On's co-founder identifies a societal shift from a "leisure class," focused on owning things, to a "movement class" that prioritizes experiences, vitality, and health. This change created a new market for brands like On that align with these modern values.
On strategically positions itself as a premium brand by investing heavily in innovation to justify its price, aiming to give everyone a better experience. This is contrasted with luxury brands that create value through exclusivity and limiting access.
Instead of paying Roger Federer a traditional endorsement fee, On's founders proposed he become an investor and co-entrepreneur. This unconventional approach created a deeper, more authentic partnership and aligned long-term incentives for both the brand and the star athlete.
A young designer's idea to spray a shoe upper, inspired by a YouTube video of someone using a hot glue gun, was taken seriously by leadership. By embracing this "crazy" idea and resourcing a small team, On developed a revolutionary manufacturing process, proving the value of nurturing unconventional inspiration.
On's leadership operates as a partnership, allowing some founders to focus on core operations and supply chain (the "humming machine"). This frees up other partners to dedicate their bandwidth to creating future growth engines like apparel, retail, and new sports categories.
On's rapid growth was built over 16 years, with new initiatives like retail stores being 4-5 years in the making before showing major results. This mindset highlights the need for a strong, patient execution engine to support long-term bets rather than chasing short-term wins.