For over a decade, Switzerland has been home to a brand that has redefined innovation—not in luxury watches, cosmetics, or pharmaceuticals, but in athletic footwear. On Holdings, a company specializing in running shoes, has gained global recognition for its unique CloudTec technology. This cutting-edge shock absorption system provides exceptional comfort and performance, appealing to both amateur and professional runners.

In a short span, On Holdings has established collaborations with renowned athletes like Roger Federer. These partnerships have significantly boosted the brand's visibility, solidifying its image as a high-performance label. The company also emphasizes sustainable practices, utilizing recycled materials at a time when sportswear companies face mounting criticism for their environmental impact.

One investor described On as "the Apple of running," a sentiment shared in an interview with Bloomberg, highlighting the brand's innovative ethos.

On Holdings capitalized on a market gap when major players like Nike and Adidas shifted focus toward mainstream consumers and fashion-oriented products. This pivot left room for new players to emerge, such as On, founded in 2010 by David Allemann, Olivier Bernhard, and Caspar Coppetti. United by their passion for running, the trio laid the groundwork for the company.

The timing was fortuitous. Over the past three years, the running shoe market has grown by 20%, reaching $7.4 billion, according to Circana LLC. While only 43% of buyers use these shoes exclusively for exercise, their minimalist yet distinctive style resonates with a broader audience. A BTIG study projects continued growth in the running shoe market, with consumers undeterred by premium prices. On shoes start at €150, with specialized models reaching €200.

Currently holding a 2% share of the global athletic footwear market, On Holdings reported sales of $2.5 billion last year, growing annually by 30%. Despite its growth, the company is not fixated on surpassing Nike or Adidas, whose annual revenues stand at $50 billion and $25 billion, respectively.

Instead, On is focused on sustaining its growth while maintaining credibility among athletes. A recent campaign featuring acclaimed actress Zendaya exemplifies this strategy.

Olivier Bernhard, a former triathlete, brought a wealth of experience to the brand. Having competed in events like the Ironman in Hawaii and New Zealand during the 1990s and 2000s, Bernhard was sponsored by both Adidas and Nike. His participation in these demanding events—featuring 3.8 km of swimming, 180 km of cycling, and a 42.2 km marathon—reflects the high-performance ethos embedded in On’s DNA.

On’s co-CEO Marc Maurer acknowledged in a Bloomberg interview that the journey ahead will include both challenges and triumphs. "There are always ups and downs, cycles of innovation and difficulties," he remarked, adding that if these efforts lead to surpassing Nike or Adidas in scale, "that would be fantastic."