Running on Clouds: The Rise of On
Introduction: From Swiss Alps to Global Streets
Few brands in sportswear have gone from zero to global name recognition as quickly as On. What started in Zürich in 2010 as a radical idea by a former triathlete is now a billion-dollar performance-lifestyle powerhouse, loved by marathoners, fashion editors, and Gen-Z commuters alike.
The journey hasn’t been easy. It’s a story of design audacity, smart partnerships, selective marketing, and calculated risks. More than just another sneaker company, On has reshaped what it means to combine performance engineering with style and cultural relevance.
This is the On story — how it started, where it struggled, how it grew, and why its design philosophy makes it one of the most fascinating sports brands of our time.
1. The Spark: Olivier Bernhard’s Frustration
The story begins with Olivier Bernhard, a Swiss professional triathlete and Ironman competitor. Like most elite athletes, Bernhard was obsessive about gear. Shoes were his lifeline — and his frustration.
- Maximum cushioning often meant clunky, heavy builds.
- Lightweight speed shoes often punished the joints with harsh landings.
Bernhard envisioned something different: a shoe that could provide soft landings and explosive take-offs. Working with a Swiss engineer, he started tinkering with prototypes. They cut up pieces of garden hose and glued them to the soles of shoes. Odd as it looked, the early test runs felt promising.
By 2010, Bernhard teamed up with two friends — David Allemann (ex-McKinsey, branding expertise) and Caspar Coppetti (marketer with a knack for scaling ideas). Together, they launched On.
Their guiding principle was bold but clear: run on clouds.
2. The Breakthrough: CloudTec®
The defining feature of On is its CloudTec® sole design — the visible pods (or “clouds”) under the shoe.
- On landing, the hollow pods compress, absorbing vertical impact.
- On push-off, they firm up into a solid platform, giving a springy, horizontal drive forward.
The result? A uniquely light, cushioned, yet responsive ride. Just as important: the sole’s distinctive look made On instantly recognizable at a glance.
3. Early Growth: Running Stores and Athletes
Launching a shoe company in a market dominated by Nike, Adidas, Asics, and New Balance seemed like madness. But On was smart in how it entered.
Instead of blasting into big-box stores, On targeted specialty running retailers. These were trusted by serious runners — the exact audience who would give a new performance shoe credibility.
In 2012, Nicola Spirig won Olympic gold in triathlon wearing On, cementing the brand’s legitimacy. From there, momentum built steadily.
4. Scaling the Brand
By the mid-2010s, On expanded across three fronts:
- Product lines – racing shoes → everyday trainers → trail shoes → lifestyle sneakers.
- Distribution – premium positioning via selective wholesale partners + growing D2C.
- Global footprint – Europe → North America → Asia-Pacific.
By 2018, On was generating more than CHF 200 million in revenue.
📊 Visual 1: Revenue Growth (2018–2023)
On’s revenues grew from ~CHF 212 million in 2018 to over CHF 1.7 billion in 2023.
5. Federer Enters the Picture
The real inflection point came in 2019, when Roger Federer invested in On and became its global ambassador.
- He refined tennis-inspired lifestyle shoes like The Roger.
- Opened doors to new audiences beyond hardcore runners.
- Infused prestige — Federer’s elegance matched On’s sleek, minimalist aesthetic.
6. IPO and Billion-Dollar Leap
In 2021, On went public on the New York Stock Exchange (NYSE), valued at $11 billion. By 2022, annual revenues surpassed CHF 1 billion. In 2023, sales surged another 50% year-over-year.
📊 Visual 2: Key Milestones Timeline
2010 – Founded | 2012 – Olympic Gold | 2019 – Federer Partnership | 2021 – IPO | 2023 – Billion+ Revenue
7. The Struggles Behind the Success
- Profitability pressures from R&D and retail investments.
- Complex supply chain for CloudTec tooling.
- Balancing lifestyle expansion with performance authenticity.
- Heavy competition from Nike, Adidas, Hoka, New Balance.
8. Marketing Tactics: Selective, Smart, Subtle
- Selective retail partners (no heavy discounting).
- Minimalist Swiss design with visible tech.
- Community-driven marketing (clubs, ambassadors).
- Storytelling around “running on clouds,” not just specs.
9. Design Philosophy: Swiss Precision Meets Lifestyle Cool
At the core of On’s brand is a design philosophy that blends:
- Swiss engineering – precision and durability.
- Visible technology – CloudTec as both function and signature.
- Hybrid purpose – shoes for both running and everyday life.
- Sustainability – recycled uppers, spray-on shoe experiments.
10. Lessons from On
- Solve a real pain point — CloudTec fixed the landing/push-off dilemma.
- Build credibility first — specialty stores validated On before mass scaling.
- Design as differentiation — instantly recognizable silhouette.
- Strategic ambassadors matter — Federer was right for the DNA.
- Stay premium — no discount wars.
- Think lifestyle, not just sport — fit all parts of modern life.
- Expand carefully — stepwise growth protected identity.
11. The Road Ahead
Looking forward, On has bold ambitions:
- Targeting CHF 3.5 billion in sales by 2026.
- Expanding retail in North America and Asia.
- Moving deeper into training, tennis, and apparel.
- Positioning itself as a premium global lifestyle brand.
The risks are real — overextension, competition, and cost pressures — but if On keeps innovating while staying true to its Swiss roots, it could be the next great sportswear giant.
Conclusion: More Than Just Shoes
On’s story proves that even in an industry dominated by giants, there’s room for new players — if they’re bold enough to rethink the fundamentals.
From a garden-hose prototype to a global IPO, from triathletes to fashion editors, On has made one thing clear: when you run on clouds, you can aim sky-high.
✦ Published on the Monday High Blog ✦
Explore more stories at www.mondayhigh.com
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