On Running: How a Swiss challenger brand became a global sportswear contender

Introduction

The sportswear industry is one of the most competitive markets globally. Established giants like Nike, Adidas, Puma, and Asics dominate, spending billions annually on marketing, sponsorships, and product innovation. New entrants typically struggle to gain traction, often relying on niche customer bases or discount-driven sales to survive.

Yet, On Running, a Swiss-born company founded in 2010, has rewritten the rules.

From a small startup focused on engineering-led performance footwear, On Running has evolved into a global powerhouse, securing significant market share while gaining credibility in both performance and lifestyle categories. The company’s rapid growth, which led to a $746 million IPO on the New York Stock Exchange in 2021, is a testament to its ability to disrupt the industry through innovation, strategic partnerships, and a direct-to-consumer (DTC) model that prioritizes premium pricing.

At Athfluence, we admire brands that succeed by being strategic, adaptable, and bold. On Running has managed to position itself not only as an innovative performance brand but also as a fashion-forward and culture-driven company, appealing to elite athletes, amateur runners, and lifestyle consumers alike.

This article will explore how On Running gained market share and credibility in a crowded industry, breaking down its strategy, product innovation, partnerships, and financial performance.

The Origins of On Running

On Running’s story begins with Olivier Bernhard, a former professional Swiss triathlete. Bernhard was obsessed with running efficiency and believed the industry was too focused on either cushioning or speed, with no middle ground.

His vision? A running shoe that combined soft landings with a powerful takeoff—a blend that would create a sensation of "running on clouds." He teamed up with Swiss entrepreneurs David Allemann and Caspar Coppetti, and together they launched On Running in 2010, based on their proprietary CloudTec® technology.

What Makes CloudTec® Different?

At the heart of On Running’s success is CloudTec®, a cushioning system that revolutionized running shoes. Unlike traditional midsoles, which use a uniform foam structure, CloudTec® incorporates individual hollow pods (“clouds”) that compress upon landing and then spring back for propulsion.

This technology offered:

1. A Unique Feel – The soft landing and firm push-off differentiated On Running from traditional EVA foam-based running shoes.

2. Injury Reduction – The segmented cushioning absorbed impact forces more effectively, reducing stress on joints.

3. A Distinct Look – CloudTec® gave On Running shoes a visually striking aesthetic, making them stand out in stores and online.

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From day one, On Running positioned itself as a premium innovation brand, avoiding the discount-heavy approach of some competitors. Instead of flooding the market with mass-produced shoes, the company emphasized precision engineering and Swiss craftsmanship, immediately establishing itself as an elite performance brand.

Breaking Through in a Competitive Market

The global running shoe market is fiercely competitive, with dominant players investing billions in R&D and marketing. Despite this, On Running carved out a strong market position through a combination of innovation, branding, strategic distribution, and partnerships.

1. Product Innovation as a Differentiator

From its inception, On Running has prioritized technology and engineering-led product design over hype-driven marketing.

• CloudTec® cushioning – This gave On Running a unique performance USP, backed by scientific testing and athlete testimonials.

• Helion™ Superfoam – A lightweight yet durable foam that delivers both cushioning and responsiveness.

• Speedboard® Technology – A plate embedded in the midsole to enhance energy return and propulsion.

• Carbon-Fiber Racing Models – Competing with Nike’s Vaporfly, On Running introduced high-performance racing shoes featuring carbon plates for elite runners.

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By consistently pushing innovation and scientific testing, On Running built credibility in both the running and lifestyle segments.

2. Strategic Athlete & Ambassador Partnerships

Unlike Nike and Adidas, which rely on high-profile endorsements and aggressive sponsorships, On Running has taken a more strategic and selective approach.

The Roger Federer Effect

A defining moment for On Running was the signing of Roger Federer as an investor, ambassador, and product collaborator. The Swiss tennis icon not only invested in the company but also worked closely with On Running to develop The Roger series, including the Roger Pro tennis shoe.

