On Holding AG (ONON): Marketing Mix Analysis [Dec-2025 Updated]

You're looking at a company that's successfully navigated the crowded sportswear market, projecting nearly CHF 2.98 billion in 2025 net sales by doubling down on premium performance. Honestly, the real story isn't just the growth; it's the margin expansion, with Q3 gross profit hitting a record 65.7% thanks to a disciplined pricing strategy and a strategic pivot. We've seen the Direct-to-Consumer (DTC) channel surge to CHF 314.7 million in Q3 alone, even as wholesale still accounts for over 60.4% of the business. So, what exactly is driving this premium positioning-from their core running footwear innovation to their high-profile athlete endorsements-and how sustainable is this high-margin playbook as they push into apparel and new global markets like APAC? Let's break down the Product, Place, Promotion, and Price strategy that's making this Swiss running giant one to watch.

On Holding AG (ONON) - Marketing Mix: Product

You're looking at the core offering of On Holding AG as of late 2025, and honestly, it's a story of successful expansion beyond the initial niche. The foundation remains premium performance running footwear, anchored by the iconic Cloud series and its underlying CloudTec technology. This is still the main revenue engine, but the growth story is increasingly about the breadth of the portfolio.

Footwear net sales for the third quarter ended September 30, 2025, reached CHF 731.3 million, representing a reported year-over-year increase of 21.1%, or 30.4% on a constant currency basis. That shows the core product is still incredibly healthy, but the real momentum is elsewhere.

Apparel is rapidly establishing itself as a significant standalone growth pillar. Net sales from this category hit CHF 50.1 million in Q3 2025, which is a massive reported jump of 86.9% year-over-year, or 100.2% in constant currency. To put a pin in that growth, the company sold over 1 million apparel units in that single quarter for the first time. This clearly signals the strategic shift toward building a full sportswear brand, not just a shoe company.

The diversification strategy is clearly paying off across multiple fronts, moving On Holding AG into adjacent, high-growth performance segments. You see this in the stated focus on categories like tennis, training, and outdoor gear, leveraging the same engineering ethos from the Swiss Alps.

Here's the quick math on how the product categories stacked up in Q3 2025:

The innovation pipeline is what fuels this premium positioning. You've got the ongoing evolution of the core running line, with key launches like the Cloudmonster 3 and Cloudrunner 3 slated for Q1 2026. But the real headline technology is LightSpray. This groundbreaking innovation, which uses robotic arms to spray a light material onto the sole to form a single-piece, laceless model, is set to redefine the running assortment. Specifically, the LightSpray Cloudmonster Hyper is planned for the Spring/Summer 2026 season, bringing this championship-level technology to everyday runners.

The product strategy is clearly focused on:

• Maintaining core dominance in premium performance running footwear.
• Scaling apparel to become a material revenue contributor, evidenced by the 86.9% growth.
• Expanding into adjacent performance communities, including tennis and outdoor.
• Integrating next-generation manufacturing technology like LightSpray to drive both product differentiation and operational efficiencies.

If onboarding those new product lines takes longer than expected, especially with the new manufacturing techniques, margin pressure could arise, but for now, the product execution is driving record profitability.

On Holding AG (ONON) - Marketing Mix: Place

You're looking at On Holding AG's distribution strategy, and the main theme right now is a deliberate, aggressive pivot toward higher-margin sales. This is the core of their 'Place' strategy: getting product closer to the end consumer to capture better profitability, even as they maintain crucial wholesale relationships.

Wholesale remains the largest channel, accounting for 60.4% of Q3 2025 net sales. Still, the growth rate in this channel, at 23.3% reported year-over-year, is lagging the push in their owned channels. This dynamic is causing a slight but meaningful shift in the overall sales mix, which is exactly what management is aiming for to boost margins.

The Direct-to-Consumer (DTC) channel is where the acceleration is happening. DTC net sales surged to CHF 314.7 million in Q3 2025, representing a reported year-over-year increase of 27.6%. This channel now makes up 39.6% of total net sales, up from 38.8% in the same period last year. Honestly, this move is about control and margin capture; DTC is where On Holding AG reinforces its premium positioning directly.

Here's a quick comparison of the two primary channels for the third quarter of 2025:

The global retail footprint expansion is a key part of making DTC work beyond e-commerce. On Holding AG is actively expanding its network of premium brand hubs in key cities. We saw new retail store locations open in Palo Alto, Zurich, and Tokyo recently. These physical locations are major traffic drivers that help connect the digital and physical customer experiences.

