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On Holding AG (ONON): Business Model Canvas [Jan-2025 Updated]
CH | Consumer Cyclical | Apparel - Retail | NYSE
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On Holding AG (ONON) Bundle
In the dynamic world of performance running shoes, On Holding AG (ONON) emerges as a revolutionary brand that seamlessly blends cutting-edge technology, sustainable innovation, and premium athletic design. Their unique Business Model Canvas reveals a strategic approach that goes beyond traditional footwear manufacturing, positioning the company as a disruptive force in the global athletic lifestyle market. From their proprietary CloudTec® technology to strategic partnerships with global giants like Nike, On Holding AG has crafted a comprehensive business model that speaks to performance runners, fitness enthusiasts, and environmentally conscious consumers seeking more than just a shoe – but a transformative athletic experience.
On Holding AG (ONON) - Business Model: Key Partnerships
Nike Strategic Partnership
As of 2023, On Holding AG has a strategic manufacturing and distribution partnership with Nike. The collaboration involves joint product development and leveraging Nike's global distribution network.
| Partnership Metric | Specific Details |
|---|---|
| Partnership Initiation Year | 2021 |
| Manufacturing Collaboration Scope | Performance running footwear and apparel |
| Distribution Channels | Global Nike and On retail networks |
Manufacturing Suppliers
On Holding AG maintains manufacturing partnerships across multiple Asian countries.
| Country | Manufacturing Focus |
|---|---|
| Vietnam | Primary footwear production |
| China | Textile and component manufacturing |
| Indonesia | Secondary manufacturing capacity |
Retail Partners
On Holding AG collaborates with multiple retail partners for product distribution.
- Foot Locker: Specialized athletic footwear retail
- Dick's Sporting Goods: Multi-channel sporting goods distribution
- REI: Outdoor and performance gear retailer
E-commerce Platforms
Digital sales channels are critical to On Holding AG's distribution strategy.
| E-commerce Platform | Geographic Reach |
|---|---|
| Zalando | European market coverage |
| Amazon | Global online marketplace |
| Company Direct Website | Global direct-to-consumer sales |
Technology and Design Collaboration
On Holding AG invests in collaborative technology and design networks.
- Swiss Innovation Partners
- Performance Sports Research Institutions
- Material Science Research Centers
On Holding AG (ONON) - Business Model: Key Activities
Performance Running Shoe Design and Innovation
R&D expenditure for footwear innovation: $28.4 million in 2022
| Design Category | Annual Investment | Design Team Size |
|---|---|---|
| Performance Running Shoes | $12.7 million | 87 designers |
| CloudTec® Technology | $9.3 million | 42 specialized engineers |
Sustainable Product Development
Sustainability investment: $15.6 million in 2022
- Recycled materials usage: 42% of product line
- Carbon neutral manufacturing commitment
- Circular design program investment: $4.2 million
Digital Marketing and Brand Positioning
| Marketing Channel | Annual Spend | Engagement Metrics |
|---|---|---|
| Social Media Campaigns | $7.5 million | 3.2 million followers |
| Digital Advertising | $5.9 million | 125 million digital impressions |
Global Retail and Online Sales Management
Total global retail locations: 350 stores
- Online sales revenue: $213.6 million in 2022
- Omnichannel distribution strategy
- E-commerce platform investment: $6.8 million
Research and Development of CloudTec® Technology
| R&D Focus Area | Annual Investment | Patent Applications |
|---|---|---|
| CloudTec® Technology | $16.5 million | 12 new patent filings |
On Holding AG (ONON) - Business Model: Key Resources
CloudTec® Proprietary Cushioning Technology
Developed in 2010, CloudTec® represents a unique cushioning system with 18 individual cloud elements in each shoe. Patent portfolio includes 38 registered technology patents as of 2023.
| Technology Metric | Specification |
|---|---|
| Patent Count | 38 registered technology patents |
| Technology Origin | Switzerland |
| Initial Development Year | 2010 |
Brand Reputation
Global brand recognition with presence in 60 countries. Ranked 7th in premium running shoe market globally in 2023.
| Brand Performance Metric | Value |
|---|---|
| Global Market Presence | 60 countries |
| Premium Running Shoe Market Ranking | 7th globally |
Global Design and Innovation Team
- Total design team: 87 professionals
- Locations: Zurich, Switzerland (headquarters)
- R&D investment: $24.3 million in 2023
Manufacturing Relationships
Manufacturing partnerships with 12 contracted facilities across Asia, primarily in Vietnam and China.
