In the competitive world of sportswear, it’s rare to see a new player rise to prominence. Yet, Swiss sneaker brand On is defying the odds, challenging industry titans like Nike and Adidas, and redefining what it means to compete in a saturated market. From humble beginnings to becoming a billion-dollar company, On’s story is one of innovation, resilience, and visionary thinking. Here’s a deep dive into its journey and the lessons it offers for aspiring entrepreneurs.

The Origin of On

The story of On begins in Zurich, Switzerland, in 2010, when former professional triathlete Olivier Bernhard decided to solve a problem he had faced throughout his career. A three-time duathlon world champion, Bernhard had spent years testing different running shoes but remained unsatisfied. He wanted a shoe that combined performance, comfort, and an unparalleled running sensation.

Teaming up with his friends, Caspar Coppetti and David Allemann, Bernhard embarked on a mission to reimagine the running shoe. Their breakthrough came in the form of a revolutionary cushioning technology called “CloudTec,” which consists of hollow pods that compress during landing and expand during takeoff, providing a soft yet explosive ride.

The founders initially worked with a small group of engineers and athletes to perfect the design, launching their prototypes in Zurich. It wasn’t long before their innovation caught the attention of both elite runners and casual athletes. By the end of 2010, On’s shoes were available in Swiss stores, and the brand began expanding into other markets.

The founders shared a vision: to create running shoes that did more than perform—they wanted shoes that inspired athletes to enjoy every step of their journey. This emotional connection, paired with cutting-edge technology, became a hallmark of the brand.

Taking on the Giants: On vs. Nike and Adidas

Breaking into the athletic footwear market is no easy task, especially when it’s dominated by giants like Nike and Adidas. However, On managed to find a foothold by focusing on innovation, storytelling, and a premium branding strategy.

1. Technology That Stands Out

At the heart of On’s success is its CloudTec sole technology. While Nike and Adidas rely heavily on flashy marketing and celebrity endorsements, On prioritized the running experience. The unique design of the soles not only differentiated the brand visually but also delivered tangible benefits, earning the trust of serious athletes.

2. Strategic Endorsements and Partnerships

In 2019, tennis legend Roger Federer joined the On team as both an investor and brand ambassador. Federer’s involvement was a game-changer, catapulting the brand into the global spotlight. Beyond just lending his name, Federer actively contributed to product development, co-designing the Roger Pro tennis shoe.

This partnership highlighted On’s commitment to authenticity—Federer’s involvement wasn’t just a marketing stunt; it was a genuine collaboration. This authenticity resonated with fans and further solidified On’s reputation as a serious player in the industry.

3. Sustainability as a Differentiator

Unlike its larger competitors, On has leaned into sustainability as a core part of its identity. From introducing fully recyclable running shoes to using eco-friendly materials, the brand has capitalized on the growing demand for sustainable products.

This commitment to the environment has attracted a loyal customer base of eco-conscious consumers, giving On a competitive edge in an industry where sustainability is often an afterthought.

4. Niche Targeting and Premium Branding

Rather than attempting to compete directly with Nike and Adidas on mass-market appeal, On carved out a niche as a luxury performance brand. By targeting high-income, fitness-focused individuals, On was able to position itself as a premium alternative, offering superior quality at a higher price point.

This strategy not only allowed On to differentiate itself but also helped the company maintain healthy profit margins, even as it scaled globally.

Lessons for Entrepreneurs: Replicating On’s Success

On’s journey offers a masterclass in entrepreneurial strategy, particularly for those looking to challenge established brands. Here are seven lessons from the company’s rise to success:

1. Solve a Real Problem

On wasn’t founded to chase trends—it was born out of a genuine need. Bernhard’s frustration with existing running shoes drove the creation of CloudTec technology. Entrepreneurs should focus on addressing real pain points in their industries to create products that resonate with customers.

2. Innovate, Don’t Imitate

On’s technology wasn’t just different for the sake of being different—it was better. By investing in research and development, the brand created a product that outperformed competitors. Entrepreneurs should prioritize innovation that delivers tangible benefits, rather than simply following industry trends.

3. Build Authentic Partnerships

The partnership with Roger Federer exemplifies how collaborations can elevate a brand. However, what set On apart was the authenticity of the relationship. Entrepreneurs should seek partnerships that align with their values and enhance their credibility.

4. Focus on Quality Over Quantity

Rather than competing on price, On positioned itself as a premium brand. This allowed the company to attract a loyal, high-value customer base. Entrepreneurs should prioritize delivering exceptional quality, even if it means targeting a smaller market initially.

5. Leverage Storytelling

On’s founders didn’t just sell shoes—they sold a vision. Their story of athletic excellence, Swiss engineering, and a passion for running helped create an emotional connection with consumers. Entrepreneurs should craft narratives that inspire and engage their audience.

6. Embrace Sustainability

Today’s consumers expect more than just great products—they want brands that align with their values. On’s commitment to sustainability not only set it apart but also strengthened its brand loyalty. Entrepreneurs should integrate environmental and social responsibility into their business models.

7. Stay Agile and Adaptable

On entered a market dominated by well-established players but succeeded by staying nimble and responsive to consumer needs. Entrepreneurs should embrace flexibility and continuously refine their strategies based on market feedback.

The Road Ahead

From its modest beginnings in Zurich to becoming a $7 billion company, On has proven that even small players can take on industry giants with the right combination of innovation, strategy, and vision.

Looking ahead, On shows no signs of slowing down. The brand continues to expand its product line, incorporating tennis shoes, lifestyle sneakers, and sustainable options. It is also exploring new markets and leveraging its global appeal to strengthen its presence in Asia and North America.

For entrepreneurs, On serves as a beacon of inspiration. Its story is a testament to the power of bold ideas, persistence, and an unwavering commitment to quality. No matter how saturated or competitive an industry may seem, there is always room for innovation—and On is living proof.

So, for those aspiring to disrupt an industry, remember this: it’s not about the size of your brand; it’s about the strength of your vision and the value you bring to the table.

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