Issue link: https://viewer.e-digitaledition.com/i/907660
88 runninginsight.com © 2017 Formula4media LLC. On gaining a foothold in the U.S. While European markets like Germany, the U.K. and Switzerland, the home of On's global office, served the initial priority, On's leadership knew their fortunes as a company were ultimately linked to the U.S., a nation responsible for some 48 million running shoe purchases in 2016 according to figures from the National Sporting Goods Association. After getting its feet wet in Europe, On entered the U.S. marketplace in 2012 and soon after opened an office in Portland, OR, the nation's unofficial sportswear capital. Throughout the last five years, On has worked to gain a foothold in the U.S. with a resolute, singular focus on the run specialty channel. "We see the specialty running retailer as our main partner and super important for our credibility," Allemann confirms. While On touts the benefits of its highly differentiated Swiss technology and dis- tinctive design to running retailers, it also champions exclusivity, price stability and selective distribution. With On's footwear models on a 3-5 season lifecycle and closely monitored distribution, Allemann says retailers are not moved to discount the brand's footwear or price match, which drives higher margin sales. Today, On claims the highest-selling average price of any footwear brand at $130.35, outdistancing Hoka ($126), Adidas ($124) and ASICS ($117). Four out of 10 On shoes, in fact, sell at or above $140. A t P o t o m a c R i v e r Running, an eight-store chain based in Washington, D.C., chief operating officer Ryan Long says On footwear has the lowest markdown percentage at the store reg- ister, holding its price better than any footwear brand the company carries. "They've shown integ- rity," Long says of On, "and that's something we really appreciate." But On does plenty more to service its run specialty partners ranging from an exclusive run spe- cialty model (the Cloudflow) to featuring a dealer locator on its website that allows consumers to book a fitting appointment di- rectly with their local On-approved retailer. On Cloud ON (continued)