Behind the opening of the On Shenzhen flagship store lies the "all-category" ambition of this rising star in running shoes.

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On's strategic deployment in China is accelerating.

Recently, Swiss sports brand On opened its largest flagship store in China at Shenzhen MixC World, with a store area of 802 square meters.

Compared to the first store in Chengdu less than a year ago, the Shenzhen flagship is nearly double the size and has significantly increased the display space for apparel and accessories.

This change reflects the evolution of the brand's development stage.

In the 2025 fiscal year, On's global revenue surpassed 3 billion Swiss francs, entering a new scale bracket. At the same time, the frequency of discussions about the apparel category in performance meetings has noticeably increased.

At the opening event, On’s Chief Commercial Officer, Britt Olsen, stated that apparel is increasingly important in the brand’s global business, and the Chinese market is at the forefront of this trend. The DTC model and offline retail stores will serve as the core growth engines driving this transformation.

She revealed that apparel sales in self-operated stores are expected to account for 25% to 30%, significantly higher than other channels.

The opening of the Shenzhen flagship store under such circumstances is a concentrated manifestation of the brand’s transformation phase.

As the store network expands and the category matrix extends, On hopes that consumers will perceive it not merely as a running shoe brand, but as a complete sports brand covering footwear, apparel, and lifestyle.

After lengthening the category front, On inevitably enters a broader competitive arena.

"China First"

In On's global business map, China has become the fastest-growing and most dynamic strategic market.

In the 2025 fiscal year, On's net sales in the Asia-Pacific region increased by 96.4% year-on-year, contributing about 17% of global revenue, with the Chinese market as the main growth engine.

“China is currently On’s fastest-growing global market, and we expect this momentum to continue for the next few years.” Britt Olsen, On’s Chief Commercial Officer, told Xin Feng and other media that Chinese consumers are often ahead of other markets in brand awareness and consumption trends.

This leadership largely stems from structural differences between China’s sports consumption ecosystem and European and American markets.

First, the spread of sports culture is faster. Outdoor activities like running, camping, and hiking have burst onto the scene in China, compressing the time window from user education to category expansion for brands.

Secondly, the market volume is vast, but the competitive landscape for premium sports brands is not yet fully formed.

At the intersection of professional sports and lifestyle, consumer cognition is still taking shape, which gives new brands room to establish positioning through product innovation and retail experience.

In such an environment, China is gradually assuming a role in On’s global system that is different from other regions.

This is reflected in On's more aggressive retail expansion strategy in China.

According to Rebecca Cai, General Manager of On Asia-Pacific, the brand’s store network is currently centered on first-tier cities, covering Beijing, Shanghai, Guangzhou, Shenzhen, Chengdu, Nanjing, and other key markets, entering around 30 cities nationwide. By the end of 2026, On's total number of stores in China is expected to reach about 100, including self-operated and distributor partner stores.

She said that self-operated stores and distributors form complementary pathways in China. Flagship and key retail stores are usually operated directly, while distributors help the brand accelerate entry into more cities and undertake community operations and brand promotion.

“For example, in Shenyang, Ningbo, and other regions, distributor partners play a very important role in building communities and promoting the brand,” said Rebecca.

But compared to global markets, the direct operation model weighs significantly more in On’s China strategy.

According to previous company disclosures, about half of the planned annual new 20–25 direct-operated stores globally will be opened in China.

A higher proportion of direct investment not only makes China the fastest-growing sales region, but also prioritizes China as a testing ground for new store formats and retail models.

On's Chief Marketing Officer, Alex Griffin, pointed out that although On maintains a unified core brand globally, different markets are at different development stages.

“In China, consumers tend to see On as a complete sports brand from head to toe from the very beginning, not just a footwear brand, so we have tried many new things here,” said Alex.

He mentioned that internally, this strategy is even described as “China First”—showing the best version On can be in China first, then spreading the experience to other markets.

A typical example is the Run Base, which opened at Shanghai West Bund in 2024. It is currently the only On store globally where nearly 70% of the space is used for events, experiences, and relaxation, making it an important sample for testing community operations and spatial expression.

The opening of the Shenzhen flagship store follows this same approach.

Larger stores, more complete category combinations, and space design emphasizing experience and community functions enable the Chinese market to continue playing a key role in verifying On’s new retail formats.

Ambition for All Categories

Looking solely at its revenue structure, On is still a typical running shoe-driven company.

In the 2025 fiscal year, footwear still contributed the vast majority of sales, while the apparel business accounted for only single digits, about 5.6%.

However, in terms of growth rate, apparel is one of the fastest expanding segments within the brand. In the fourth quarter of 2025, apparel revenue almost increased by 40% year-on-year, significantly outpacing footwear.

For On, moving toward all categories is almost the inevitable path to a larger scale.

Compared to footwear, apparel offers higher purchase frequency, shorter development cycles, and stronger repeat purchase attributes, while also improving per-customer transaction value and linkage rate. As the proportion of direct channels continues to rise, growth in apparel business will directly improve the overall profitability model.

However, transforming from a running shoe brand to a full sports brand is far more than just adding SKUs.

The first challenge is the continuation of brand professional perception.

On initially established a clear technical image with its highly recognizable sole structure—CloudTec® became the most intuitive brand identifier and gave On a distinct professional label in a short time.

But as the product line extends from running shoes to hoodies, jackets, and even accessories, maintaining this technical “professional feel” becomes a question On must answer.

Previously, consumers only needed to glance at the sole to understand On’s uniqueness, but in apparel, this intuitive technical edge is harder to replicate.

On's Chief Marketing Officer Alex Griffin said that the brand’s restrained and minimal design language brings certain challenges in apparel.

This means On can't rely on flashy designs to attract attention, but needs to build recognition through cut, materials, and overall style, and tell more stories about materials and innovation.

In addition, the complexity of apparel’s supply chain is much higher than footwear, requiring higher standards for inventory turnover, fabric development, and production pace.

This field is also surrounded by brands like Lululemon, Arc'teryx, HOKA, etc.

The overlap in offline channels makes competition even more direct. Leading sports and lifestyle brands usually prioritize entry into the same top-tier malls; during expansion, On will inevitably face direct competition with established brands.

Taking first-tier cities like Guangzhou and Shanghai as examples, On’s direct stores are often located in Tianhui Plaza, Taikoo Hui, MixC, and other core shopping centers, which also gather brands like Lululemon.

“There are actually only a limited number of highly recognized outdoor brands in the current market,” said Du Bin, Secretary-General of the Brand Expert Committee of the Shanghai Shopping Center Association. “Shopping centers usually want to gather them as much as possible to enhance the project’s attractiveness.”

Moving from a running brand into the wider sports and lifestyle market means On has to compete head-on with many established brands in the same shopping center system and in front of the same batch of consumers.

But from management’s perspective, as a young brand, On has no historical burden and can flexibly adjust its product structure, making it easier to find new ways to express itself between professional sports and daily wear.

The faster this step is taken, the more direct the competition will be.

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