Core Viewpoint - The article discusses the rise of On, a Swiss running shoe brand, emphasizing its innovative approach, market strategies, and growth potential, particularly in the Chinese market. Group 1: Company Overview - On was founded in 2009 by three individuals in Switzerland, aiming to create a unique running shoe that was initially rejected by major brands like Nike and Adidas [4][7]. - The brand has grown significantly, selling over 10 million pairs of shoes in 2021 and achieving a global market share of 2% [5]. Group 2: Market Strategy - On aims to achieve CHF 3.5 billion in revenue by 2026, with a focus on the US and China as key markets [5][11]. - The company plans to increase its market share in China to 10% and expand its product range beyond running shoes to include training and tennis [12][30]. Group 3: Innovation and Technology - On's unique selling proposition includes its patented CloudTec technology, which offers a lightweight and comfortable running experience [15][18]. - The introduction of LightSpray™ technology allows for automated shoe production, significantly reducing manufacturing time and enhancing design flexibility [17][19]. Group 4: Retail and Consumer Engagement - On has shifted from relying on distributors to establishing its own retail network, with plans to increase store numbers in China from 58 to 80 by the end of 2024 [31][28]. - The brand is leveraging digital experiences in stores to enhance customer engagement, such as virtual try-ons through interactive screens [21][22]. Group 5: Future Outlook - On aims to double its net sales to at least CHF 3.55 billion by 2026, with a gross margin target of over 60% [27]. - The company recognizes the growing middle class as a significant driver for its growth, aiming to maintain its high-performance brand image while appealing to a broader consumer base [34].

Core Viewpoint - On is expected to become the second-largest market for the company in the next three to five years, with a focus on expanding its presence in China [2][28]. Group 1: Company Background and Growth - On was founded in 2009 by three individuals in Switzerland, who sought to create a unique running shoe after being rejected by major brands like Nike and Adidas [5][7]. - The company initially grew in Europe, particularly in Germany, and made a significant move to the U.S. market post-pandemic, aiming to establish a strong foothold [5][6]. - In 2021, On sold over 10 million pairs of shoes, achieving a global market share of 2%, and reported a 33% growth rate last year, exceeding financial targets [5][14]. Group 2: Strategic Goals and Market Focus - On aims to achieve CHF 3.5 billion in revenue by 2026, with China being a key market contributing to this goal, targeting a market share of 10% in China [10][26]. - The company plans to expand its product range beyond running shoes to include categories like training and tennis, enhancing its overall market presence [11][27]. - On's strategy includes increasing brand awareness and establishing a direct-to-consumer model, particularly in China, where it has a growing number of retail stores [29][30]. Group 3: Innovation and Technology - On has introduced innovative manufacturing technologies like LightSpray™, which allows for rapid production of shoes, significantly reducing the traditional manufacturing process [19][20]. - The company emphasizes the importance of unique product design and advanced digital experiences in retail, aiming to enhance customer engagement and streamline the purchasing process [21][23]. - The first mass-produced shoe using LightSpray™ is the Cloudboom Strike LS, priced at $330, showcasing On's commitment to high-quality, innovative products [17][18]. Group 4: Market Position and Consumer Insights - On is recognized as a brand appealing to the rising middle class, with a brand awareness of 30% in China expected to reach 50% in major cities by 2024 [27][28]. - The company is focused on maintaining its high-performance brand image while also appealing to everyday consumers, leveraging the growing demand for quality products among the middle class [31][32]. - On's retail strategy in China is crucial, with plans to increase the number of stores and enhance the shopping experience to attract more consumers [29][30].