The Foundation of Success
On’s success lies in its unique approach to product innovation, strategic partnerships, and unwavering commitment to quality. From its inception, On disrupted the athletic footwear industry by reimagining the running shoe with Cloud Technology. This innovative cushioning system propelled On into the spotlight, offering runners a new level of comfort, performance, and support.
On strategically positioned itself by forging key partnerships with retailers and distributors worldwide. By leveraging wholesale distribution channels through independent run-specialty retailers, On penetrates new markets and continues to establish a robust retail presence, ensuring its products are accessible to athletes and enthusiasts across the globe. This strategic approach to distribution enabled On to scale rapidly and gain traction in highly competitive markets.
It’s no secret that the brand’s commitment to quality and craftsmanship has been integral to its success on a global scale. With a focus on Swiss design principles and meticulous attention to detail, On has cultivated a reputation for excellence and reliability. By consistently delivering top-tier products that exceed customer expectations, On has earned the trust and loyalty of athletes worldwide, further solidifying its position as a leader in the athletic footwear industry.
Breaking Down the Elements: How Wholesale Distribution Propelled On Forward
Wholesale distribution is a cornerstone of On's remarkable journey to success. Its wholesale sales are still higher than its direct-to-consumer sales, which Co-CEO Marc Maurer sees as an essential part of its strategy.
On has conquered wholesale distribution through a strategic and systematic approach that prioritizes partnerships, market penetration, and brand visibility.
Partnering with Retailers
On strategically partners with retailers worldwide to expand its reach and establish a strong retail presence through key partners, including Fleet Feet and Dick’s Sporting Goods. By collaborating with reputable sporting goods stores, specialty running shops, and fashion retailers, On ensures its products are readily available to consumers in key markets. Data-sharing availability is an integral part of these partnerships, so On can control the number of products in the market.
These partnerships also provide valuable insights into local consumer preferences and trends, allowing the brand to tailor its product offerings and marketing strategies accordingly.
On Running Pop-Up in Le Bon Marche, Paris
Market Penetration
On has successfully penetrated new markets through wholesale distribution channels and expanded its global footprint. On gains access to diverse customer demographics and geographic areas by partnering with established retailers in different regions. This allows the brand to reach a wider audience of runners and outdoor enthusiasts who may have yet to become familiar with On's products.
In the last few years, On has also started to open its own branded retail locations including Tokyo, Zurich, New York and Los Angeles. On has announced plans to open Miami, London, and Paris ahead of the Olympics. But these stores are in addition to a solid wholesale presence; in 2022, for example, the brand expanded its distribution from about 8,000 to 9,200 doors.
On's London flagship store
Retailer Support and Training
On provides extensive support and training to its retail partners to ensure they can effectively showcase and sell On products. This includes providing retailers with comprehensive product training, marketing materials, and sales support to help them educate customers about the benefits of On's innovative technology and superior craftsmanship. By empowering retailers with the knowledge and resources to succeed, On strengthens its relationships with retail partners and drives sales growth in wholesale distribution channels.
Channel Management and Optimization
On manages and optimizes its wholesale distribution channels to maximize sales and profitability. This includes monitoring inventory levels, managing product assortments, and implementing pricing strategies to ensure that On products are competitively priced and readily available to consumers. By effectively managing its wholesale distribution channels, On can minimize channel conflicts, improve inventory turnover, and enhance overall sales performance.
By prioritizing these key areas, On has conquered wholesale distribution and established itself as a leading brand in the athletic footwear industry.
Online Retail: Leveraging E-commerce Channels for Growth
In today's digital age, online retail is pivotal in reaching consumers worldwide. On has recognized the significance of e-commerce channels and has strategically leveraged online platforms to expand its reach and accessibility. By offering seamless online shopping experiences and robust digital marketing initiatives, On has successfully tapped into e-commerce growth, further fueling its growth trajectory.
Expanding beyond traditional wholesale distribution, On has also conquered the direct-to-consumer (DTC) arena by leveraging e-commerce channels for growth.
Robust E-commerce Platform
On has invested in building a robust e-commerce platform that provides customers with a seamless and intuitive shopping experience. On's official website and online store offers a wide range of products, including running shoes, apparel, and accessories, allowing customers to browse and purchase items conveniently from the comfort of their homes.
