Business has never been better for Roger Federer-backed takkie company

Zurich — For Swiss running shoemaker On, whose proprietary cushioning technology has attracted Roger Federer as an investor, the global coronavirus lockdowns had positive side effects.

Online sales more than tripled in the three months through May as consumers itching for a good workout but wary of gyms turned to outdoor running, according to CEO David Allemann. Demand has remained just as strong after brick-and-mortar stores started to reopen, signalling the trend may be here to stay even as gyms restart.

“The whole lockdown has been transformational for our consumers and our industry,” Allemann said in an interview. “This outdoor running boom is really going to support our brand momentum.”

The brand may see another uptick as Federer, who became a shareholder of the Zurich-based company in November, unveiled the latest On shoe, which he helped design, on Monday. That may help the underdog label compete with giants such as Nike, which has a line named after Michael Jordan, and Adidas, which sells Stan Smith shoes.

On’s shoes have hollow tube-like attachments made of rubber or foam on the outsoles that promise runners a soft landing, while locking firm when taking off — a patented technology called Cloudtec the company invented.

“The Roger” is an all-white tennis-inspired sneaker made with faux leather adorned with Cloudtec instead of a heavy rubber sole. The line is limited to 1,000 pairs and comes with a price tag of $249.99.

The Swiss label has become one of the world’s fastest-growing running shoe brands since it was founded a decade ago. The privately held company doesn’t disclose ownership or financial details. It’s ranked number six the US running shoe category, with a 6.6% market share, vs 26% for Brooks, the largest brand in the $475m market, according to researcher NPD.

“Performance running will be a real beneficiary in today’s Covid-19 world,” Matt Powell, NPD’s sports industry adviser, said in a report.

The shoemaker works with about 6,000 retailers worldwide, and is set to unveil its first big flagship store on Manhattan’s Lafayette Street by the end of 2020, following two trial stores in Shanghai. Whether the company will add more shops depends on how the coronavirus pandemic changes consumer behaviour.

“We’ll observe in the next months what the retail landscape looks like and whether it makes sense to continue with this concept,” Alleman said. “We will also want to see what happens to big shopping hubs like London if people are travelling less. That’s all still up in the air.”

Bloomberg