On athletic shoes: Olivier Bernhard and Caspar Coppetti

Episode Summary

Executive Summary: This episode traces how On Running grew from a quirky garden-hose prototype into a global athletic brand. Founders Olivier Bernhard, Casper Coppetti, and David Allemann combined elite sports credibility, marketing expertise, and relentless commitment, surviving near-failures in manufacturing and early skepticism. A pivotal turn came when Roger Federer joined as a partner, helping transform On from a niche running company into a broader sportswear brand.

Main Topics: Founders' backgrounds and complementary skills (Priority: 5/5): Olivier Bernhard brought elite triathlon experience and product intuition; Casper Coppetti brought branding, strategy, and business skills; David Allemann contributed senior marketing expertise. Their mix of athlete insight and commercial know-how shaped the company. Origin of the shoe technology (Priority: 5/5): The product began as a prototype created by engineer George Brunswiler using cut pieces of garden hose glued to the bottom of a Nike shoe. Bernhard immediately sensed the softer landing and spring-like feel, inspiring the concept for a new running technology. Commitment and risk-taking (Priority: 4/5): The founders made an unusually strict shareholders' agreement requiring full-time commitment and forfeiture of shares if any founder pursued outside work. They saw total dedication as necessary to avoid failure through lack of effort. Early commercialization and brand building (Priority: 4/5): After rebranding from GNL to Neon and then to On, the founders tested prototypes, pitched retailers directly, won a major trade-show award, and raised early orders and capital. Their premium, minimalist aesthetic helped distinguish the brand. Manufacturing crisis and survival (Priority: 5/5): A Chinese factory bankruptcy threatened the company with 30,000 pairs of unfinished shoes stuck in limbo before Chinese New Year. The team improvised to retrieve production and keep the business alive, reinforcing the need for resilience. Roger Federer partnership and category expansion (Priority: 5/5): Federer was first spotted wearing On shoes organically. When he later proposed collaborating, the founders structured a trust-based partnership that helped On move beyond running into tennis, training, trail, hiking, and lifestyle footwear. IPO, scale, and mission (Priority: 4/5): On went public in 2021 at a $6.5 billion valuation while preserving founder control through a dual-class structure. The founders stress that the company is still early in its journey and is now focused on innovation, discipline, and sustainability.

Key Arguments: Elite athletic credibility mattered: Bernhard's status made the product believable to runners and sponsors, while Coppetti's marketing background helped translate performance into a brand. The company succeeded because the product was genuinely different; its visible technology and soft ride created strong word-of-mouth and polarizing reactions that drove interest. Total founder commitment was essential, so the shareholders' agreement punished outside employment and aligned incentives around one goal. On won by pursuing what seemed 'impossible' rather than competing head-on with giants like Nike on their terms. Manufacturing and business setbacks were existential, but each crisis strengthened the founders' confidence and operational discipline. Roger Federer's involvement changed the company's trajectory from a specialized running brand into a global sportswear company. The founders prioritized independence and long-term control, which made the IPO acceptable only once they secured a dual-class structure. Sustainability and product innovation are central to the next phase, including ambitions for a carbon-neutral shoe without relying on offsets.

Data Points: Athletic footwear category size: $150 billion - Described as the approximate size of the global athletic footwear market. Company launch year: 2010 - On was incorporated on January 6, 2010. Initial founder cash investment: $150,000 each - Each founder contributed this amount to start the company; Bernhard contributed effort instead of cash. First trade-show orders: about half a million Swiss francs - Orders secured at ISPO shortly after launch helped validate the business and raise funding. First production run: 8,000-10,000 shoes - Early shoes were manufactured in Busan, South Korea. First-year manufacturing crisis: 30,000 pairs - A Chinese factory bankruptcy put this season's production at risk. Revenue milestone: $10 million - The founders expected this to be a major target and reached it by 2013. First profit year: 2014 - The company says it broke first profit in 2014 and has been profitable since. Pre-Federer revenue: about $160 million - Revenue level when Federer entered discussions about partnering with On. IPO valuation: $6.5 billion - On's market valuation at its 2021 public listing. Employee count: 2,000 soon 3,000 - Approximate company size discussed near the end of the interview. Manufacturing/logistics workforce: about 80,000 - Estimated additional people involved across the broader supply chain. World championship win tied to On: 2013 - Frederik Van Lierde won Kona in a prototype On shoe, boosting credibility. Years to reach 10 million shoes/sales context: 2012-2019: 4 million pairs sold - The founders discussed selling 4 million pairs over this period while scaling globally.

Pivotal Quotes: "if we're going to fail, we're not going to fail for lack of effort. We're going to put it all on the line and see how far we get." — Casper Coppetti: Describing the founders' shareholder agreement and total commitment to the venture. "I felt like a cat." — Olivier Bernhard: His reaction after running in the garden-hose prototype and sensing the soft, springy landing. "Let's focus on the impossible." — Olivier Bernhard: Explaining On's philosophy of pursuing problems competitors see as too difficult to solve.

Implications: On's story shows that product differentiation, founder credibility, and resilience can beat incumbents even in capital-intensive industries. It also suggests premium design and athlete-led trust can expand a niche brand into a global platform.