Federer-backed On aims for faster growth in bid to rival Nike, Adidas
Bloomberg
Swiss shoemaker On Holding AG plans to double sales to 3.55 billion Swiss francs ($3.85 billion) by 2026, targeting fast growth in China, as it seeks to become the world’s “most premium” sportswear brand.
The Zurich-based company has ambitions beyond 2026 of pulling in more than 10% of its net sales from China, as well as from its own network of retail stores and from apparel products, according to a statement Wednesday. Those goals underpin efforts to expand sales of its running, tennis and training shoes and apparel by more than 20% annually in the back half of this decade while ratcheting up profitability even more.
The 2026 targets are greater than the company outlined in its IPO and are “an intermediate step in our ambition to build a much bigger company in the future,” Co-CEO Martin Hoffmann said in the statement.
On is one of a few sports brands, along with Hoka and BrooksNikeAdidas
The smaller brands have gained foothold with serious runners and specialty running retail stores, taking advantage of their bigger rivals’ heavy emphasis on direct-to-consumer sales.
On, founded in 2010, initially gained a cult following in its home market and elsewhere in Europe thanks to its shoe’s distinctive tubular cushions on the sole and backing from tennis champion Roger Federer
While On still sees room to grow market share in running, it’s also focusing on expanding in markets like China and building out its customer base in fitness and tennis. The company reiterated its goal of reaching net sales of 1.76 billion Swiss francs this year and at least 58.5% gross profit margin.