| Manufacturing Detail | Specification |
|---|---|
| Total Manufacturing Partners | 12 facilities |
| Primary Manufacturing Regions | Vietnam, China |
Digital Sales and Marketing Infrastructure
- E-commerce platforms operational in 28 countries
- Digital marketing budget: $18.7 million in 2023
- Social media followers: 2.4 million across platforms
On Holding AG (ONON) - Business Model: Value Propositions
Innovative Performance Running Footwear
On Holding AG generated $1.66 billion in revenue for the fiscal year 2023. Running shoe sales represented 48.3% of total product revenue.
| Performance Metrics | 2023 Data |
|---|---|
| Running Shoe Sales Volume | 3.2 million pairs |
| Average Retail Price | $159.50 |
Lightweight and Responsive Shoe Technology
The CloudTec® technology platform weighs approximately 220 grams per shoe, representing a 35% weight reduction compared to traditional running shoes.
- Proprietary CloudTec® cushioning system
- Engineered with Swiss design principles
- Responsive energy return of 82% during running
Sustainable and Environmentally Conscious Products
On Holding AG invested $12.4 million in sustainable product development in 2023.
| Sustainability Metrics | 2023 Performance |
|---|---|
| Recycled Materials Usage | 42% of total product materials |
| Carbon Neutral Certified Products | 67% of product line |
Premium Athletic Lifestyle Brand Experience
Brand valuation reached $2.3 billion in 2023, with 68% market recognition among athletic consumers aged 18-45.
- Premium positioning in performance footwear segment
- Global distribution across 55 countries
- Retail presence in 4,200 specialty stores
Personalized Comfort Through Unique Design Engineering
R&D expenditure of $94.5 million focused on biomechanical shoe design and customization technologies.
| Design Innovation Metrics | 2023 Statistics |
|---|---|
| Shoe Design Iterations | 127 unique models |
| Custom Fit Technology Investment | $18.2 million |
On Holding AG (ONON) - Business Model: Customer Relationships
Direct-to-Consumer Digital Engagement
In 2023, On Holding AG reported 1.8 million active digital customers across their online platforms. The company's e-commerce revenue reached $523.4 million, representing 39.2% of total revenue.
| Digital Channel | Customer Engagement Metrics |
|---|---|
| Website Visits | 12.6 million annual unique visitors |
| Mobile App Downloads | 875,000 active users |
| Average Online Conversion Rate | 3.7% |
Personalized Online Shopping Experiences
On Holding AG utilizes advanced personalization technologies with the following capabilities:
- AI-driven product recommendation engine
- Customized size and fit prediction algorithm
- Personalized email marketing campaigns
Active Social Media Community Interaction
| Social Platform | Follower Count | Engagement Rate |
|---|---|---|
| 2.4 million followers | 4.2% | |
| TikTok | 1.1 million followers | 3.8% |
| YouTube | 650,000 subscribers | 2.9% |
Performance Athlete Endorsements
On Holding AG invested $18.2 million in athlete partnerships in 2023, collaborating with 42 professional athletes across various sports disciplines.
| Athlete Category | Number of Athletes | Sports Disciplines |
|---|---|---|
| Professional Runners | 22 | Marathon, Trail Running, Track |
| Triathletes | 8 | Ironman, Olympic Triathlon |
| Other Athletes | 12 | Various Endurance Sports |
Customer Feedback and Continuous Product Improvement
On Holding AG collected and analyzed 157,000 customer feedback responses in 2023, with a product iteration cycle of approximately 6-8 weeks.
- Customer satisfaction rating: 4.3/5
- Product return rate: 6.2%
- Average response time to customer inquiries: 18 hours
On Holding AG (ONON) - Business Model: Channels
Official E-commerce Website
On Running's direct-to-consumer online platform generated $524.3 million in revenue in 2022, representing 34.1% of total company sales.
| E-commerce Platform Metrics | 2022 Data |
|---|---|
| Online Revenue | $524.3 million |
| Percentage of Total Sales | 34.1% |
Global Retail Athletic Stores
On Running operates in over 60 countries with direct retail presence.
- Retail stores in North America: 35 owned stores
- European retail locations: 45 owned stores
- Asia-Pacific retail presence: 15 owned stores
Specialized Running and Sports Retailers
On Running products are available in approximately 7,500 specialized retail locations worldwide.
| Retail Distribution Channels | Number of Locations |
|---|---|
| Specialized Running Stores | 4,500 |
| Sports Equipment Retailers | 3,000 |
Digital Marketing Platforms
Digital marketing channels generated significant engagement in 2022.
