How I Built A $7 Billion Shoe Company Called On | Founder Effect
CNBC Make It・15 minutes read
Former triathlete Olivier Bernhardt transitioned from sports to entrepreneurship after developing a unique running shoe concept with garden hoses, leading to the successful establishment of On. Roger Federer's investment in On resulted in significant sales growth, with projections of over $763 million in revenue for the current year.
Insights
- Olivier Bernhardt's journey from a struggling athlete to a successful entrepreneur with On highlights the transformative power of persistence and passion, culminating in the company's remarkable growth and global impact.
- On's strategic decisions, from winning industry awards with innovative prototypes to securing investments for expansion and athlete collaboration, underscore the importance of quality-driven product development, strategic partnerships, and a customer-centric approach in achieving long-term success and market dominance.
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Recent questions
How did Olivier Bernhardt transition from sports to entrepreneurship?
Olivier Bernhardt transitioned from professional sports to entrepreneurship after being introduced to a unique running shoe concept involving garden hoses attached to the soles by a friend. This idea sparked his interest and led him to create On, a successful running shoe company.
What role did Roger Federer play in On's success?
Roger Federer's investment in the running shoe company, On, significantly increased sales and contributed to the company's success. His partnership with On led to the creation of customized tennis shoes for different court surfaces, showcasing the company's commitment to innovation and athlete collaboration.
How did On overcome initial challenges and grow?
On faced challenges with cash flow initially but received investments from angel investors, enabling expansion into 60 countries and the development of innovative running shoe designs. The company's focus on product quality and collaboration with athletes contributed to its growth and success.
What led to On's decision to go public?
On's decision to go public was driven by a desire to compete with industry leaders like Nike and Brooks, secure financial resources for growth, and maintain control over company governance. The successful IPO in 2021 raised $746 million and valued the company at $7.3 billion.
What is On's vision and approach to business?
On's vision is to support athletes and create high-performance footwear. The company emphasizes collaboration and competition, focusing on creating the best product rather than attacking competitors. By starting small, prioritizing product quality, and expanding gradually, On continues to grow and expand its market reach.
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Summary
00:00
From Athlete to Entrepreneur: On's Success Story.
- Olivier Bernhardt, a former triathlete, transitioned from professional sports to entrepreneurship after a friend introduced him to a unique running shoe concept involving garden hoses attached to the soles.
- Roger Federer's investment in the running shoe company, On, led to a significant increase in sales, with projections of over $763 million in revenue for the current year.
- Olivier's journey from a struggling athlete to a successful entrepreneur began with his first professional race win, earning him $1,000, and culminated in two world championships and six Ironman titles.
- After retiring from professional sports, Olivier founded a coaching company but couldn't shake the idea of creating a better running shoe, leading to the inception of On in 2010.
- On's initial prototype, the Cloud Racer, won the Gold Award at a sports exhibition in Europe, propelling the company's growth and attracting orders for 2,000 pairs of sneakers.
- The company faced challenges with cash flow but received investments from angel investors, enabling expansion into 60 countries and the development of innovative running shoe designs.
- Roger Federer's partnership with On resulted in the creation of customized tennis shoes for different court surfaces, showcasing the company's commitment to innovation and athlete collaboration.
- Despite initial setbacks due to the pandemic, On's sales tripled in 2020, leading to a successful IPO in 2021 that raised $746 million and valued the company at $7.3 billion.
- On's decision to go public was driven by a desire to compete with industry leaders like Nike and Brooks, secure financial resources for growth, and maintain control over company governance.
- With over a thousand employees and a strong presence in North America, On continues to expand its market reach and fulfill its vision of supporting athletes and creating high-performance footwear.
14:04
"Collaboration over competition in product development"
- Philosophy of collaboration and competition discussed
- Emphasis on not attacking competitors but focusing on creating the best product
- Mention of starting small and slow, prioritizing product quality over numbers
