Swiss brand On is becoming a strong competitor in the global sportswear market. It sells premium athletic shoes and apparel, and its net sales grew by more than 40% to 726.6 million Swiss francs ($869 million) in the quarter ending March 31, compared to the previous year.

Experts say On has gained market share from big brands like Nike and Adidas by offering unique and appealing shoe designs that stood out to customers. Aneesha Sherman from Bernstein said On’s fresh look attracted consumers, helping the company grow quickly after its 2021 public offering.

During that time, Nike was struggling with lower sales and less innovation, while Adidas faced challenges after ending its partnership with Kanye West. Nike and Adidas still hold 58% of the global market, while On has about 3%. However, On’s recent earnings growth has been faster than both companies.

Nike is now working on a turnaround under its new CEO, Elliott Hill, which may create more competition for On. Additionally, On faces tariff risks since about 90% of its sneakers are made in Vietnam, which might be hit by new U.S. import duties.

The video in the article explains how On plans to compete with bigger brands and manage tariff challenges.