Premium brands, health insurers, and drug developers are facing an outdated playbook.
On puts its premium strategy to the test
On is refusing to discount its shoes even as shoppers become more price-conscious and athletic footwear promotions pick up.
- The Swiss sportswear brand’s Q2 sales rose 13.5% to just over $1B despite keeping most products at full price, with adult shoes typically selling for $140 to $280.
- Meanwhile, wholesale growth slowed to 4.8%, as On intentionally limited shipments to retailers operating in a more promotional environment.
Betting that product innovation can do the work that discounts do for other brands, On’s gross margin reached 65.4% in the latest quarter, up from 61.5% a year earlier.
But with wholesale still accounting for nearly 58% of sales, On is balancing premium positioning against a retail environment that’s getting harder to navigate.
Gen Z routes around insurers
An Accenture survey of 1,200 consumers found younger health-plan members are losing trust in insurers — and increasingly turning to AI to navigate coverage instead.
- Trust among Gen Z and Millennial health-plan members fell 10.5% between 2023 and 2026, with just 46% saying they trust their payer.
- 69% of younger members who trust their insurer are comfortable using AI-powered health-plan services. But for those who don’t trust their insurer, use falls to 16%.
The issue isn’t simply whether insurers adopt AI. It’s whether consumers trust the company behind it enough to use it.
For payers, the opportunity is shifting from processing claims to helping members understand costs, navigate care, and make decisions — areas where younger consumers are already looking elsewhere.
FDA opens up on psychedelic trials
The FDA is signaling more flexibility in how psychedelic therapies could be studied and evaluated.
In a recent New England Journal of Medicine article, senior FDA regulators said the agency is open to alternative approaches for psychedelic trials to overcome challenges associated with studying the drugs, including alternative treatments and different doses.
After years trying to translate promising research into approved treatments, initial FDA approval may require a new regulatory framework — all while maintaining the agency’s standards.
