The running shoes worn by Lei Jun have sold over 26 billion yuan in a year, and On Running is also competing with Lululemon for the middle class.

Source: Times Finance Author: Zhou Jiabao

Image source: Visual China

After Arc’teryx and Lululemon, On is also continuously gaining popularity among China’s middle class.

On’s largest flagship store in China opened on March 5 at Shenzhen MixC World. Founded in 2010, this Swiss sports brand has entered over 30 cities in China since 2018, opening more than 80 stores, with plans to reach 100 stores by 2026.

Over the past year, On has been rapidly expanding in the Asia-Pacific region, with China serving as a key growth engine. By 2025, On’s net sales in Asia-Pacific grew 96.4% year-over-year to 511 million Swiss francs, nearly doubling; driving total net sales for the year to 3.014 billion Swiss francs (about 26.6 billion RMB), surpassing the 3 billion mark for the first time.

From 2021 to 2025, On’s net sales skyrocketed from 725 million Swiss francs to 3.014 billion Swiss francs, an increase of over 300%. In a context where traditional sports brands like Nike are experiencing sluggish growth, this Swiss brand, known for its hollowed-out sole design, has quietly entered Lululemon’s territory.

“One metro car has three pairs of On,” posted a Shanghai netizen on social media.

“Middle class considers On as a foot health brand.”

“Running shoes priced above 1,000 RMB,” “Elites in Wall Street and Silicon Valley are rushing to wear them”—whether in pricing or target audience, On is deeply associated with a high-end status symbol.

In China, On’s Cloud 6 men’s casual sneakers are priced at 1,090 RMB, with waterproof versions at 1,290 RMB; in the US, the prices are $160 and $180 respectively, well above mainstream brands like Nike and Adidas.

On CEO Martine Hoffmann has repeatedly emphasized the brand’s “premium feel” in various settings. In an interview, he mentioned: “Becoming the world’s top high-end sports brand is On’s vision. For customers, high-end is not just a slogan but an emotional experience and a symbol of status.”

To maintain its premium positioning, On has collaborated with luxury brand Loewe for five years, becoming popular among young consumers worldwide. On management revealed at an earnings call on March 3: “We just launched the eighth wave of products, with Cloudsolo priced at $750. At this high-end price point, we see sustained and strong demand.” Notably, On rarely offers discounts.

The most iconic symbol of On’s deep connection with the middle class is the endorsement by tennis legend Roger Federer. In 2019, Federer invested over $5,000 to join On, participating in designing the THE ROGER tennis shoe series and deeply involved in brand strategy.

Tang Xiaotang, founder of Fashion Chinese, told Times Finance: “In terms of health pursuit and athletic performance, people also need something to prove themselves. On is a status symbol. It no longer just signifies wealth but also health and self-discipline.”

However, Times Finance notes that many who wear On may not actually love running.

“Most customers in the store are older women who don’t seem very active,” said Philin (pseudonym), a veteran On consumer. She admitted she doesn’t usually run but bought a pair after seeing a popular blogger wear them. “They go well with dress pants and jeans, so I just keep wearing them.”

On social media, phrases like “middle class considers On as FootHealth” and “On pairs well with business attire, just bring one pair for business trips” are common. A North American sports industry insider told Times Finance: “Most people wearing On are middle-class in finance.”

On’s CloudTec® midsole design is a visual signature. It’s not a solid foam but a series of independent, pipe-like modules. Industry insiders comment: “Many brands have used physical shock absorption, but On makes it a visual communication symbol.” This gives On a recognizable identity—like Nike’s Air or Adidas’ Boost—yet completely different.

Today, the list of elites wearing On continues to grow. British Princess Kate, Zhang Lei of Hillhouse Capital, JD.com founder Liu Qiangdong, Xiaomi founder Lei Jun have all been seen wearing On. Jay Chou has also posted multiple photos on social media sporting On on tennis courts.

Competing with Lululemon

Over the past decade, On has gradually conquered the global middle class with a single running shoe, but to become the top high-end sports brand, shoes alone are not enough.

Recreating the business path of yoga apparel leader Lululemon may be the future direction for On.

In recent years, reports from UBS, Morgan Stanley, and Goldman Sachs have repeatedly compared On to Lululemon. “On and Lululemon are essentially large aggregators of high-end middle-class consumers,” said Tang Xiaotang. “Most of their users are not hardcore athletes; there’s a high overlap. Both brands sell an active lifestyle as a luxury.”

Six years ago, when On launched its Federer collaboration shoes, management repeatedly emphasized the “all-day wear” concept. This is similar to the early idea of Lululemon founder Chip Wilson: a pair of yoga pants that can be worn for exercise, hiking, parties, and work.

