Findings:
Revenue Growth: On achieved a 20% year-over-year revenue increase in Q3 2024, driven by direct-to-consumer sales, geographic expansion (notably in Asia-Pacific), and successful collaborations.
Strategic Collaborations: High-profile partnerships with Loewe, South Korea’s Post Archive Faction (PAF), and Ikon activewear blended performance and style, targeting younger, fashion-forward consumers.
Product Diversification: Beyond running, On expanded into training shoes, lifestyle apparel, and sustainable innovations like the spray-on Cloudboom Strike LS.
Retail Expansion: With plans to open 20 new stores in key cities by 2025, On aims to integrate its apparel and footwear lines into experiential flagship spaces.
Sustainability: Investments in sustainable materials and low-impact production processes align with the values of environmentally-conscious consumers.
Key Takeaway:
On Running’s breakout year demonstrates the power of blending performance innovation, luxury aesthetics, and sustainability, targeting both athletes and Gen Z consumers who prioritize style and environmental impact.
Trend:
Primary Trend: Fusion of performance and lifestyle in premium sportswear.
Sub-Trends:
Gen Z Appeal: Leveraging collaborations and digital campaigns to resonate with younger, style-conscious consumers.
Sustainability: Driving product innovation to reduce environmental impact.
Global Expansion: Capitalizing on growth in markets like Japan and China.
Consumer Motivation:
Younger Demographics:
Seeking functional yet stylish products that transition from gym to street.
Drawn to brand storytelling, exclusivity, and social media campaigns.
Athletes and Fitness Enthusiasts:
Motivated by technical performance and innovation (e.g., spray-on technology).
Eco-Conscious Consumers:
Value brands that prioritize sustainability without compromising quality.
What Is Driving the Trend:
Cultural Shifts:
Gen Z and Millennials are integrating fitness into daily lifestyles, demanding versatile products.
Premiumization of Sportswear:
Consumers willing to pay more for quality, style, and innovation in activewear.
Digital Campaigns and Collaborations:
Partnerships and creative marketing amplify On’s reach and desirability.
Who Are the People Referenced:
Marc Maurer (Co-CEO): Focused on blending performance and lifestyle for sustained growth.
Collaborators:
Zendaya: Ambassador during “Challengers” press tour.
Loewe: Long-term luxury collaboration.
Post Archive Faction: Avant-garde partnership targeting cultural relevance.
Description of Consumers, Products, or Services:
Consumers:
Gen Z and Millennials, valuing style, sustainability, and performance.
Global athletes and fitness enthusiasts.
Products: Premium footwear (e.g., Cloud Pulse), lifestyle apparel (e.g., Ikon collection), and sustainable innovations.
Services: Experiential retail spaces integrating brand storytelling and product discovery.
Conclusions:
On Running’s ability to merge luxury, innovation, and sustainability positions it as a leader in premium sportswear, effectively appealing to younger, style-conscious demographics and expanding into global markets.
Implications:
For Brands:
Blending Style and Function: Collaborations with high-profile brands and influencers resonate with aspirational consumers.
Innovation as Differentiator: Cutting-edge products like spray-on shoes strengthen brand equity.
Sustainability Commitment: Investing in eco-friendly production aligns with consumer expectations.
For Society:
Redefining Sportswear: Elevates sportswear into everyday, fashion-forward use cases.
Sustainable Consumption: Encourages environmentally-conscious purchasing habits.
For Consumers:
Access to stylish, sustainable, and high-performance products catering to diverse needs.
For the Future:
Continued focus on global expansion, experiential retail, and sustainability innovation.
Consumer Trend:
Luxury-Activewear Fusion: Merging athletic performance with high-fashion aesthetics.
Consumer Sub-Trend:
Sustainability-Driven Innovation: Combining environmental impact reduction with cutting-edge technology.
Big Social Trend:
Athleisure as Lifestyle: Activewear becomes central to daily fashion and identity.
Local Trend:
Growth in Japan and China, driven by demand for premium and culturally relevant products.
Worldwide Social Trend:
Global embrace of sustainable, multifunctional sportswear.
Name of the Big Trend Implied:
"Performance Meets Luxury in Sportswear."
Name of the Big Social Trend Implied:
"Eco-Stylish Active Living."
Social Drive:
Consumer desire for versatile, high-quality products that align with personal values of performance, style, and sustainability.
Learnings for Companies to Use in 2025:
Target Gen Z and Millennials: Use digital-first campaigns and collaborations to engage younger audiences.
Invest in Sustainability: Prioritize low-carbon innovations and transparency in production.
Expand Global Reach: Focus on Asia-Pacific and urban centers with experiential retail.
Strategy Recommendations for Companies to Follow in 2025:
Innovate for Impact: Introduce sustainable technologies (e.g., spray-on materials) to lead in eco-friendly sportswear.
Enhance Retail Experience: Open flagship stores that showcase both apparel and footwear in lifestyle settings.
Foster Long-Term Collaborations: Work with fashion and cultural leaders to maintain relevance and exclusivity.
Build Community Engagement: Create campaigns that blend brand identity with cultural and lifestyle trends (e.g., geo-trail treasure hunts).
Final Sentence (Key Concept):
On Running’s success stems from blending performance, luxury, and sustainability, creating a brand that resonates deeply with younger, globally-conscious, and style-savvy consumers.
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