Swiss company On Holding, which raised its fiscal 2023 sales forecast by 2 percent to at least $1.9 billion last month, remains committed to building a complex, multibillion-dollar sportswear brand that focuses on the premium segment and is not overdistributed. The Swiss group’s co-CEOs, Martin Hoffman and Marc Maurer, provided some strategic guidance at the Stifel 2023 Cross Sector Insight Conference in Boston, USA.
The brand, currently sold in 50 countries, has made steady progress with performance runners in its 12 years of existence, but On’s appeal won’t be limited to that target audience, that footwear category or the run specialty channel, Hoffman and Maurer said. While the company is rooted in running, it is working to expand its presence in apparel and extend the brand into other footwear segments, which currently consist of trail, tennis and active footwear. In addition to performance and premium, sustainability is also a key brand message for On to increase brand awareness and reach among younger consumers. The company seeks to control the discount environment by pricing its premium offerings about $10 to $20 above similar products from competitors.
On has developed a solid distribution strategy for the brand, which achieved 86 percent wholesale sales growth and 64 percent DTC sales growth in Q1. On’s own retail segment launched in 2019, and while the brand has yet to gain traction with some retailers, the company has successfully grown its global wholesale business without being over-penetrated. Stifel estimates On has grown its wholesale sales by 40 percent (CAGR) since 2019.
