On Running, backed by Roger Federer, is reportedly preparing to open its first store in Hong Kong. The Swiss company has faced a slowdown in sales in China and hence, is looking at the nation’s special territory to emerge as a new hotspot. Interestingly, Uniqlo, the Japanese athleisure and fashion brand, which Federer endorses, also has looked at China as it’s biggest overseas market and often gets the maximum amount of its global annual sales from the country.
With Roger Federer having often having travelled to China firstly as a professional tennis player and then as a businessperson, the Swiss legend is aware of how business is done in the second-most populated country in the world. As a result, On will have a massive advantage if they take in Federer’s inputs to develop the brand there, after its successful stay in the United States so far.
After seeing On shoes grow popular in Switzerland firstly, Federer came on board as a brand ambassador and design partner. He also became an investor with a 3% stake in the company. His share is currently valued beyond a whopping $300 million.
Focusing on local growth until 2020, On used the global slowdown caused by the COVID-19 pandemic to accelerate their growth. From serving the Swiss markets and only some pockets of Europe, they went global. They currently have 32 of their own shops, with the flagship store in Paris. On stores are present in the USA and China as well, in addition to more European countries.
On is one of the many companies feeling the effects of sales dropping in China. Hence, to combat this and potentially set up a new base, the sportswear company has turned to Hong Kong, Special Administrative Region of China. As per Bloomberg, the top executives have already finalised the location of the store.
Hong Kong’s first On store will come up in a 3,000-square-foot shop in the trendy H Queen’s building located in the Central Business District. The company will shell out an estimated $76,700 in rent per month. This is double what the previous tenant paid but still less than the peak prices before the pandemic. On refused to share any immediate comments on the speculated development.
Fans in Hong Kong can currently purchase sneakers and apparel from the company partly owned by Roger Federer from licensed distributors and retailers. However, the experience of a company store promises to be special and memorable, unmatched by other third-party shops.
Roger Federer and On going to Hong Kong on the back of its ATP 250 event returning
The expansion of On to Hong Kong comes at a great time. The region’s only ATP Tour event, the Hong Kong Open, returned after over two decades. The ATP 250 tournament saw big names like eventual champion Andrey Rublev, Karen Khachanov, Frances Tiafoe, and Arthur Fils feature.
Hence, as the event reignites interest in tennis in HK, On’s store could serve as the perfect outlet for fans to go and get their fill of the sport. Before 2024, the Hong Kong Open was last held in 2002. This meant, unfortunately, people there were never able to witness Roger Federer as a player.
Great icons like Rod Laver, Jimmy Connors, Pete Sampras, and Andre Agassi have won the tournament before. This proves the SAR has the foundations for a strong tennis culture. While Federer may not have been present as a player, fans here could see him as an investor and ambassador for On. It could lead to great success for the company.
