With Nike leading the way, how did On Running rewrite the rules of the running shoe game? | Zhiliao
Text | He Zhexin
Editor | Qiao Qian
When Olivier Bernhard told Nike and Adidas about his initial idea of the ideal sports shoe in his mind, both companies rejected the proposal.
“Their responses sounded like, ‘If it wasn't baked in our kitchen, it can't be that good,’” the retired professional athlete recalled to Bloomberg. This was the biggest motivation that prompted him to develop his own brand.
The later - circulated story goes that one day in 2010, Bernhard and a friend, an engineering designer from Zurich, cut off the bottom of a Nike shoe and then glued sections of garden hoses to the sole. He walked around in his backyard wearing it and felt that the cushioning and rebound force from the sole were “amazing.” This pair of shoes was the prototype of On's Cloudtech.
The On Cloud 5 is the closest to the design prototype and is also one of the best - selling shoe models.
In 2024, On's sales reached $2.5 billion. For Adidas, this figure was $25 billion, and for Nike, it was $50 billion. This young Swiss brand holds a 2% share in the global sports market, but its 30% growth is enough to make any competitor take notice. Analysts always can't help but emphasize its unique “macaroni” sole when talking about On. “Walk into any Foot Locker, and On's shelves are always the most eye - catching.”
In the sports shoe industry, technological innovation doesn't always come from the giants. Bernhard's experience is not an isolated case. Many breakthrough ideas are not accepted by the market in the early stage, but it is precisely these overlooked concepts that ultimately drive the evolution of the industry.
Therefore, On's success is not just a startup story but also a milestone event in the evolution of sports shoe technology. To understand how Cloudtech has changed the running shoe industry, we need to review the development context of sports shoe technology, from the birth of Nike's Air cushion to the application of various innovative materials today. How has running shoe technology evolved? In which aspects does On's innovation surpass traditional designs? In which directions might running shoe technology develop in the future?
Opening a Small Window in the Sole
Before the emergence of On, technological innovation in sports shoes was more or less a Nike story.
In the 1970s, Frank Rudy, an engineer from NASA in the United States, got inspiration from the air cushions used in airplane seats. He believed that this technology could be applied to sports shoes to help athletes relieve the impact during exercise. At that time, even professional track - and - field athletes ran in thin - soled shoes, and injuries were inevitable in the long run.
The basic principle of this design is to absorb and disperse external impact forces through an inflated airbag. The airbag is installed in the sole, and it absorbs the impact generated when the foot hits the ground through the compression and expansion of the gas, thereby reducing the pressure on the feet and knees. Compared with traditional sole materials (such as rubber, foam, etc.), the air cushion can provide stronger shock - absorbing effects.
Schematic diagram of the Nike Air patent
To realize this idea, Rudy found a way to pump gas into a bag and then incorporate it into the sole. Such an inflated airbag looked like a mini - transparent inflatable boat. However, Rudy encountered the same problem as Bernhard when promoting this idea: no one was willing to buy it.
In 1977, Rudy knocked on Nike's door. He and his business partner, Bob Bogert, convinced Phil Knight, the then - president of Nike, to have a short pitch meeting with them at Nike's headquarters in Oregon.
Knight recalled in his memoir, Shoe Dog: “You could tell right away that he (referring to Rudy) was a mad professor, but it wasn't until many years later that I knew how crazy he was (he meticulously recorded his sex life and bowel movements).”
Knight called in Tinker Hatfield, a designer with only four years of work experience at that time. Hatfield spent almost a year creating the first Nike Air Tailwind, the first running shoe to apply Air technology. However, it looked no different from an ordinary sports shoe on the outside - at this time, the Air cushion was still hidden inside the shoe.
Nike Air Tailwind
This Nike Air Tailwind was priced at $50 at that time, made in Japan, and was Nike's most expensive sports shoe.
The subsequent story is written in Nike's official brand history: Hatfield visited the Pompidou Center in Paris. The exposed steel frames and pipelines of this art museum were painted in colors such as red, yellow, blue, green, and white to distinguish their functions, which was completely different from other buildings that commonly used concrete walls at that time. This inspired him. Hatfield then returned to the company and, despite everyone's opposition, opened a small window in the sole - the Nike Air Max Zero was born. The “visible” air cushion has since become one of the most eye - catching symbols of the Air series. The Nike Air series has also become a symbol of the new Nike and has dominated the sports shoe industry since the 1990s.
The history of Nike's visible insoles
If things had developed in this way, Nike would always have been at the forefront of any sports shoe innovation. However, the course of history deviated a bit: after the emergence of Air Jordan, Nike witnessed the marketing power of super - idols, and their innovation on this basketball shoe was not as bold as expected. If you look through the Air Jordan calendar, you will find that the most changes are in the colorways rather than other aspects - this way, they can sell more shoes while changing the original design as little as possible.
The 15th - generation Air Jordan adopted a bolder design but suffered its first setback in AJ history.
