1
00:00:02,520 --> 00:00:05,520
Speaker 1: The shape of the on Athletic shoe is unique. It

2
00:00:05,559 --> 00:00:09,520
Speaker 1: can't be mistaken for any other brand. This is a cloud.

3
00:00:10,320 --> 00:00:14,160
Speaker 1: It's the key to unlocking your running potential and.

4
00:00:14,360 --> 00:00:16,560
Speaker 2: If you look at it, it truly stands out.

5
00:00:17,560 --> 00:00:20,360
Speaker 1: The structure of on C suite is just as distinctive.

6
00:00:20,640 --> 00:00:23,560
Speaker 1: Starting at the top with a pair of CEOs.

7
00:00:23,760 --> 00:00:26,439
Speaker 3: Well, we realized very early on is if you're adding

8
00:00:26,680 --> 00:00:32,199
Speaker 3: different capabilities to each other and you do that as equals,

9
00:00:32,360 --> 00:00:35,960
Speaker 3: then this leads to better outcomes.

10
00:00:36,000 --> 00:00:38,960
Speaker 1: Mark Maurer joined on as Chief operating Officer in March

11
00:00:39,000 --> 00:00:43,839
Speaker 1: twenty thirteen. Martin Hoffman arrived as CFO that July. In

12
00:00:43,880 --> 00:00:47,520
Speaker 1: twenty twenty one, they jointly assumed the CEO role.

13
00:00:47,880 --> 00:00:51,680
Speaker 4: We are a friend that needs to be excellent in

14
00:00:51,800 --> 00:00:55,720
Speaker 4: designing product, in innovating product, but also in shipping millions

15
00:00:55,720 --> 00:00:58,600
Speaker 4: of parcels from A to B in the most efficient way.

16
00:00:58,680 --> 00:01:02,280
Speaker 4: So we need to have very different mindsets and very

17
00:01:02,320 --> 00:01:07,080
Speaker 4: diverse people. Marcus different strengths. I have different strengths, and

18
00:01:07,200 --> 00:01:08,520
Speaker 4: if you take us together, you.

19
00:01:08,600 --> 00:01:09,319
Speaker 2: Just get more.

20
00:01:09,440 --> 00:01:12,720
Speaker 1: Have you had have there been areas of the business

21
00:01:12,720 --> 00:01:15,600
Speaker 1: where you've had disagreements as co CEOs? Have you always

22
00:01:15,640 --> 00:01:18,000
Speaker 1: been of one mind or have you wanted to take

23
00:01:18,040 --> 00:01:19,200
Speaker 1: things in different directions?

24
00:01:19,400 --> 00:01:22,440
Speaker 3: Yeah, I mean absolutely. I think it's that's the strength

25
00:01:22,480 --> 00:01:25,480
Speaker 3: that we're basically able to problem solve and also disagree

26
00:01:25,480 --> 00:01:28,360
Speaker 3: on topics. I think what we have with each other

27
00:01:28,520 --> 00:01:29,679
Speaker 3: is just a lot of trust.

28
00:01:29,800 --> 00:01:33,319
Speaker 4: Sometimes we really argue in a meeting with a lot

29
00:01:33,319 --> 00:01:36,400
Speaker 4: of other people present, so they actually see it's part

30
00:01:36,400 --> 00:01:38,720
Speaker 4: of our culture. We're also spending a lot of time

31
00:01:38,800 --> 00:01:42,360
Speaker 4: outside of work together and that that really helps to

32
00:01:42,720 --> 00:01:47,200
Speaker 4: purely talk about the things that that matters. And in

33
00:01:47,240 --> 00:01:48,920
Speaker 4: the end, we both want to do the same right.

34
00:01:48,920 --> 00:01:52,480
Speaker 4: We want to build a company for the future, and

35
00:01:52,920 --> 00:01:55,560
Speaker 4: so that goal is what unites us.

36
00:01:57,400 --> 00:02:01,600
Speaker 1: Companies with co CEOs are rare, but configuration is even

37
00:02:01,680 --> 00:02:06,640
Speaker 1: more unusual. Martin Hoffman also holds the CFO position. He

38
00:02:06,760 --> 00:02:08,840
Speaker 1: says his two jobs complement each other.

39
00:02:09,200 --> 00:02:12,120
Speaker 4: I actually feel the CFO makes you a better CEO,

40
00:02:12,440 --> 00:02:15,960
Speaker 4: and the CEO makes you a better CFO. Understanding what

41
00:02:16,000 --> 00:02:19,360
Speaker 4: you build as a CEO helps you to understand your numbers,

42
00:02:19,360 --> 00:02:22,480
Speaker 4: and understanding the numbers helps you what are the right

43
00:02:22,520 --> 00:02:23,440
Speaker 4: things to build.

