 50 components meticulously assembled by skilled hands. It’s these details that set us apart and allow us to deliver the performance and quality our customers expect.”
The latest On x Loewe collection melds On’s signature technical materials and performance-driven designs with Loewe’s luxury aesthetic, offering pieces that are both functional and fashion-forward. The partnership perfectly reflects On’s collaboration strategy: engaging in long-term relationships allowing both parties to push creative boundaries while reaching new audiences. And considering the spate of collaborations between brands, doing it well requires some finesse.
In addition, On aimed to deepen its connection with communities and expand into new categories. Specifically, the brand upped its focus on lifestyle- and training-category products. It launched its first training-focused shoe, the Cloud Pulse, in March. With the younger generation spending more time in gyms and embracing fitness as part of their lifestyle, On saw an opportunity to capture this growing segment. “We’re known as a running brand, but training is an area we’re doubling down on for 2025,” Maurer said.
Looking ahead, Maurer is clear about On’s priorities, which include expanding its footprint in apparel and retail. In the third quarter of 2024, shoes were 95% of sales, apparel was 4.2%, and accessories accounted for the rest. On’s long-term targets are to reach net sales shares of 10% apparel, 10% owned retail, and 10% China. “Apparel is going to be a big focus in 2025,” he said. “For our clothing line to truly succeed, we need to showcase it properly in our own stores.” On plans to open about 20 new retail locations next year, with a focus on fashion-forward cities and flagship experiences. “We recently opened our biggest stores yet, in Chicago and New York, and the response has been incredible. It’s about creating spaces where customers can truly experience the brand,” Maurer said.
Despite the macroeconomic challenges affecting retail, On’s financial health remains strong. The brand has consistently grown its top line while managing costs effectively. The company’s focus on efficiency has allowed it to maintain profitability even as it invests in expansion. “When you’re growing at 20-30% year-over-year, you don’t need drastic cost-cutting measures,” Maurer said. “Our focus is on scaling smartly — growing revenue faster than costs to maintain healthy margins.”
On will also focus on sustainability by investing in sustainable materials and production processes that align with its premium positioning and the expectations of its younger, environmentally-conscious consumer base. “Sustainability is not a trend for us; it’s a commitment,” Maurer said. “We’re constantly exploring new materials and technologies that will allow us to innovate while reducing our environmental impact.”
This includes the spray-on Cloudboom Strike LS shoe, which launched this April. A proprietary LightSpray technology creates the shoe’s upper in three minutes, facilitating a 75% reduction in carbon emissions compared to traditional sneakers. The initial launch quickly sold out, but the company plans to restock the show in selected countries over the next couple of months and into 2025.
Blending performance, style and sustainability in a way that appeals to both athletes and everyday consumers is the goal. “We’re far from done,” Maurer said. “There’s so much more to come, and we’re just getting started.”
