Swiss challenger On is one of those running brands to have rewritten the rules of the premium running market, winning consumers over with a ruthless pursuit of innovation rather than celebrity endorsements alone. On Co-CEO Caspar Coppetti explains how the Zurich-based company is expanding its online, manufacturing and store network.
MAPIC: Tell us about how On has evolved?
Caspar Coppetti: “I think On and Hoka have changed the running shoe product. Our shoe is based on structural foam engineering for absorption and fast push-off and the latest symbol of our disruptive approach is our LightSpray technology [a spray-on upper], which has moved from an elite-athlete showcase to a commercially scalable platform. What we’re doing now in terms of manufacture is on the bleeding edge of technology.”
MAPIC: How has technology changed your global approach?
Caspar Coppetti: “Our main manufacturing is currently in Korea and Vietnam, alongside smaller production facilities in Zurich. But automation for LightSpray means the opportunity to nearshore production, with plans for manufacturing nearer the end user, including in the US and Europe. This also has a strong environmental benefit in terms of shipping product and that should mean faster and more agile supply chains and the ability to manufacture tighter inventory to avoid selling off-price. We always look to protect margins and we don’t have any off-price strategy and we don’t manufacture for outlet.”
MAPIC: What are your plans for concessions and stores?
Caspar Coppetti: “We believe that the leisure class has been followed by the movement class, where people want a mix of experiences, health and self-care. Apparel is growing very fast for us, and in our own stores is rising to 20% to 30% of total sales. Looking at our global markets, in Asia people are becoming far more fitness conscious and they tend to prefer to wear one brand, while in the West people are more likely to be wearing a mix of brands. We’re aiming at On for premium positioning but not to be deliberately part of the luxury sector. We have around 80 stores and are opening at the rate of about 15-20 stores a year in what we consider meaningful locations. In large markets such as New York and Shanghai, that may mean multiple locations.”
