How On is taking on Nike and Adidas in the sneaker race

On, a Swiss brand, is rapidly establishing itself as a strong competitor in the sportswear market worldwide. The company, known for its high-priced athletic shoes and clothing, saw its net sales increase by over 40% to 726.6 million Swiss francs (US$869 million) for the three-month period ending on March 31 compared to the previous year.

Industry analysts credit On’s success to its innovative products and timing, enabling it to gain market share from established competitors like Nike and Adidas. Aneesha Sherman, Managing Director at Bernstein, highlighted On’s focus on the aesthetic of its shoes as a key factor in its initial success, noting that their unique silhouettes captured consumers’ attention.

Despite Nike and Adidas still holding a combined 58% of the global market share compared to On’s less than 3%, the Swiss brand has been surpassing both companies in earnings growth in recent quarters. Sherman emphasized that On’s rapid growth was a mix of luck and strategic positioning, particularly in attracting retailers seeking emerging, high-growth brands.

While Nike is implementing a turnaround plan under new CEO Elliott Hill, which could present a challenge to On, the Swiss company also faces uncertainties related to tariffs, like the broader sportswear industry. With about 90% of On’s sneakers manufactured in Vietnam, potential 46% import duties could impact its operations.

To learn more about how On is competing with sportswear rivals and its strategy for dealing with tariffs, watch the video above.