On Running, the performance sportswear company from Switzerland has its ambitions soaring by the day. Swiss maestro Roger Federer is its global brand ambassador and has a 3% stake in the company as well. His investment is valued nearly at $330 million. After a great start in new markets, On has now set its sights at achieving sales worth a whopping $3.8 billion that will see it give serious competition to the likes of Michael Jordan endorsed Nike and Lionel Messi’s Adidas.
It is safe to say that On made a masterstroke with the Federer partnership as they netted sales of $1.93 billion this year at a gross profit margin of 58.5% according to a report in Bloomberg. They have grown globally and have captured a competitive and massive US market that is dominated largely by Adidas and Nike. On is now planning to double its sales to $3.8 billion by 2026 and has a 3-pronged plan to go about the same.
Roger Federer helps On challenge Adidas and Nike
Lionel Messi has played a vital role in helping Adidas post sales of $14 billion in 2023. On the other hand, with Nike merchandise named after him, Michael Jordan has ensured the brand’s sales are almost at $30 billion. In the same way, Roger Federer is synonymous to On, as they have taken the American market by storm.
On has benefitted from larger public awareness of fitness-specialized shoes and acceptance of casual fashion. Having stores of their own with a specialization towards shoes of few kinds alongside creating a community has helped them tremendously. On’s USP of having a tubular sole as a cushion has worked clearly.
Roger Federer’s entry helped them get a footing in the tennis market. On is now all set to focus more on going bigger in tennis with Federer being their biggest name and the likes of Iga Swiatek and Ben Shelton joining their ranks too. Secondly, the global fitness-related market is increasing, which is beyond sports and has several physical activities from the West and East both that have gained tremendous popularity. Through these categories, On has able to report on average 20% of profitability year after year.
Lastly, On is adamant that it is looking for massive expansion in China, the second-largest market in the world after the United States. Out of the $3.8 million sales that they are targeting globally, at least $380 million should come from the Asian country for them. On might aim to cash in on Roger Federer’s popularity in the country to go about that as well.
How much is the Federer net worth?
The Roger Federer net worth is estimated to be between $550-600 million according to multiple media reports. Federer has cleverly divided his shoe sponsorship from his apparel one. The Swiss star has easily earned nearly 50-100 times his investment at On, which took place 4 years ago.
Roger Federer remains the only tennis player in the world to have earned more than 1 billion dollars just from the game. He also owns Team8, a sports management company through which he runs On amongst his other business ventures.
