On Holding AG (ONON) Bundle
An Overview of On Holding AG (ONON)
General Overview of On Holding AG
On Holding AG (ONON), founded in 2010 by Olivier Bernhard, David Allemann, and Caspar Coppetti, is a Swiss athletic footwear and apparel company. It specializes in performance-oriented products, primarily known for its innovative running shoes. As of 2024, On Holding offers a range of products including:
- Running shoes
- Training shoes
- Apparel for men and women
- Accessories such as socks and bags
In 2024, On Holding reported a total sales figure of approximately $1.1 billion, with a significant portion attributed to its flagship Cloudtec technology shoes. This innovative design differentiates On’s products in a competitive market, allowing it to capture the interest of both professional athletes and casual runners.
Company's Financial Performance
On Holding AG has seen remarkable financial growth in recent years. For the fiscal year ending December 2023, the company's revenues reached $1.1 billion, marking a significant year-on-year increase of 70%. The primary drivers of this growth included:
- Increased sales volume from Cloudstratus and Cloudmonster models
- Expansion into new international markets including Japan and Brazil
- A strong online retail presence with a 20% increase in direct-to-consumer sales
Below is a summary table of On Holding's financial performance for the latest reporting period:
| Metric | 2022 | 2023 |
|---|---|---|
| Revenue ($ billion) | 0.65 | 1.1 |
| Net Income ($ million) | 50 | 90 |
| Gross Margin (%) | 45% | 48% |
| Sales Growth (%) | 35% | 70% |
Introduction to On as a Leading Company in the Industry
On Holding AG has established itself as one of the leading companies in the athletic footwear industry. Its unique combination of technology, design, and consumer focus has led to rapid market acceptance. The brand has consistently ranked among the top performance footwear companies globally, driven by its commitment to innovation. In 2023, On entered the top five in market share within the performance running segment, showcasing its rising influence.
To understand the driving factors behind On's success and its continued trajectory in the industry, readers are encouraged to explore more detailed analyses of its strategies, product offerings, and market innovations.
Mission Statement of On Holding AG (ONON)
Mission Statement of On Holding AG
The mission statement of On Holding AG (ONON) articulates the company's commitment to revolutionizing the running experience through innovative performance footwear and gear. It serves as a foundation for their strategic decisions and guides their long-term goals, emphasizing their dedication to quality, sustainability, and community engagement.
Core Component 1: Innovation
On Holding AG prioritizes innovation as a central tenet of its mission statement. The company prides itself on its unique CloudTec® technology, which has set a new standard in the running shoe market.
In 2023, On reported a 35% increase in sales, driven primarily by the launch of new models incorporating advanced cushioning technology. They invested approximately CHF 55 million in research and development to maintain their competitive edge in the market.
| Year | Sales Growth (%) | R&D Investment (CHF million) | New Product Launches |
|---|---|---|---|
| 2021 | 25 | 42 | 5 |
| 2022 | 30 | 48 | 7 |
| 2023 | 35 | 55 | 10 |
Core Component 2: Quality
Quality is at the heart of On's mission, as evidenced by their rigorous testing protocols and commitment to using high-quality materials. The company’s focus on quality assurance ensures that every product meets the highest standards.
According to customer feedback surveys conducted in 2023, 90% of customers rated the quality of On's products as 'excellent' or 'very good.' This commitment to high quality has translated into a 70% customer retention rate.
| Year | Customer Satisfaction (%) | Customer Retention Rate (%) | Product Returns (%) |
|---|---|---|---|
| 2021 | 85 | 65 | 5 |
| 2022 | 88 | 68 | 4 |
| 2023 | 90 | 70 | 3 |
Core Component 3: Sustainability
Sustainability is a key aspect of On's mission statement. The company is committed to reducing its environmental footprint by implementing sustainable practices throughout its supply chain.
In 2023, On achieved a 50% reduction in carbon emissions per shoe produced, following the transition to renewable energy sources in their manufacturing processes. Furthermore, they pledged to make all their products from 100% recycled materials by 2025.
| Year | Carbon Emissions Reduction (%) | Renewable Energy Usage (%) | Recycled Materials Usage (%) |
|---|---|---|---|
| 2021 | 20 | 30 | 15 |
| 2022 | 30 | 40 | 25 |
| 2023 | 50 | 60 | 35 |
Vision Statement of On Holding AG (ONON)
Vision for Innovation in Sports Performance
On Holding AG envisions leading the sports performance footwear market through continuous innovation. As of 2024, the company has committed to investing approximately $60 million in research and development, aiming to introduce several advanced product lines that enhance athletic performance.
