The business model of On.

The Swiss brand that's winning the circular fashion game.

Whether you are a seasoned athlete playing tennis or a casual jogger, you have most likely been trying to find the right shoe to achieve your goals. That's where On comes in - the Swiss brand that has been revolutionizing the industry since its launch in 2010. 

Running on clouds.

On makes sustainable high-performance running shoes and sports apparel using the latest technology from their lab in Switzerland. Their commitment to circularity, fossil-free products, and innovative partnerships makes them a real front-runner #punindented in their industry. 

Their story starts with Olivier Bernhard, a former Swiss Ironman champion. He had been searching for a shoe with the perfect running-on-clouds sensation for his entire career. He partnered with David Allemann and Caspar Coppetti to design a shoe that would deliver both comfort and performance. With their patented CloudTec® technology and sustainable elements, they created sharp-looking sports shoes with a cloud-like sole and the rest is history.

Let's take a look at their business model and see why they are so successful.

Circular by design.

On running shoes are stylish, lightweight, and designed to create the ultimate running experience for athletes of all levels. The Swiss company uses their cutting-edge technology to create a cushioned landing and a firm take-off. A winning combination if you want to crush your personal record time and time again. 

But that's not all. On is committed to sustainability, and they are not just paying lip service to the cause. Their Cloudneo subscription service offers a full-fledged circular business model. It ensures that athletes always have the latest gear available, with a new pair of 100% recyclable shoes shipped every 6 months. 100% recyclable shoes? That's right, their Cyclon-T models are made of castor beans. So you return your old school shoes. On recycles and reuses them again. 

Powerful partnerships.

On has partnered with some of the most innovative companies in biochemicals, production processes, and material innovation to make sure their products are fossil-free and designed for circularity. The CleanCloud project is a shining example of this, using foam cushioning made from processed carbon emissions caught by partner company LanzaTech.

Next to this, On has collaborated with several remarkable athletes over the years, each contributing to the brand's success in their unique way. Where traditional sport brands work with endorsements, ON showed a different strategy.

Roger that.

Their most influential collaboration is the one with Swiss tennis player Roger Federer, one of the most legendary athletes in history. Federer joined both as a partner and an investor. Together, they developed a range of tennis court shoes that he wore during his last seasons as a professional player.

Thanks to Federer's influence, On’s popularity has skyrocketed around the world. It helps them to make a huge impact with a cleaner footprint. Technological innovation lies at the heart of On, that’s why we are curious to see their next game-changing idea. 

Do you want to go circular?

In our latest playbook we teach you how to start building your future (circular) business, whilst successfully growing the one you have today.

Three things you can learn from On.

  1. A new mindset: forget about traditional production systems. Circular is about making unusual combinations to produce in completely new ways. 

  2. Develop circular skills: Design helps to explore new ways to create sustainable, resilient, long-lasting value in the circular economy. 

  3. Work together: working with the right partners is crucial. Look for those partners that share your vision and can contribute meaningfully to your business model development.