On Running: Swiss Shoes That Are Shaking The Nike Throne

On Running: Swiss Shoes That Are Shaking The Throne Nike & Adidas 🏃🏼

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A footwear brand from Switzerland that is making a spectacle, and is being watched as the "prime challenger" of giants like Nike and Adidas.

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Differential design and premium strategy:

Beautiful, stylish and running like it's on a "cloud."

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The first thing that distinguishes On is the design of the shoe with a "sheer gap under the sole," which is not only beautiful, but also gives a unique impact support, giving it a unique "cloud running" experience.

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PREMIUM MARKET: On chooses to group customers with high purchasing power, with most shoes starting at $150 or more, they are "not interested in making cheap products," or sell them at low-end retailers to maintain the brand image at the top of the market, superior to Nike in some ways, but not a luxury brand.

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Leap growth and giant vibration.

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Soaring non-stop: Since entering the stock exchange in 2021, On's sales have continued to grow, and its share price has visibly surpassed its competitors. Some analysts even say that On only takes 1 / 8 of Nike to reach $1 billion!

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Real challenger: Analysts view On as "Nike's first real competitor" to change the game in the athletic shoe market.

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Nike & Adidas stumbled. While On was growing, Nike experienced a decline in sales in some quarters, which was partly due to a strategy that overemphasized Direct-to-Consumer channels, losing space on the shelves in retail stores. As more consumers returned to shopping at storefronts, Adidas faced several challenges and recently ended its partnership with Kanye West.

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On began to eat up market share. Even On's overall market share was small.

(Less than 3%) But it has increased by 8 times since 2019, during which Hoka has also grown, reflecting changes in consumer trends and retail strategy.

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Chances are right. And On's smart strategy!

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On's success comes not entirely from luck, but from seizing opportunities and strategizing wisely...

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The Covid-19 Range Gold Strokes The growth of On matches the period when more people turn to running and wearing sportswear during the lockdown period, causing sports shoes to become widely used. This is both luck and a perfect strategy.

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The gap from Nike's retreat, Nike's reduced partnerships with major retailers like Macy's and Footlocker, created a gap in the market, which On quickly filled, and retailers were looking for new, fast-growing brands on the shelves.

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Partnerships with celebrities, getting Roger Federer to invest in and design shoes (The Roger), as well as collaborating with Zendaya, FKA Twigs and luxury brands like Loewe, helped grow the customer base and reinforce the premium brand image.

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How can future challenges maintain momentum?

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On is facing significant challenges.

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A U.S. import tariff measure of about 90% of On products are made in Vietnam and Indonesia, which, if the import tariff is hiked, could have a huge impact because the U.S. is the market that makes nearly 60% of On's revenue.

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Supply Chain Challenges Moving the manufacturing base back into the country is very difficult in cost and labor. On may have to push the tax burden on consumers, who believe already have the "power to price."

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Retaliation from rivals Nike is undergoing a strategic adjustment under a new CEO, and Adidas is growing in sales. Having the giant reclaim market share will be a major challenge.

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Innovation and Expansion On is investing in new manufacturing technologies such as Light Technology ™ that can produce shoes in 3 minutes.

(but currently only applies to premium models) and plans to expand its clothing line and further double the number of stores worldwide from 53 locations to 100 locations.

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On Running has achieved outstanding success in creating a stand in the highly competitive sports footwear market, with unique designs, premium brand experiences and smart seizure of business opportunities.

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Despite its small market share, its rapid growth and ripple build-up were undeniable, forcing Nike and Adidas to revisit their own strategies.

# OnRunning # Shoes on # Running shoes # Nike # adidas