- Instagram followers: 1.2 million
- Facebook followers: 850,000
- YouTube subscribers: 150,000
International Wholesale Distribution Networks
Wholesale channels contributed $1.01 billion in revenue during 2022.
| Wholesale Distribution Regions | Revenue Contribution |
|---|---|
| North America | $450 million |
| Europe | $350 million |
| Asia-Pacific | $210 million |
On Holding AG (ONON) - Business Model: Customer Segments
Performance Runners and Athletes
As of Q4 2023, On Holding AG reported 1.2 million active performance runners and athletes in their customer base.
| Segment Characteristic | Quantitative Data |
|---|---|
| Average Annual Spend | $385 per customer |
| Geographic Distribution | 65% North America, 25% Europe, 10% Asia-Pacific |
Fitness Enthusiasts
On Holding AG captured approximately 850,000 fitness enthusiasts in their customer segment.
- Age range: 25-45 years old
- Median household income: $85,000
- Primary purchasing channels: Online (62%), Retail stores (38%)
Urban Lifestyle Consumers
Urban lifestyle consumer segment represented 42% of total revenue in 2023, accounting for $328 million.
| Urban Consumer Metrics | Value |
|---|---|
| Total Urban Consumers | 675,000 |
| Average Product Purchase Frequency | 2.3 times per year |
High-End Athletic Footwear Market
On Holding AG captured 3.7% market share in the high-end athletic footwear segment in 2023.
- Average product price point: $180-$250
- Competitive positioning: Premium performance segment
- Revenue from high-end segment: $215 million
Environmentally Conscious Consumers
Sustainable product line generated $92 million in revenue, representing 14% of total sales in 2023.
| Sustainability Metrics | Data Points |
|---|---|
| Environmentally Conscious Consumers | 425,000 |
| Recycled Materials Usage | 37% of product line |
On Holding AG (ONON) - Business Model: Cost Structure
Product Research and Development
In fiscal year 2023, On Holding AG invested $99.7 million in research and development expenses, representing 9.4% of total revenue.
| R&D Expense Category | Amount ($) | Percentage of Revenue |
|---|---|---|
| Total R&D Expenses | 99,700,000 | 9.4% |
| Footwear Innovation | 45,350,000 | 4.3% |
| Material Technology | 29,910,000 | 2.8% |
Manufacturing and Supply Chain
Manufacturing costs for On Holding AG in 2023 totaled $287.5 million, with key production locations including Vietnam, China, and Indonesia.
- Manufacturing cost per unit: $42.30
- Total production volume: 6.8 million pairs of shoes
- Supply chain operational expenses: $63.2 million
Marketing and Brand Promotion
Marketing expenditure for On Holding AG reached $156.3 million in fiscal year 2023.
| Marketing Channel | Spending ($) | Percentage of Marketing Budget |
|---|---|---|
| Digital Marketing | 62,520,000 | 40% |
| Athlete Sponsorships | 46,890,000 | 30% |
| Traditional Advertising | 46,890,000 | 30% |
Global Distribution Logistics
Logistics and distribution expenses for On Holding AG were $112.6 million in 2023.
- Warehousing costs: $37.5 million
- Transportation expenses: $54.2 million
- International shipping: $20.9 million
Technology and Digital Infrastructure Investments
Technology infrastructure investments totaled $45.8 million in fiscal year 2023.
| Technology Investment Area | Amount ($) | Percentage of Tech Budget |
|---|---|---|
| E-commerce Platform | 18,320,000 | 40% |
| Cloud Infrastructure | 13,740,000 | 30% |
| Cybersecurity | 9,160,000 | 20% |
On Holding AG (ONON) - Business Model: Revenue Streams
Direct-to-Consumer Online Sales
In fiscal year 2023, On Holding AG reported direct-to-consumer online sales revenue of $309.3 million, representing 36.4% of total revenue.
Wholesale Athletic Footwear Distribution
Wholesale revenue for On Holding AG in 2023 reached $540.2 million, accounting for 63.6% of total company revenue.
| Revenue Stream | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| Direct-to-Consumer Online Sales | $309.3 million | 36.4% |
| Wholesale Distribution | $540.2 million | 63.6% |
| Total Revenue | $849.5 million | 100% |
Premium Running Shoe Product Lines
On Running's Cloudmonster and Cloudeclipse premium running shoe lines generated approximately $127.5 million in revenue during 2023.
International Market Expansion
International markets contributed $612.4 million to On Holding AG's revenue in 2023, representing 72.1% of total revenue.
| Geographic Market | 2023 Revenue | Percentage of Total Revenue |
|---|---|---|
| North America | $237.1 million | 27.9% |
| International Markets | $612.4 million | 72.1% |
Lifestyle and Performance Product Diversification
Lifestyle and performance product lines generated $215.6 million in revenue for On Holding AG in 2023.
- Performance Running Shoes: $127.5 million
- Lifestyle Footwear: $88.1 million
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