“For many years, we have always regarded ourselves as a production - oriented company, which means we have put all our energy into designing and manufacturing products... Now the most important thing we need to do is to promote our products,” Knight said in an interview in 1992.
Nike's “conservative” market - oriented strategy has even affected its peers: Asics' GEL shock - absorbing technology launched in 1986, Adidas' Boost, and Reebok's honeycomb - shaped sole all seem to be improvements of the Air Max 1 - although their performance may vary.
After the pandemic, people began to pay attention to daily health, and the sports trend has shifted from basketball courts to city roads and athletic tracks. Data from market research company Circana shows that performance running shoes were one of the fastest - growing segments in the sports shoe market in 2024, with a 6% increase compared to the previous year.
When consumers' attention is focused on running again, what will be different about this round of innovation?
Running as a Lifestyle
Every Wednesday, Thursday, and Saturday, Daniel Schumacher takes about an hour's train ride from the center of Munich to Tegernsee, a town 50 kilometers south. He will hike or jog around this scenic Alpine town for half a day, have a cup of espresso, and then take the last train back to Munich.
Schumacher got a free pair of Cloudmonster shoes at a running sponsorship event held by On here not long ago. The “macaroni” on the sole is arranged in a honeycomb pattern, making it a rather futuristic running shoe.
Schumacher has never taken off his Cloudmonster shoes since he ran a race in them. He told 36Kr that the comfort and design of the Cloudmonster were unexpectedly suitable for him. Due to his occupation (he is a teacher), Schumacher needs to stand for long periods. When standing, the sole of the Cloudmonster is not too soft and provides a certain amount of support, while it can provide appropriate rebound force when walking quickly or running.
On Cloudmonster
At On's new - season earnings conference, Marc Maurer, the co - executive chairman, also mentioned how doctors, teachers, nurses, and elderly consumers in Europe and Japan love “using our shoes as daily footwear.”
Compared with team and competitive sports, running has a bit of a “neoliberal” flavor. Since it has no strict requirements for venues and some people emphasize the combination with the natural environment, it also fits in with the individualistic trend that has emerged in East Asian societies in the past decade, so it has become widely popular. Li Junrong, a sociology lecturer at the Hong Kong Polytechnic University, believes that through the commercialization of running, consumers can gain a sense of identity.
Lee, who lives in Hong Kong, always changes into a pair of running shoes after work and runs from the Hong Kong - Macau Ferry Terminal in Sheung Wan to the Sun Yat - sen Memorial Park. He recently noticed that On's logo is appearing on the feet of more and more friends and colleagues. A friend who often runs in the Standard Chartered Marathon recommended the Cloudstratus to him (it is similar to the Cloud 5 but has a thicker and more integrated sole, suitable for long - distance jogging). They used to wear Nike, Adidas, and New Balance, “but this pair of shoes is the most comfortable and the fastest.”
In July last year, On opened its first store in Central, Hong Kong. Lee told us that the smooth and simple design of the store “is like the Apple of the running world,” which left a deep impression on him.
“Our re - creation of running shoe products is a bit like what Coco Chanel advocated for women's trousers more than half a century ago - it's about the self rather than just the technology itself,” said David Allemann, the co - founder and co - executive chairman, in a podcast. He further explained, “Sports products used to be only available in sports equipment stores. As more people associate sports with their lifestyle, performance innovation should also take aesthetic perception into account more.”
“Our customers usually enter the store for only three reasons,” the manager of a local Berlin chain sports brand store told us. These three factors are comfort, pain relief, or improved sports performance. “(They) may not know where a brand's innovation lies. At this time, the color and shape design of the product are the biggest attractions.”
Industry insiders believe that On's success lies precisely in this. They have brought the focus of innovation back to “visibility” (another brand that does this is HOKA). Because even for the most high - performance products, at least 90% of consumers only use them for walking. “If your product needs to highlight comfort, then it should look comfortable.” On's iconic cloud - shaped shock - absorbing structure emphasizes lightness and softness through its visually hollow design. Consumers can feel the difference from ordinary shock - absorbing shoes just by looking at the appearance.
Last year, On launched a spray - woven sports shoe called Cloudboom Strike LS that looks like a sock. Matt Powell, a shoe - industry consultant from consulting firm Spurwink River, believes that although there is currently no possibility of the Cloudboom Strike LS disrupting the existing sports shoe market pattern and consumers may not like its appearance, “it's always better to launch a distinctive and sensational product than a mediocre one.”
The integrated woven structure of the Cloudboom Strike LS easily gives people the feeling of a close fit to the foot.
2025 is a crucial year for On. It needs to sell its products in more countries while maintaining its professionalism among its core consumers. To avoid making the brand seem “available to everyone,” On closed 200 stores in some small European cities last year and at the same time accelerated the opening of large - scale stores and direct - operated stores in China and the United States - these two places have the most enthusiastic consumers who are willing to try new things, and a pair of running shoes priced at $200 (about 1,440 yuan) is not a luxury for them.