In a Zurich laboratory, a robotic leg performs a precise ballet, spinning as an almost imperceptible mist of "flying fibre" constructs a high-performance sports shoe worth £300 at its base. This scene, reminiscent of science fiction, is the cutting-edge reality for Swiss brand On, which is leveraging advanced technology and bold ambition to challenge sportswear titans Nike and Adidas.
From Hose Pipes to a $16bn Giant
The company's origins are rooted in a desire to solve a fundamental athletic problem. Co-founder Olivier Bernhard, a Swiss Ironman world champion, sought a shoe that cushioned the body from running's impact while enhancing speed. His initial prototype involved gluing sections of garden hose pipe to the soles of old trainers. Together with former McKinsey consultants David Allemann and Caspar Coppetti, Bernhard invested roughly £600,000 of personal savings to launch On in 2010.
The trio's innovation quickly found a market. They floated the company on the New York Stock Exchange in 2021 at a valuation of $8bn, raising nearly $750m. Today, the brand is worth a staggering $16bn and expects to sell 30 million pairs of shoes this year. Strategic partnerships have fuelled growth, notably with tennis legend Roger Federer, and fashion collaborations with luxury house LOEWE, actor Zendaya, and musicians FKA twigs and Burna Boy. Sales in China have doubled year-on-year.
The LightSpray Breakthrough and Robotic Future
The brand's technological leap, dubbed LightSpray, was inspired by a chance meeting at a 2019 design fair. A young student, Johannes Voelchert, presented an idea influenced by glue guns used for Halloween decorations. "We said: hey, he’s crazy, but we like that," recalls Allemann. On funded Voelchert for a year, leading to the development of the "flying fibre" process where a single mile-long filament of thermoplastic polyurethane is sprayed to form a shoe's upper in just three minutes.
While most of its footwear is still made in Asian factories, On is pioneering a shift. Its Cloudboom Strike LS laceless shoe, made by just nine robots in Zurich and costing £310, gained fame after Kenyan runner Hellen Obiri won the New York and Boston marathons in them. The company now plans to open its first fully robot-led factory, location undecided but close to a key retail market, with an ultimate goal of production on every continent.
"It has a huge advantage from a sustainability point of view, because you don’t have to ship shoes around the world," Allemann states, noting that LightSpray shoes have a 75% lower CO2 footprint than conventional sports shoes.
Scaling Premium Sportswear in a Competitive Arena
On operates firmly in the premium segment, with prices ranging from about £120 to £495. Despite cost-of-living pressures, sales are projected to surge by over a third this year to nearly 3bn Swiss Francs (£2.8bn). The brand has captured up to a fifth of the running shoe market in the UK and parts of Europe.
Its path is not without obstacles. The company faces a class-action lawsuit in the US over claims its distinctive "CloudTec" shoes produce a "noisy and embarrassing squeak." Furthermore, it remains a relatively small player, controlling just 1% of the $450bn global sportswear market, compared to Nike's 14% and Adidas's 9% share, according to GlobalData.
Undeterred, On continues its retail expansion, with a new store opening in London's Kensington this month, making the capital its largest retail hub with plans for up to seven outlets. Globally, it operates 60 stores, aiming to add 25 per year. Allemann sees these spaces as community hubs, not just shops. "Running and sports... we see consumers are willing to invest in great performance, innovation and better feel, but also in great design," he concludes, betting that physical community and technological innovation will drive the brand's long run.
