July 12, 2022 - News

On Debuts Recyclable Sneaker Subscription

These kicks go on and on and on.
On

Swiss performance running brand On debuted its recyclable sneaker subscription, seeking a lower carbon footprint and higher recurring revenue.

For context: Announced way back in 2020, On’s $29.99/mo. service, called Cyclon, lets consumers ship back pairs of the company’s bio-based shoes for a fresh, identical set. The returned shoes are melted down to raw materials to repeat the process.

What’s new: On just began shipping its most recyclable shoe ever, the Cloudneo, to US subscribers. Minimalistic, undyed, and made with modified castor beans, the brand says the 100% recyclable shoe will create a circular economy for its manufacturing process.

Planet + performance. Capturing the conscious consumer, On is making an impact with younger generations, especially Gen Z.

With an eco-friendly approach to high-performance sneakers, the publicly traded company beat expectations in Q1 in the face of inflation and supply chain uncertainty.

  • On shipped 1M shoes in the month of March, a first-time milestone.
  • Q1’22 revenue rose 67.9% to $237.3M, crushing analyst estimates of $167.8M.
  • The company expects full-year revenue north of $1B, a 44% YoY increase.

On a tear, co-founder Caspar Coppetti said the brand is “winning market share at an accelerated pace” across the globe. Using its open-ended subscription—and entering new categories with its ultra-cushioned Cloudmonster shoe and ladies Active Bra—On wants to be runners’ whole world.

Bottom line: Casual runners (under 10mi/week) typically spend a year or less in their running kicks, meaning consumers will effectively be paying $350+ for a pair if taken to maximum wear. But with sustainability and peak performance both trending, planet-friendly shoes may be worth the price.

Ryan Deer
Ryan Deer
The future of health and wellness in one newsletter

Subscribe for insights on the wellness economy, gyms and studios, preventative healthcare, wearable tech, and more

No thanks.