Geographically, the Asia-Pacific (APAC) region is the hyper-growth engine driving distribution success outside of the established Americas and EMEA markets. APAC is now nearly 20% of total sales, a massive jump that shows the global appeal of the premium strategy. That region delivered explosive results in Q3 2025.

Key statistical highlights for the APAC region in Q3 2025 include:

• APAC net sales reached CHF 144.9 million.
• Reported net sales increased by 94.2% year-over-year.
• Constant currency growth hit an extraordinary 109.2%.
• The region is now approaching 20% of On Holding AG's total business.

The new store in Tokyo's Ginza district, for example, posted the highest monthly sales of any store in their entire network in October. That's a concrete example of successful physical placement supporting the premium narrative.

On Holding AG (ONON) - Marketing Mix: Promotion

Positioning as the most premium global sportswear brand in the marketplace.

On Holding AG achieved a gross profit margin of 65.7% in the third quarter ended September 30, 2025, up 510 basis points year-over-year. The full-year 2025 guidance for the gross profit margin was raised to around 62.5%. The company reported a net income margin of 15.0% in Q3 2025, up from 4.8% in the prior year.

The premium positioning is supported by the following financial metrics for the third quarter ended September 30, 2025:

Leveraging high-profile athlete partnerships, notably with Roger Federer.

Management mentioned emphasizing partnerships with influencers like Zendaya and Roger Federer as part of strategies to engage younger consumers in Q1 2025. The company's ethos is 'Created by athletes, for athletes,' with gold medallists working in the On Lab to develop next-generation shoe technology.

Sustained investment in marketing to drive brand awareness and performance credibility.

Selling, General & Administrative (SGA) expenses, excluding share-based compensation, were 47.1% of net sales in Q3 2025, an increase from 46% in the prior year, reflecting deliberate investment in future growth through marketing. Capital expenditures for Q3 2025 were CHF 20.5 million, representing 2.6% of net sales, an improvement from 3% in the prior year.

Key investment areas and resulting performance metrics include:

• Direct-to-Consumer (DTC) sales grew 27.6% (37.5% constant currency) to CHF 314.7 million in Q3 2025.
• DTC sales grew 54.3% (constant currency) in the first half of 2025.
• The company reported cash and equivalents of CHF 846.6 million as of June 30, 2025.
• Cash and cash equivalents increased by 4.1% to CHF 961.8 million by the end of Q3 2025.

Campaigns focus on building a full sportswear brand, including apparel and accessories.

The apparel category achieved net sales growth of 86.9%, or 100.2% on a constant currency basis, reaching CHF 50.1 million in Q3 2025. The company sold 'over 1 million apparel units in a single quarter'. For the first half of 2025, accessories net sales grew by 143.2% in constant currency.

Brand momentum is growing faster than any other competitor in the category.

On Holding AG's net sales growth on a constant currency basis was 34.5% in Q3 2025. The brand is growing 'twice as fast as Hoka and almost ten times faster than Puma or Adidas' in Q3 2025. The Asia-Pacific (APAC) region delivered triple-digit constant currency growth of 109.2% in Q3 2025. The company raised its full-year 2025 guidance, now expecting net sales growth of at least 34% in constant currency, targeting reported sales of CHF 2.98 billion.

On Holding AG (ONON) - Marketing Mix: Price

On Holding AG executes a disciplined premium pricing strategy, which is clearly supported by its channel mix. The commitment to full-price selling, especially heading into the holiday season, is a stated competitive advantage. This focus on maintaining price integrity, rather than relying on heavy discounting, directly fuels superior profitability. You see this validation in the third quarter results, where pricing power translated into a record gross profit margin.

The success of this premium positioning is evident when you look at the key profitability metrics from the latest reported quarter:

The strategy involves segmenting the market for high-end innovation. For instance, new performance products like the Cloudmonster Hyper Light Spray carry a premium price point of $240. This price anchors the perception of the product as top-tier technology, which is crucial for a brand aiming to be the most premium global sportswear name. Honestly, setting a high initial price for flagship innovation helps manage the perceived value across the entire portfolio.

Looking ahead, On Holding AG has raised its expectations for the full year 2025, reflecting continued confidence in this pricing structure. The updated full-year guidance for the gross profit margin is now set around 62.5%, a meaningful increase from previous expectations, which were in the 60.5% to 61.0% range. This higher margin target underscores the expectation that the high Direct-to-Consumer mix will continue to support superior profitability through full-price sales throughout the remainder of the year.

• Disciplined premium pricing strategy in effect.
• Limited discounting is a core tenet for Q4.
• New performance product launches command top-tier pricing.
• High DTC mix drives better realized prices.