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On, the Swiss footwear company backed by tennis star Roger Federer that is one of the world’s fastest-growing running brands, is stepping up a push to tap the booming health and fitness industry in China as it looks to the Asian powerhouse economy to drive further expansion.
Known for the distinctive holes in their springy “CloudTec” soles, On’s shoes have become a popular choice both among runners and leisure consumers, from Silicon Valley tech entrepreneurs to trendsetters in the trainer hotspot of Japan.
Shares in the company, which launched in 2010, have roughly doubled since it listed in New York in 2021, giving it a market capitalisation of almost $20bn and confirming its status as one the leading upstart brands taking market share from industry leaders Nike and Adidas.
Having enjoyed a meteoric rise in the US thanks to partnerships with the likes of Hollywood star Zendaya and luxury group Loewe, On is now banking on Asia, particularly mainland China and Japan, to drive a large chunk of its future growth.
“Very soon China will be among the top three markets for us . . . our goal is to bring China to 10 per cent of our global net sales over the next two to three years,” co-chief executive and chief financial officer Martin Hoffman told the Financial Times.
The company last week reported first-quarter net sales in Asia that were up 130 per cent on a year earlier to Sfr120mn, its strongest growth of any major market. Global net sales were up 40 per cent to SFr726.6mn on a constant currency basis.
On already has a presence in mainland China, where it is part of a wider boom in sports and leisurewear. The brand has a store in Shanghai’s upmarket shopping and entertainment district Xintiandi — part of a cluster that also includes Lululemon, Descente, Salomon and a nearby Hoka — and in April it opened a new flagship store in Chengdu, its biggest in China.
The growth in China of premium sportswear brands such as On, whose Cloud X 4 AD shoes are priced at Rmb1,190 ($165), is at odds with the broader luxury downturn, which has hit global companies from France’s LVMH to its Swiss rival Richemont.
“We clearly see that customers are moving away from luxury into the premium segment which is right where we are,” Hoffman said.
Restarting manufacturing in China for the Chinese market, after shifting much of its production to Vietnam and Indonesia, was also on the “road map”, he said.
Hoffman said the tariffs imposed by the Trump administration had exposed the company to uncertainty but that its latest results had shown it was on the “right track”.
However, it faces stiff competition in the country, and not just from its upstart rivals — Adidas, which reported double-digit sales growth in China last year, has also been expanding its store presence in the mainland.
Meanwhile, domestic brands such as Anta Sports, Li-Ning, and Xtep have gained significant market share and revenue as they tap into the appeal of homegrown companies. Anta, China’s biggest sportswear group, reported better than expected sales in 2024 after benefiting from an endorsement deal with US basketball star Kyrie Irving.
Hoffman said it was “very early” for On in China, and it was focused on setting new standards for consumers.
“We provide a very unique product, we have a unique identity [as a ]Swiss brand, which also, we hope, helps in the current environment,” he said.
