In a year defined by rapid expansion and a renewed focus on brand building, On has proven itself to have staying power and be a competitive player in the global premium sportswear market.
Originally known for its innovative running shoes, the brand has spent this year making a strategic push into new categories, collaborating with high-profile fashion brands and targeting a young, style-conscious demographic. It also launched spray-on running shoes, opened a store in Paris in time for the Olympics, and launched a campaign with ambassador Zendaya in the middle of the Challengers press tour.
Mark Mauer, co-CEO of On, believes this year’s strategy has laid the foundation for the brand’s continued growth. “What we were able to accomplish in 2024 is nothing short of transformational,” Mauer told Glossy. “We’ve always been rooted in performance and innovation, and now we’re expanding that story: blending performance and lifestyle in a way that connects with today’s consumers.”
The numbers seem to confirm Mauer’s optimism. On reported a 20% year-on-year increase in revenue for the third quarter of 2024, reaching CHF 623 million ($683 million). This growth was primarily driven by direct-to-consumer sales and strong growth in the Asia-Pacific market, where consumer demand surged, particularly in Japan and China. Mauer said the brand’s decision to shift marketing investments from lower-funnel, conversion-driven strategies 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 is resonating,” he said.
This year, On also made a big push into strategic collaborations to expand its reach beyond its core running community. Mauer said Icon’s activewear collection, launched this month, has been an outstanding success. Targeted squarely at the Gen Z consumer, the capsule combines On’s signature performance elements with streetwear-inspired silhouettes and is made to be worn from the gym to the street. “The Icon Collection shows that we are listening to the wishes of young consumers,” Mauer said. The collection was promoted by young creators posting videos of themselves wearing it on Instagram.
In parallel, On’s collaborated with Korean fashion collective Post Archive Faction on a product collection to expand its cultural relevance. Combining On’s technical expertise with PAF’s avant-garde design ethos, the collection sold out almost immediately, with particularly strong sales in Asian markets. “We are always looking for partners who share our vision of craftsmanship and innovation,” Mauer said. “Working with PAF allowed us to step out of our comfort zone in the best possible way and the response was phenomenal. It sold out so quickly that even I couldn’t buy it.” And the marketing of the collection was also done in an interesting way. Hidden pieces of the On x PAF collection await in an activation focused on a public geo-treasure hunt trail set on Mt. Busan, the heart of Seoul’s vibrant hiking culture. To be found.
Additionally, On continued its partnership with Spanish luxury brand Loewe. The collaboration, which began in 2022 and is now in its fifth season, debuts a co-branded logo, rare for LVMH-owned Loewe, and represents the deep trust and collaboration between the two brands. “We (with Loewe) wanted to create something that celebrated the craftsmanship and innovation that both brands are known for,” Mauer said. “Footwear, especially running shoes, is still a very handcrafted business. Each pair includes over 50 components meticulously assembled by skilled hands. It’s these details that make It sets us apart and allows us to deliver the performance and quality our customers expect.”
The latest On x Loewe collection combines On’s signature technical materials and performance-driven design with Loewe’s luxurious aesthetic to create pieces that are both functional and fashionable. This partnership perfectly reflects On’s collaborative strategy of building long-term relationships that allow both parties to push creative boundaries while reaching new audiences. And given the rash of collaborations between brands, it takes some skill to pull it off.
Additionally, On sought to deepen its connections with the community and expand into new categories. Specifically, we increased our focus on products in the lifestyle and training categories. In March, the company launched its first training-specific shoe, Cloud Pulse. With younger generations spending more time in the gym and incorporating fitness as part of their lifestyle, On saw an opportunity to capture this growing demographic. “We’re known as a running brand, but training is an area we’re focusing on heading into 2025,” Mauer said.
Looking ahead, Mauer is clear about On’s priorities, including expanding its footprint in apparel and retail. In the third quarter of 2024, 95% of sales were from shoes, 4.2% from apparel, and the rest from accessories. On’s long-term goal is to reach a net sales share of 10% in apparel, 10% in own retail, and 10% in China. “Apparel will get a lot of attention in 2025,” he said. “For our clothing line to be truly successful, it needs to be properly showcased in our stores.” On will be launching around 20 stores next year, focusing on trendy cities and flagship experiences. We are planning to open a new retail store. “We recently opened our largest stores to date in Chicago and New York, and the response has been incredible. It’s all about creating spaces where customers can truly experience the brand.” Mauer said.
Despite the macroeconomic challenges affecting the retail industry, On’s financial health remains strong. The brand has consistently grown sales while effectively controlling costs. By focusing on efficiency, the company has been able to maintain profitability while investing in expansion. “When you’re growing 20 to 30 percent year over year, you don’t need drastic cost-cutting measures,” Mauer said. “We are focused on growing revenue faster than costs and scaling smartly to maintain healthy profit 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 a young, environmentally conscious consumer group. . “Sustainability isn’t a trend for us; it’s a promise,” Mauer said. “We are constantly exploring new materials and technologies that enable us to innovate while reducing our impact on the environment.”
This includes the spray-on Cloudboom Strike LS shoe, which launched in April of this year. Proprietary LightSpray technology creates the shoe’s upper in three minutes, reducing carbon emissions by 75% compared to traditional sneakers. Although the first run sold out quickly, the company plans to restock the show in select countries over the coming months through 2025.
The goal is to blend performance, style and sustainability in a way that appeals to both athletes and the general consumer. “We’re not done yet,” Mauer said. “There’s a lot to come, but we’re just getting started.”