Image source: Visual China

From 2018 to 2019, Lululemon launched a diversification strategy into men’s apparel, footwear, and multiple sports scenarios. Three years later, On also declared “more than just running,” expanding into apparel, tennis, training, and other full-scenario product lines, positioning apparel as a “second growth engine.”

Today, the direct competition between the two brands is already playing out on shelves and in malls.

On’s main footwear products are priced between 1,000 and 2,000 RMB, with apparel ranging from 800 to 1,500 RMB; Lululemon’s running shoes are mostly priced at 1,380 RMB, with yoga pants, sports bras, and jackets also mainly in the 800–2,000 RMB range. They are almost in the same price band.

Although On’s store count still lags behind Lululemon and it doesn’t rely entirely on DTC direct sales channels, their distribution channels highly overlap.

First-tier cities are the focus for both brands. According to official channels, On currently has three directly operated stores in Guangzhou, located in IGC Tianhui Plaza, Tianhuan Plaza, and Taikoo Hui; Lululemon also has stores in these malls, plus two more in Poly World Taikoo Li and Baiyun Airport. In Shanghai, On has 13 directly operated stores, including locations in Minhang MixC, West Bund Dream Center, and Huamao Plaza, many of which are also home to Lululemon.

The explosive growth in emerging markets like China supports On’s high-growth logic. From 2022 to 2025, net sales in China and Asia-Pacific soared from 80 million Swiss francs to 511 million Swiss francs. The year-over-year growth rates for On in Asia-Pacific from 2023 to 2025 are 75.9%, 84.5%, and 96.4%, respectively.

Image source: Visual China

Tennis enthusiast Ethan shared with Times Finance: “More and more women around me are wearing On. They like sports and care about stylish outfits, with high spending power and willingness. On’s looks and functionality hit the right spot for this group. On feels more outdoor, while Lululemon is more indoor, but their consumer groups are the same.”

Tang Xiaotang believes that competition between On and Lululemon will become more intense in the future, but it’s unlikely to be a zero-sum game. “Lululemon’s customers are still buying Lululemon, but some will start trying On.”

Data shows that in 2025, On’s apparel sales increased by 68.2% year-over-year, and accessories sales surged 124.1%.

Lululemon starts discounting, On ramps up store openings

However, Lululemon, On’s comparable brand, seems to be facing difficulties.

Last October, Lululemon founder and largest shareholder Chip Wilson published a full-page ad criticizing the brand’s stagnating product innovation, over-commercialization, talent loss, and blurred core values.

Latest performance guidance indicates that in its core market, the Americas, Lululemon expects revenue to decline by 1%–2% in fiscal 2025, with US revenue possibly down 2%–3%. According to Seeking Alpha, Lululemon’s stock has fallen 50% over the past year. Meanwhile, the brand’s discount activities have become more frequent.

Despite continuous revenue growth, On’s net profit has also declined. In 2025, On’s net profit fell 15.9% year-over-year to approximately 204 million Swiss francs, with a profit margin of 6.8%.

Management explained: “High profit margins are not necessarily good. If margins are too high, it may mean the company has lost its creative direction and doesn’t know where to spend money. We aim for steady profit margin growth and will reinvest excess funds into brand marketing, team building, and product innovation.”

At the same time, On’s ambitions in China are clear: opening 100 stores by 2026, with the Chinese market accounting for 10% of global sales. Apparel and women’s business are key growth areas for On.

But shifting consumer perception from shoes to apparel is not easy. Tang Xiaotang pointed out: “Why is it hard for On to do shoes? Low investment, low sales, and reluctance to invest. The same applies to apparel. Demand alone doesn’t mean you can meet it immediately. Releasing demand too quickly isn’t good for long-term expectations, and supply chain issues are huge.”

Young On is rapidly “learning” in supply chain, R&D, and innovation. Over the past five years, On’s R&D team has grown tenfold, with over 400 experts, sports scientists, and AI engineers at its Zurich lab. In 2026, On will open a LightSpray robotic shoe upper factory in Busan, South Korea, aiming to increase global LightSpray upper capacity by 30 times. However, social media complaints about product quality are also common.

In 2021, On went public on the New York Stock Exchange. Today, On’s market value is about $14 billion, nearly 100 billion RMB.

Looking ahead to 2026, On is at a delicate crossroads: surpassing 3 billion Swiss francs in scale with continued growth; China’s market booming, but competition in running shoes and sports apparel intensifying; apparel and women’s segments growing rapidly but still far from becoming the second pillar.

From a single running shoe to a diversified brand, from Europe and America to global markets, On is rewriting the story of Lululemon’s growth. Whether it can avoid Lululemon’s later growth pitfalls remains to be seen. In the battle for middle-class wallets, On has just secured its entry ticket.