44
00:02:24,240 --> 00:02:27,440
Speaker 1: On's emphasis on mind share, as much as market share,

45
00:02:27,600 --> 00:02:31,880
Speaker 1: has driven a decade of explosive growth. Hoffman has On's

46
00:02:31,960 --> 00:02:35,160
Speaker 1: finances in focus, but he also sees himself as the

47
00:02:35,200 --> 00:02:36,480
Speaker 1: steward of a story.

48
00:02:36,800 --> 00:02:38,400
Speaker 2: In the end, there is.

49
00:02:38,360 --> 00:02:43,960
Speaker 4: A strong psychology behind numbers, and you can make a

50
00:02:44,000 --> 00:02:46,720
Speaker 4: lot happen with numbers and the way you communicate and

51
00:02:46,800 --> 00:02:49,679
Speaker 4: you speak about numbers. So they can be very motivating,

52
00:02:49,760 --> 00:02:52,840
Speaker 4: they can be demotivating. They can keep a lot of

53
00:02:52,880 --> 00:02:55,160
Speaker 4: pressures away from the company, or they can put a

54
00:02:55,160 --> 00:02:56,160
Speaker 4: lot of pressure.

55
00:02:55,840 --> 00:02:56,560
Speaker 2: On the company.

56
00:02:56,680 --> 00:02:59,760
Speaker 4: Actually within the company, we're not talking so much about financials.

57
00:03:00,120 --> 00:03:02,600
Speaker 4: Talk to a highly creative people. They don't only hear

58
00:03:02,639 --> 00:03:04,520
Speaker 4: you talk about the numbers all the time. They want

59
00:03:04,560 --> 00:03:07,200
Speaker 4: to hear you talk about as a as a leader,

60
00:03:07,280 --> 00:03:09,600
Speaker 4: as a human, as someone who also loves the products.

61
00:03:09,800 --> 00:03:13,520
Speaker 4: And I also see this as my shop of giving

62
00:03:13,560 --> 00:03:17,119
Speaker 4: a clear, consistent story to the outside world, but then

63
00:03:17,360 --> 00:03:20,240
Speaker 4: at the same time having a story that is actually

64
00:03:20,280 --> 00:03:22,360
Speaker 4: building our culture internally.

65
00:03:34,960 --> 00:03:37,560
Speaker 1: On has come a long distance in a short time.

66
00:03:38,040 --> 00:03:40,200
Speaker 1: It was launched in twenty ten by a trio of

67
00:03:40,200 --> 00:03:44,040
Speaker 1: Swiss founders, including a former World Iron Man champion. A

68
00:03:44,160 --> 00:03:47,240
Speaker 1: caught on quickly as a brand for serious runners. By

69
00:03:47,280 --> 00:03:50,280
Speaker 1: twenty fourteen, the company had reached ten million dollars in

70
00:03:50,320 --> 00:03:53,680
Speaker 1: revenue and began to sell in the United States. From

71
00:03:53,680 --> 00:03:56,760
Speaker 1: there on, picked up the pace, developing new footwear lines

72
00:03:56,800 --> 00:04:02,000
Speaker 1: and diversifying into apparel. Swiss tennis legend Roger Federer took notice.

73
00:04:02,080 --> 00:04:05,160
Speaker 1: He became an investor and consultant, with his name on

74
00:04:05,240 --> 00:04:08,600
Speaker 1: the company's first line of tennis shoes. The twenty twenty

75
00:04:08,600 --> 00:04:12,560
Speaker 1: COVID pandemic sparked a boom in outdoor recreation, sending on

76
00:04:12,880 --> 00:04:16,000
Speaker 1: sales soaring they set the stage for a listing on

77
00:04:16,040 --> 00:04:20,360
Speaker 1: the New York Stock Exchange in September twenty twenty one.

78
00:04:22,120 --> 00:04:25,119
Speaker 5: The athletic industry has always been one of the best

79
00:04:25,120 --> 00:04:29,359
Speaker 5: industries within retail that only got better during COVID.

80
00:04:29,480 --> 00:04:32,480
Speaker 6: The barrier to entry for newer brands and disruptor brands

81
00:04:32,520 --> 00:04:35,039
Speaker 6: are lower than ever. What we're seeing from some of

82
00:04:35,040 --> 00:04:37,279
Speaker 6: the newer players is just more innovation. I think that

83
00:04:37,279 --> 00:04:38,640
Speaker 6: we're seeing it's a good time for some of these

84
00:04:38,720 --> 00:04:39,479
Speaker 6: brands to grow.