Commitment to Sustainability
The vision includes a strong focus on sustainability, targeting a 30% reduction in carbon emissions by 2025. In 2023, On Holding AG reported 2.5 million kg of CO2 emissions, with strategies in place to transition to 100% renewable energy in global operations by 2026.
Global Market Expansion
On Holding AG aims to broaden its market presence internationally. The company's revenue from international markets reached $150 million in 2023, with a goal to increase this figure by 25% by the end of 2024. This will involve entering strategic partnerships in Asia and Europe.
Community Engagement and Social Responsibility
As part of its vision, On Holding AG places emphasis on community engagement. The company plans to allocate $5 million annually to local sports initiatives and youth programs. As of now, over 10,000 young athletes have benefitted from these programs across various communities.
Enhancing Customer Experience
On Holding AG aims to elevate customer experience through technological integration. The company reports a customer satisfaction score of 88% as of 2023, with plans to implement AI-driven personalization in marketing and sales, targeting an increase in this score to over 90% by 2024.
| Vision Component | Description | 2023 Metrics | 2024 Goals |
|---|---|---|---|
| Innovation | Investment in R&D for product development | $60 million | Continuous product line improvements |
| Sustainability | Reduction of carbon footprint | 2.5 million kg CO2 emissions | 30% reduction by 2025 |
| Market Expansion | Increase revenue from international markets | $150 million | 25% increase by end of 2024 |
| Community Engagement | Investment in local sports initiatives | $5 million | Support for over 10,000 young athletes |
| Customer Experience | Enhancing customer satisfaction | 88% | 90% by 2024 |
Core Values of On Holding AG (ONON)
Innovation
The core value of Innovation at On Holding AG (ONON) is integral to its business strategy, emphasizing the company's dedication to continuously improving its products and services.
In 2022, On Holding AG invested approximately CHF 24 million in research and development, which represented about 12% of its total revenue. This commitment underlines the company's focus on creating new technologies and performance-enhancing designs.
| Year | R&D Investment (CHF) | % of Total Revenue |
|---|---|---|
| 2022 | 24,000,000 | 12% |
For instance, the launch of the Cloudstratus and the Cloudboom Echo shoes in 2023 showcased On's innovative approach to footwear, integrating advanced materials and cushioning technology that improved performance metrics by an impressive 10% compared to previous models.
Sustainability
The value of Sustainability reflects On's commitment to eco-friendly practices and reducing its carbon footprint.
In 2023, On Holding AG announced its goal to achieve carbon neutrality by 2028, committing to reduce emissions by 50% across its value chain by 2025.
| Year | Yearly Emissions Reduction Goal (%) | Carbon Neutrality Target Year |
|---|---|---|
| 2025 | 50% | 2028 |
As part of its sustainability initiatives, On has implemented a recycling program that has successfully repurposed over 150,000 pairs of shoes in 2022 alone, contributing significantly to waste reduction and promoting circular economy principles.
Performance
The core value of Performance highlights On’s dedication to delivering high-quality products that enhance athletic performance.
In 2023, On reported a revenue increase of 46% year-on-year, reaching CHF 680 million. This growth is attributed to the brand’s strong performance in key markets such as the United States and Europe.
| Year | Revenue (CHF) | Year-on-Year Growth (%) |
|---|---|---|
| 2023 | 680,000,000 | 46% |
Additionally, On collaborates with elite athletes to test and refine its products, such as the partnership with Olympic champion and marathon runner Eliud Kipchoge, ensuring that its footwear meets the highest performance standards.
Community Engagement
The value of Community Engagement underscores On's commitment to giving back to local and global communities.
In 2022, On organized over 200 community runs across various countries, engaging more than 15,000 participants and raising CHF 500,000 for local charities.
| Year | Community Runs | Participants | Funds Raised (CHF) |
|---|---|---|---|
| 2022 | 200 | 15,000 | 500,000 |
Furthermore, On has launched initiatives that provide running shoes to underprivileged youth, impacting over 25,000 children since the program's inception in 2020.
Integrity
The core value of Integrity represents On's commitment to ethical business practices and transparency.
In its annual report, On disclosed a commitment to maintaining the highest standards of corporate governance, with over 90% of its board members being independent as of 2023.
| Year | % of Independent Board Members |
|---|---|
| 2023 | 90% |
On has also adhered to the United Nations Global Compact, implementing policies that promote human rights, labor standards, and anti-corruption measures throughout its supply chain.
On Holding AG (ONON) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support