Latest / Building Brands with Fexingo: Identity, Reputation, and Long-Term Business Equity / How On Running Turned Performance Into a Brand Identity
Transcript
- Lucas: You ever see a running shoe and know exactly what brand it is before you see the logo? Luna: Yeah — the swoosh obviously, the three stripes. But these days, On Running has that too. Those little hollow pods on the sole are instantly recognisable. Lucas: Exactly. That sole — they call it CloudTec — is basically the brand's visual anchor. And it's remarkable because On wasn't born out of some massive marketing budget. It started in 2010 with a single patent and a question: what if running shoes could feel soft but also responsive? Luna: The founder was a former pro athlete, right? Olivier Bernhard? Lucas: Yeah, a Swiss Ironman champion. He teamed up with two engineers, and they came up with this idea of hollow rubber pods that compress on impact and then lock together for stability. The first shoe looked bizarre — like something from a sci-fi movie. But it worked. And more importantly, it looked like nothing else. Luna: That's the thing — in a market where Nike and Adidas spend billions on design and marketing, a small Swiss startup had to differentiate on pure novelty. The CloudTec sole became a badge. Lucas: Right. And they leaned into it hard. Every single shoe they made featured that sole prominently. It wasn't hidden or painted over. It was the hero. That's a classic brand play — take your one real point of difference and make it the centrepiece of every product, every ad, every retail display. Luna: But novelty wears off. What kept them from being a one-hit wonder? Lucas: They kept iterating on the same visual language. The pods got smaller, the designs got sleeker, but the core idea remained. And then in 2019, they signed Roger Federer — not just as a face, but as a design collaborator. Federer worked with them on a shoe called The Roger, which was more of a lifestyle sneaker. That was a big strategic shift. Luna: Because up to that point, On was very much a performance running brand. Federer brought them into the casual footwear space, but in a way that felt authentic — he's Swiss, he's known for grace and precision, which aligns with On's engineering-focused image. Lucas: Exactly. And they didn't just slap his name on a shoe. He was involved in the design — the shoe had a hidden CloudTec sole with a more subtle look. It was a bridge between performance and lifestyle. That launch opened up a whole new customer base. By 2021, On's revenue had grown to over 700 million Swiss francs, and they went public on the New York Stock Exchange. Luna: So let's talk about the brand equity they built. On is now a premium brand — shoes cost around 140 to 200 dollars. That's higher than most Nike or Adidas running shoes. How do they justify that price? Lucas: Partly through technology, but mostly through perception. They've cultivated this image of Swiss precision and innovation. The packaging is minimalist, the retail stores are sleek, the collaborations are with high-end designers like Loewe. Everything signals that this is a premium product. And they've been very disciplined about not discounting. You rarely see On shoes on sale. Luna: That's a big deal in footwear. Most brands end up in the clearance rack at some point. Maintaining price integrity is hard, especially when you're growing fast. Lucas: It is. And it's a deliberate choice. On's co-founder David Allemann said in an interview that they want the brand to be 'a long-term asset, not a short-term revenue machine.' So they'd rather sell fewer pairs at full price than flood the market with discounts. That builds a different kind of loyalty. Luna: It also creates scarcity. If you see someone wearing On, you know they paid full price. There's a status signal there. Lucas: Right. And that brings us to the risk now. On is growing like crazy — revenue passed one point two billion Swiss francs last year. But as they push into more casual and outdoor categories, they're competing with brands that have much deeper roots in those segments. The question is whether the CloudTec sole can carry the same visual weight on a hiking boot or a tennis shoe as it does on a running shoe. Luna: Honestly, if today was worth a coffee to you, that's the link — buy me a coffee dot com slash fexingo. Lucas: Yeah, this show stays ad-free because of listeners like that. It's a small gesture that keeps us going. Luna: So back to the expansion — On launched a trail running shoe, a hiking boot, even a tennis shoe. All of them feature some version of the CloudTec sole, but on a boot, those pods look more like normal lugs. The visual distinctiveness gets diluted. Lucas: That's the tension. On one hand, you want to extend the brand into new categories. On the other, you risk losing the very thing that made you stand out. I think the key for them will be maintaining that design philosophy — every product should feel like it comes from the same design studio, even if it's not identical. That's what Apple did with the iPhone and the MacBook — different shapes, same sensibility. Luna: And they have the Federer collaboration as a halo. He brings credibility beyond running. But if they start making products that look generic, the brand premium erodes fast. Lucas: Exactly. The brand is still relatively young — just 16 years old. Compare that to Nike, which has been around since 1964. On has built remarkable equity in a short time, but the hard part is sustaining it as you scale. The question is whether they can stay true to that original insight: that a single, bold design choice can define a brand. Luna: And that's a lesson for any business. Find the one thing you do differently, and make it visible. Don't hide it. Lucas: Right. On's CloudTec sole isn't just a technical feature — it's a brand statement. It says we're different, we're Swiss, we're obsessed with performance. And as long as they keep that statement clear, they'll have a shot at staying relevant. Luna: Even if they're not the biggest, they might be the most distinctive. Lucas: And in a world of endless sneaker options, that's a pretty valuable position to hold.