By Layla Zulfa 
Zurich, Switzerland – On Holding AG, the rapidly expanding Swiss sportswear brand, has announced a significant leadership transition, with co-founders Caspar Coppetti and David Allemann set to assume the roles of co-chief executives in May. This strategic move aims to reinforce the company’s foundational vision and maintain its aggressive growth trajectory, particularly following a period of exceptional financial performance driven by robust demand in key markets like the United States. The leadership change underscores On’s commitment to an agile, founder-led approach as it navigates an increasingly competitive global athletic footwear and apparel landscape.
A Strategic Shift to Founder-Led Leadership
The appointment of Coppetti and Allemann to the joint CEO positions marks a pivotal moment for On. The decision is framed as a proactive measure to ensure the company’s continued momentum, leveraging the deep institutional knowledge and entrepreneurial spirit of its originators. Marc Maurer, who has served as the chief executive since 2020, will transition into the role of Executive Chairman, ensuring continuity and strategic oversight at the board level. This new structure is designed to harness the individual strengths of the co-founders – with Allemann often focusing on brand, marketing, and product narrative, and Coppetti on strategy, innovation, and market expansion – allowing for a more dynamic and responsive leadership model. The company’s board believes that embedding the founders directly in the operational helm will accelerate decision-making, reinforce brand ethos, and foster an environment conducive to sustained innovation and global market penetration.
The Genesis and Ascent of a Global Challenger
On was founded in 2010 in Zurich, Switzerland, by Olivier Bernhard, a former professional athlete, alongside Caspar Coppetti and David Allemann. Their shared vision was to revolutionize the running experience by creating a shoe that offered both soft landings and explosive take-offs. This led to the development of their distinctive CloudTec® cushioning technology, characterized by hollow pods on the outsole that compress upon impact and then firm up for a powerful push-off. The initial prototype, a garden hose cut into pieces and glued to a running shoe, quickly evolved into a patented system that captured the attention of the running community.
The brand’s early years were marked by a relentless focus on product innovation and grassroots marketing within the running circuit. By 2012, On had already garnered international acclaim, winning prestigious design and innovation awards. Its minimalist aesthetic combined with performance-driven technology resonated with a growing segment of runners seeking a different experience than what traditional brands offered. The company strategically expanded its product portfolio, moving beyond pure running shoes to include trail running, hiking, and eventually lifestyle footwear, broadening its appeal to a wider consumer base.
A significant milestone in On’s journey was the investment and partnership with tennis legend Roger Federer in 2019. Federer, who not only became an investor but also a creative collaborator and ambassador, brought unparalleled global recognition and credibility to the brand. His involvement culminated in the launch of "The Roger" line of tennis-inspired lifestyle shoes, further cementing On’s transition from a niche running brand to a broader sportswear and lifestyle powerhouse. This partnership provided a substantial boost to the brand’s visibility and cultural relevance, particularly in the crucial North American market.
A Decade of Explosive Growth: Financials and Market Footprint
On’s growth trajectory has been nothing short of remarkable. After a decade of consistent expansion, the company successfully launched its Initial Public Offering (IPO) on the New York Stock Exchange (NYSE: ONON) in September 2021, raising approximately $746 million and valuing the company at over $7 billion. The IPO was met with strong investor demand, reflecting confidence in its unique brand proposition and robust financial performance.
Since its public debut, On has continued to report impressive financial results, consistently outpacing market expectations. For the fiscal year 2023, the company reported net sales of CHF 1.79 billion (approximately $1.98 billion USD), marking a 46.6% increase year-over-year. This growth was particularly strong in the North American market, which saw a 52.2% increase in sales, highlighting the region’s pivotal role in On’s global strategy. Direct-to-consumer (D2C) sales also experienced significant growth, increasing by 50.9% to CHF 639.2 million, underscoring the brand’s successful digital engagement and retail store expansion. Gross profit margin for FY2023 reached 59.6%, a testament to its premium pricing strategy and efficient supply chain management. These figures demonstrate On’s ability to not only expand its market share but also maintain strong profitability in a highly competitive industry. The "earnings that topped estimates" mentioned in earlier reports reflect this consistent pattern of exceeding analyst expectations, driven largely by strong sneaker sales and successful product launches.
Geographically, On has established a formidable presence across Europe, the United States, and Asia-Pacific. While Europe remains a core market, the U.S. has emerged as its largest and fastest-growing region, driven by effective marketing, a strong product portfolio, and the halo effect of celebrity endorsements. The company’s expansion into Asia, particularly China and Japan, also presents significant long-term growth opportunities, as these markets increasingly embrace active lifestyles and premium sportswear.
Implications of the Co-CEO Model and Future Outlook
The adoption of a co-CEO model, while not uncommon in certain industries, is a significant strategic choice in the fast-paced sportswear sector. It signals a deliberate effort to blend diverse leadership strengths and maintain a founder-driven culture. Caspar Coppetti, with his background in digital strategy and brand building, is expected to continue driving innovation and market expansion initiatives. David Allemann, a veteran in marketing and communication, will likely focus on strengthening brand narrative, consumer engagement, and product development vision. This dual leadership could foster a more collaborative and agile environment, allowing the company to respond swiftly to market trends and consumer demands.
However, co-CEO structures also present potential challenges, primarily around clear delineation of responsibilities and avoiding internal friction. On’s leadership team has likely established robust frameworks to mitigate these risks, ensuring seamless coordination and unified strategic direction. The transition of Marc Maurer to Executive Chairman is crucial in this regard, providing an overarching strategic perspective and ensuring that the co-CEOs operate within a cohesive governance framework. His continued involvement offers stability and continuity, particularly in investor relations and long-term strategic planning.
Looking ahead, On’s growth trajectory is expected to be fueled by several key pillars. Continued investment in research and development will be paramount to maintain its technological edge, particularly with its CloudTec® and other proprietary cushioning systems. The expansion of its apparel line, which currently contributes a smaller but growing portion of revenue, offers a significant opportunity to diversify its product mix and capture a larger share of the activewear market. Furthermore, strategic retail expansion, both through flagship stores and partnerships with premium retailers, will enhance brand visibility and consumer experience. The company is also likely to deepen its commitment to sustainability, an increasingly important factor for consumers in the sportswear industry, by exploring eco-friendly materials and manufacturing processes.
Market analysts generally view On’s strategic moves positively, often highlighting the brand’s strong resonance with consumers, its innovative product pipeline, and its effective marketing strategies. The return of the founders to the operational helm is seen by some as a reinforcement of the company’s core values and a commitment to its unique identity in a crowded market. This leadership transition comes at a time when the global athletic footwear market is projected to continue its robust growth, driven by increasing health consciousness, the casualization of fashion, and the rise of athleisure. On, with its distinctive technology and strong brand appeal, is well-positioned to capture a significant portion of this expanding market.
In conclusion, the appointment of Caspar Coppetti and David Allemann as co-CEOs marks a strategic evolution for On Holding AG, reflecting a proactive approach to sustain its impressive growth. This move, supported by a decade of innovation, strong financial performance, and a strategic partnership with Roger Federer, positions the Swiss brand for continued success as it solidifies its place among the global leaders in sportswear and lifestyle. The company’s future will hinge on its ability to leverage this founder-led vision to drive further innovation, expand its global footprint, and adapt to the evolving demands of the modern consumer.