In just over a decade, On has grown from a little-known Swiss footwear start-up, backed by a small but passionate community of runners and outdoor enthusiasts, to a premier global sportswear brand. that has caught the attention of the fashion industry.
But the path from a makeshift prototype in a Swiss backyard to a New York Stock-listed retail wunderkind wasn’t always easy.
Undeterred by their lack of footwear industry experience, On’s three founders – Olivier Bernhard, Caspar Coppetti and David Allemann – knew in 2010 what they had to do to win. “We really had no idea how to make shoes, but we knew the technology we had developed was unique,” said Coppetti, now CEO of On.
To realize their ambitions, the founders had to build a supply chain to help them scale; prioritize where to grow the brand geographically; design a disciplined approach to distribution and marketing with a focus on specialty retail; and gain credibility for the brand’s product in a crowded niche market. Those forces would have to come together if On had any chance of competing with the big incumbents like Nike and Adidas, as well as smaller players like New Balance, Asics and Saucony.
On’s reputation for forging its distinctive path to growth has helped set it apart. While other start-ups in the last decade have focused primarily on being direct-to-consumer (DTC) brands, On initially pivoted towards specialty wholesale, which allowed it to create a niche and loyal following, before entering into wholesale deals. larger and gradually introducing DTCs. On also secured its place at the top end of the global sportswear industry, worth about $384 billion in 2021, according to McKinsey & Company, by avoiding discounts under a disciplined strategy so that supply never exceeds supply. demand.
the fashion business talk to On’s founders, management team and product designers at the company’s sleek new 16-storey headquarters in Zurich to explore their growth strategies.
This case study reveals how start-ups can become multi-million dollar companies through a combination of continuous innovation, adaptability and opportunism in a fiercely competitive market, and the ability to quickly learn from their mistakes while never losing sight of the core essence of your business. brand.
The report covers four key components of On’s growth strategy:
1. Think big and scale fast
What challenges did On need to face to build the brand globally.
2. Specialized retail relations
Why On’s founders focused on specialty retailers to support their distribution and marketing, prioritizing wholesale over direct-to-consumer.
3. The Federer Effect
How tennis superstar Roger Federer helped pave the way for new products and partnerships.
4. Continuous innovation
How On draws on its community to keep a constant pace of product innovation.
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Editor’s Note: This case study was revised on September 22, 2022 to correct the current job titles of On’s founders, as well as an engineer who developed the initial On footwear. The year that On received an early innovation award has also been changed.
Source: www.businessoffashion.com