Brand of the Year

On’s Cloudrock hiker took the brand to new heights.

BRAND OF THE YEAR: ON

On It

SINCE LAUNCHING IN 2010, On has reached lofty heights worldwide with its “running on clouds” inspired performance technology that has since expanded beyond running and into trail running and performance apparel (2016); street and waterproof collections (2018); hiking (2019) and tennis (2021). Along the way, the Swiss-based company—founded by former professional athlete Olivier Bernhard and friends David Allemann and Caspar Coppetti—has racked up numerous design awards and built a cult of cloud cushioning personality among millions of elite athletes, weekend warriors, street influencers and celebrities along the way.

On’s popularity only soared to new heights in 2021, which was highlighted in September by its IPO with an initial raise of $746 million and an estimated market value of $7.3 billion. (The IPO was done in pure On form: the founders and 100 other runners jogged along the Hudson River en route to Wall Street to ring the opening bell.) Demand in 2021 spiked across all channels, regions and product categories, contributing significantly to On’s hyper-growth. Net sales increased by 68 percent in the third quarter, the strongest quarter in the company’s history, and by 77 percent in the first nine months of 2021.

In addition to groundbreaking performance and cutting-edge style, On has also scored success by being an attractive brand alternative, especially at a time when other large athletic brands have been culling down their lists of retail partners. With regards to the latter, Caspar Coppetti, co-founder, cited in its Q3 press release the continued strengthening of partnerships with “some of the most recognized premium global retailers” as a key to its success. The exec added, “We hit exciting milestones this quarter, which included becoming the official outfitter for the Swiss Olympics and Paralympics teams, introducing the Cloudboom Echo to support our athletes achieve incredible results, and wowing consumers with the new Cloudstratus.”

Here, we go into the trenches with two leading retailers on why On was a brand that delivered big time to their businesses in 2021. —G.D.

LESTER WASSERMAN, OWNER, TIP TOP SHOES AND WEST NYC: How important was On to your overall business in 2021? On was a key part of not only our athletic business, but a massive part of our overall business as customers looked to buy more to sneakers than they had in years past. The pandemic had people looking to get outside, get healthy and avoid mass transit.

Were On sales up over 2020 and 2019? Our On sales were up significantly over both 2019 and 2020. They were one of the few athletic vendors that had inventory when we needed it. We stepped up our orders and they were able to fill them.

What are some factors that make On a popular choice among your cus-

tomers? On is highly desirable, in part, to the fact that one of their key styles last year was a slip-on. People enjoy easy on/easy off footwear. Additionally, the comfort is there right out of the box. No break-in required. Lastly, the tech look of the shoe makes it look fast and lines up with how customers feel and want to feel.

Who are your On customers, and are they different perhaps than other

sneaker brand customers in your stores? The On customer ranges both in age and what they are looking to do with the shoes. We have customers 25 to 35 who train in them, as well as customers who are over 50 who wear them as casual and walking shoes. It’s tough to pinpoint a particular group because there are so many different customers wearing them. That’s what makes them a success.

JUSTIN KEHRWALD, PRESIDENT AND CEO, TRADEHOME SHOES: How important was On Running to your business last year? In 2021, On solidified itself as a top brand for Tradehome Shoes. Over nearly five years of carrying the brand, we’ve continued to confidently and enthusiastically introduce new customers to On products. Last year proved to be the year that people came to our stores because we’ve become known as a retailer that carries a great assortment and is educated on the DNA of the On brand.

Were your On sales up over 2020 and 2019? Last year was our best with On. And we expect we’ll continue to grow the brand—provided we can keep up from an inventory perspective.

What were some popular styles in 2021? The core models (Cloud, Cloud X, Cloudswift, and Cloudflow) all had great years for us. Additionally, we were able to grow business with the Roger (tennis) collection and with the more trail-inspired styles, such as the Cloudrock and the Cloudventure. Neutral colors led the way, but the more colorful offerings have definitely gained momentum.

What are some factors that makes On a popular choice among your cus-

tomers? On shoes, plain and simple, feel good and look cool. The product is ready to wear right out of the box and has a distinct styling that absolutely resonates with our customers. On does an excellent job of introducing new color assortments and silhouettes, while keeping the tried-and-true combinations fresh and desirable.

On has also helped fill a vacuum caused by athletic brands that couldn’t meet deliveries or have stopped shipping select retailers entirely. Securing product was absolutely a challenge in 2021. But On has done an excellent job keeping us updated on shipment timing and has consistently informed us whenever there has been additional inventory available to secure.