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.
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.