This Shoe Company Hit $3.8 Billion in Sales —Here’s How It Plans to Avoid ‘Pitfalls’ That Battered Allbirds
The Swiss startup is at a critical juncture: How does it stay a brand for serious athletes while also going mainstream?
Swiss shoe company On hit its stride with $3.8 billion in annual sales — now its founders are hoping to avoid tripping over the growth mistakes that face-planted Nike and killed Allbirds.
The company finds itself at a critical juncture: How does it stay a brand for serious athletes while going mainstream? In May, its two founders, David Allemann and Caspar Coppetti, will replace CEO Martin Hoffmann and refocus on innovation. The company just opened a factory in South Korea that produces LightSpray running shoes, where robots mist the upper part onto the sole in minutes, creating shoes that weigh less than half a pound and retail for $330.
On is also beefing up its research team. In 2020, it had 30 workers focused on product development. Now it has more than 550 — about 14 percent of the workforce. The strategy: keep investing in performance technology for elite athletes rather than chasing mass appeal through discounting or flooding stores with mediocre products. “It’s more getting ahead of potential pitfalls that are not here yet,” Allemann told The New York Times.
Swiss shoe company On hit its stride with $3.8 billion in annual sales — now its founders are hoping to avoid tripping over the growth mistakes that face-planted Nike and killed Allbirds.
The company finds itself at a critical juncture: How does it stay a brand for serious athletes while going mainstream? In May, its two founders, David Allemann and Caspar Coppetti, will replace CEO Martin Hoffmann and refocus on innovation. The company just opened a factory in South Korea that produces LightSpray running shoes, where robots mist the upper part onto the sole in minutes, creating shoes that weigh less than half a pound and retail for $330.
On is also beefing up its research team. In 2020, it had 30 workers focused on product development. Now it has more than 550 — about 14 percent of the workforce. The strategy: keep investing in performance technology for elite athletes rather than chasing mass appeal through discounting or flooding stores with mediocre products. “It’s more getting ahead of potential pitfalls that are not here yet,” Allemann told The New York Times.
