First up: ON Running. A Swiss company posting 34% growth, beloved by marathoners and management consultants alike, with a product everyone recognizes but a brand nobody can quite define.
In this episode, my co-host Steve and I dissect:
- Why ON's biggest problem isn't Nike's $4.7B marketing budget
- The identity crisis between Roger Federer and Zendaya
- A bold M&A play that could change the game
- The massive, overlooked opportunity in foot health and the aging affluent
Here's the thing: Most business podcasts tell you what happened. We tell companies what they should do next.
🎧 Listen now: https://open.spotify.com/episode/14oKeqhDvXtBRRunmM5klq?si=3e9016bf072742dd
Or watch here: https://youtu.be/fnXqQnqdXbo?si=STf1Ke1-uSmdkmgK
Next target? We're just getting started.
Dear Mr. Hoffmann,
Congratulations. You’ve built a rocket ship. A company born from gluing pieces of a garden hose to the sole of a shoe is now posting nearly a billion dollars in quarterly revenue and 34% year-over-year growth, leaving giants like Nike and Adidas in your dust. You are the envy of the industry. But a rocket ship without a clear destination is just a firework, a spectacular, fleeting burst of light.
Your current trajectory, while impressive, is unsustainable because your brand is not well defined or recalled (if they know the name of the brand at all!) and your marketing is pulling in different directions.
- You have Roger Federer, the embodiment of Swiss precision and timeless elegance, as a key partner. This is a brilliant move that aligns perfectly with your heritage.
- Then, you have Zendaya, a play for the heart of Gen Z and the ephemeral world of fashion
Your budget is too small to be the choice of both the Davos man and the TikTok influencer. Trying to be both means you will ultimately be neither. Nike owns the soul of the young athlete; you will not outspend or out-cool them.
Your challenge is not a lack of innovation in foam composites, but a lack of clarity in brand identity. The silhouette of your shoe is iconic, but the soul of your brand remains undefined. This is not a problem to be solved with a new product launch; it requires a bold, strategic move.
The Big Merger Move:
Your real competitor is not just Nike; it is irrelevance. The path forward is not to out-spend the giant, but to consolidate the rebellion. You should acquire Hoka.
This move would create a formidable challenger with the scale to truly compete. More importantly, it would allow you to resolve your brand’s identity crisis. Let Hoka be the Prada of running—the bold, chunky, fashion-forward choice for the Gen Z consumer. Let them own the vibrant, expressive side of the market.
This frees On to become the Rolex of performance footwear. Double down on your Swissness. Your brand is not about sweat and tears; it is about precision, engineering, and refinement. Your advertising should look less like a Gatorade commercial and more like a luxury watch campaign. Your future is in sophisticated sports like golf, sailing, and tennis—the pastimes of the global elite who appreciate and can afford premium engineering.
The Mission: Beyond the Product
With a clarified brand, you need a mission that transcends the shoe itself. You have two powerful options:
1. Become the Operating System for Movement: You have put clouds on our feet; now put an operating system in the shoe. The world does not need another step counter. It needs a way to measure and improve foot health. Imagine sensors in your shoes that track foot strength, arch stability, and gait mechanics, providing data that makes people as obsessive about their foot health as the Oura Ring has made them about their sleep. This is the ultimate expression of Swiss engineering—turning the shoe into a personalized performance and health device.
2. Champion Longevity Through Movement: The largest and most affluent market is not the 20-year-old marathoner, but the 60-year-old who wants to keep moving without pain. One in three older adults suffers from foot pain that impacts their quality of life. Make it your mission to solve this. This is not about making orthopedic shoes; it is about engineering performance footwear that enables a generation to age with mobility and grace. This is a mission that builds a loyal, lasting community around your brand.
The Endgame
You have already engineered a revolutionary shoe. Now, you must engineer an enduring brand. The choice is between being a celebrated chapter in the history of footwear or becoming a timeless icon. Your next move will determine whether On is a fleeting trend or a permanent fixture in the landscape of global luxury and performance.
Sincerely,
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