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April 4, 2023: According to the McKinsey 2023 Sporting Goods report, the athletic footwear market in the US declined in 2022, with revenues falling 6.1% and unit sales dropping 8%. The report also notes that consumer intent to purchase footwear fell in 2022, and that half of those surveyed expect to buy fewer items in 2023. Against this background, On, the Swiss upstart running-shoe brand founded in 2020, saw its revenues increase nearly 70% year-over-year in 2022, reaching $1.3bn, while adjusted EBITDA was up 71% to $181.4m. The company predicts that revenues will grow nearly 50% in 2023 to reach $1.9bn. Distributed in over 60 countries through retail partners and DTC online, On’s claim to fame is its innovative CloudTec design, which promises runners the feeling of “running on clouds,” combined with its rock-solid commitment to sustainability and the circular economy.
On’s environmental mission is “to make high-performance products with the lowest possible footprint, engineered for circularity, and with preferred materials, manufacturing methods and distribution models.” The company uses its technology-driven, innovative approach that powers its design to sustainability. Its latest Cloudsurfer model’s upper is made from 100% recycled materials, and its specialized dyeing technique saves 90% of the water used in traditional dyeing methods.
The Cyclon subscription model, launched as an experiment, came from the recognition that On’s customers wear out their running shoes, unlike many other sneaker brands that don’t have to stand up to such heavy use. Subscribers pay $30 per month and can get a fresh pair of running shoes whenever needed, sending the old ones back to be recycled. So far, the company has signed up several thousands of runners in the program, with more men than women participating.