The website is designed with user-friendly navigation, detailed product descriptions, and high-quality imagery to enhance the online shopping experience and drive conversion rates. Consumers can also shop last season’s collections and pre-owned gear at a discount, reducing waste and enabling the brand to stretch margins even further.
Omnichannel Integration
On has implemented an omnichannel strategy that seamlessly integrates its online and offline retail channels. Customers can purchase products online and pick them up in-store, providing flexibility and convenience; additionally, On leverages its online platform to showcase new product launches, exclusive collections, and limited-edition releases, driving excitement and engagement among its customer base.
Personalized Shopping Experience
On leverages data analytics and customer insights to deliver personalized shopping experiences to its online customers. On tailors product recommendations, promotions, and marketing campaigns to individual preferences and interests by analyzing browsing behavior, purchase history, and demographic information. This personalized approach enhances customer satisfaction and increases conversion rates and average order value.
Seamless Order Fulfillment and Logistics
On prioritizes efficient order fulfillment and logistics to ensure timely delivery of products to customers. The brand has established partnerships with reliable shipping carriers and fulfillment centers to streamline the fulfillment process and minimize shipping times. Additionally, On provides order tracking and status updates to customers, keeping them informed throughout the delivery process and enhancing overall satisfaction.
Customer Engagement and Support
On engages with customers through various online channels, including social media, email marketing, and live chat support. The brand utilizes social media platforms such as Instagram, Facebook, and Twitter to share product updates, training tips, and inspirational content, fostering community engagement and brand loyalty. Furthermore, On provides responsive customer support via email and live chat, addressing inquiries and resolving issues promptly to ensure a positive shopping experience for customers.
By leveraging e-commerce channels for growth, On has expanded its reach, increased sales, and enhanced customer satisfaction in the competitive online retail landscape.
Branding and Marketing: Crafting a Compelling Brand Narrative
At the heart of On's rapid rise lies its ability to craft a compelling brand narrative that resonates with athletes and enthusiasts worldwide. From the brand's inception to its present-day prominence, we explore how On has masterfully shaped its identity, leveraging a combination of endorsements, community engagement, and social media prowess to forge deep connections with its audience.
Crafting a Compelling Brand Narrative: On's Marketing Strategies
At the heart of On's success lies its compelling brand narrative, meticulously crafted through strategic marketing initiatives. From day one, On has positioned itself as a brand that transcends traditional athletic footwear, embodying a lifestyle centered around performance, innovation, and freedom. The brand’s communities, Right to Run (an initiative enabling access to running) and On Athletics Club (the brand’s elite track club), help audiences visualize the story. Through targeted marketing campaigns and storytelling, On has successfully connected with consumers on a deeper level, resonating with their aspirations and values.
Right to Run by On
From Endorsements to Community Engagement: Building Brand Loyalty
Endorsements from elite athletes have been a cornerstone of On's marketing strategy, lending credibility and authenticity to the brand. By partnering with renowned athletes who embody the spirit of On, the brand has been able to showcase the performance and quality of its products on a global stage. Most notable is the brand’s partnership with tennis star, investor and later, On poster boy Roger Federer. The brand has also been featured in popular publications, including Hypebeast and HIGH SNOBRIETY, and has several fashion collaborations like LOEWE, POST ARCHIVE FACTION (PAF), and Bang & Olufsen collections.
Additionally, On has fostered a strong sense of community among its customers, engaging them through events, social media, and online platforms, thus cultivating brand loyalty and advocacy.
LOEWE x On—the Cloudtilt campaign
Social Media and Influencer Marketing: Amplifying On's Reach
Social media and influencer marketing have become powerful tools for brands to amplify their reach and engage with consumers. On has capitalized on this strategy by leveraging social media platforms and partnering with influencers, part of On’s Ambassador program, who align with its brand values. These influencers push out regular content for the brand on their own channels, extending their reach even further. Through strategic collaborations and engaging content, On has reached new audiences and strengthened its connection with existing customers, driving brand awareness and affinity.
Lessons in Success
In unraveling On's success story, it becomes clear that success wasn't just a matter of timing but strategic decisions, tireless innovation, and dedication. With wholesale distribution, a compelling brand narrative, and digital marketing, On has cemented itself as a trailblazer in athletic footwear. On's success story is a valuable lesson for aspiring entrepreneurs and established brands as they continue to grow.
Written by Olivia Hoskin
Photo credits On