Federer’s global appeal and Swiss heritage aligned perfectly with the brand’s premium, innovation-driven image. His involvement gave On Running instant credibility beyond the running world, helping it break into the high-performance tennis and lifestyle footwear categories.

Focus on Endurance Athletes

While On Running doesn’t sponsor high-profile footballers or basketball players, it has built strong relationships with elite endurance athletes, triathletes, and marathoners, ensuring that its credibility remains rooted in performance.

By focusing on niche but highly influential athletes, On Running strengthened its presence among serious runners while maintaining a more exclusive brand identity.

3. Direct-to-Consumer (DTC) Model & Premium Pricing

Unlike competitors that rely heavily on retail chains and wholesale distribution, On Running has emphasized direct-to-consumer (DTC) sales through its website and flagship stores.

Key benefits of this strategy:

• Higher Margins – DTC sales offer greater profit retention than wholesale channels.

• Customer Data & Personalization – On Running can collect user data to refine marketing, product recommendations, and loyalty programs.

• Premium Brand Perception – Unlike discount-heavy competitors, On Running rarely marks down prices, reinforcing its premium, high-performance image.
  

This selective distribution strategy has allowed On Running to retain control over brand storytelling, pricing, and customer experience.

4. Expanding Beyond Running

Initially, On Running was a pure running shoe brand. However, recognizing growth opportunities in adjacent categories, it strategically expanded into:

• Hiking & Outdoor Footwear – The launch of the Cloudrock series targeted outdoor enthusiasts and adventure athletes.

• Lifestyle & Casual Wear – The success of The Roger series and Cloudnova proved On Running’s ability to capture non-runners who value design and comfort.

• High-Performance Apparel – The brand now offers performance apparel, positioning itself as a full-scale sportswear company rather than just a footwear brand.
  

This diversification has expanded On Running’s addressable market without diluting its core identity.

Brand Loyalty, Community Engagement & Sustainability

1. Cultivating a Loyal Community

On Running has built a loyal customer base through:

• Running clubs & ambassador programs – These grassroots efforts create brand advocacy at the community level.

• Experiential events – Customers can test products at pop-up activations, increasing engagement.

• Direct engagement – The brand leverages social media and personalized email marketing to strengthen its community.
  

2. Sustainability Initiatives

With consumer demand for eco-friendly products rising, On Running has positioned itself as an environmentally responsible brand:

• Cyclon Program – A fully recyclable running shoe subscription model, emphasizing circular production.

• Carbon-neutral commitments – On Running aims to reduce its carbon footprint through sustainable sourcing and production.

Sustainability plays a key role in attracting younger, purpose-driven consumers who value environmental responsibility.

Financial Performance & Market Growth

On Running’s financial trajectory reflects its rapid growth and market penetration:

• 2021 IPO: Raised $746 million on the NYSE, signaling strong investor confidence.

• 2022 Revenue: Surpassed $1.2 billion, a 69% year-over-year increase.

• 2023 Growth: Expanded aggressively in North America, Europe, and Asia, strengthening its global footprint.
  

Projected to surpass $2 billion in sales by 2025, On Running is now a serious competitor to legacy sportswear brands.

Key Takeaways: Lessons from On Running

1. Innovate Relentlessly – Disrupt industries through technology-driven differentiation.

2. Be Selective with Partnerships – Focus on credibility over mass-market visibility.

3. Leverage DTC & Premium Pricing – Control branding, pricing, and customer experience.

4. Expand Strategically – Diversify while maintaining brand authenticity.

5. Engage the Community – Authentic engagement fosters long-term brand loyalty.

   
   

Conclusion

On Running has proven that strategic thinking, innovation, and premium branding can break through even the toughest markets. At Athfluence, we admire challenger brands that push boundaries and redefine their industries. On Running is a perfect example of how market share and credibility can be earned—not through hype, but through substance.