85
00:04:41,000 --> 00:04:43,520
Speaker 1: With just over a billion dollars in sales last year,

86
00:04:43,720 --> 00:04:47,960
Speaker 1: On's a relatively small player in a crowded category. Still

87
00:04:48,000 --> 00:04:49,960
Speaker 1: going public has made a difference.

88
00:04:50,240 --> 00:04:52,240
Speaker 3: I think it made us a better company, so it

89
00:04:52,480 --> 00:04:55,400
Speaker 3: challenged us, and you know, we decided to play in

90
00:04:55,440 --> 00:04:58,400
Speaker 3: the Champions League. We decided we wanted that scrutiny. It

91
00:04:58,480 --> 00:05:02,960
Speaker 3: brought huge opportunities obviously in terms of brand awareness as well.

92
00:05:03,880 --> 00:05:07,760
Speaker 1: Wall Street is certainly aware on and investors seem to

93
00:05:07,960 --> 00:05:08,880
Speaker 1: like what they see.

94
00:05:09,279 --> 00:05:11,560
Speaker 4: We want to build a company that is here to

95
00:05:11,600 --> 00:05:15,599
Speaker 4: stay this positive emotion of growing, but growing in a

96
00:05:15,640 --> 00:05:21,000
Speaker 4: meaningful way, from social impact, sustainability, how your product's resonating

97
00:05:21,000 --> 00:05:24,839
Speaker 4: with your customers. That's very important, and setting up that

98
00:05:25,000 --> 00:05:27,800
Speaker 4: framework is basically a core.

99
00:05:27,839 --> 00:05:28,520
Speaker 2: Of my work.

100
00:05:28,600 --> 00:05:30,800
Speaker 1: It sounds like you have to take shareholder demands and

101
00:05:30,800 --> 00:05:33,640
Speaker 1: sort of translate them into something that's going to be

102
00:05:33,760 --> 00:05:35,800
Speaker 1: motivating for the people who work for you. Is that

103
00:05:35,920 --> 00:05:36,560
Speaker 1: how it works?

104
00:05:36,680 --> 00:05:37,479
Speaker 2: Yeah, definitely.

105
00:05:37,560 --> 00:05:41,039
Speaker 3: The number is never the goal, and the growth should

106
00:05:41,040 --> 00:05:43,680
Speaker 3: allow us to do that in a sustainable way.

107
00:05:43,760 --> 00:05:46,279
Speaker 1: And so it can growth sometimes be too fast, yes.

108
00:05:46,160 --> 00:05:48,599
Speaker 3: It can. Well for us, it's important that we're kind

109
00:05:48,640 --> 00:05:52,120
Speaker 3: of bringing that exponential and huge growth of over sixty

110
00:05:52,160 --> 00:05:55,760
Speaker 3: percent year of year slowly down into what we call

111
00:05:55,800 --> 00:05:59,400
Speaker 3: a more durable growth going going forward over the next years.

112
00:06:00,920 --> 00:06:03,799
Speaker 1: On is setting its pace for a marathon, not a sprint.

113
00:06:04,200 --> 00:06:07,000
Speaker 1: It's confident in the strength of its technology, the cloud

114
00:06:07,000 --> 00:06:11,400
Speaker 1: tech cushioning system, invented and patented by its founders. In

115
00:06:11,480 --> 00:06:14,359
Speaker 1: many ways, On likes to identify as a tech company.

116
00:06:14,640 --> 00:06:17,599
Speaker 4: We create products, we create a brand, but everything else

117
00:06:17,640 --> 00:06:20,840
Speaker 4: that we do is actually technology and data. So from

118
00:06:21,000 --> 00:06:27,120
Speaker 4: product development, supply chain, to customer interaction to our own

119
00:06:27,160 --> 00:06:31,279
Speaker 4: eCOM environment, you really have the analytical depths and the

120
00:06:31,320 --> 00:06:34,520
Speaker 4: complexity of a tech company, but at the same time

121
00:06:34,520 --> 00:06:37,279
Speaker 4: you have the emotional highest of a consumer brant.

122
00:06:37,320 --> 00:06:39,960
Speaker 2: And I actually think this is a really nice combination.

123
00:06:42,160 --> 00:06:45,599
Speaker 1: Whatever else it is. On is a premium brand that's

124
00:06:45,600 --> 00:06:48,960
Speaker 1: had an impact on its sales strategy. Direct to consumer

125
00:06:49,080 --> 00:06:52,000
Speaker 1: channels have been bolstered by the opening of flagship stores

126
00:06:52,000 --> 00:06:55,520
Speaker 1: around the world, and while wholesale revenue remains robust, the

127
00:06:55,600 --> 00:06:58,839
Speaker 1: company is taking a selective approach to distribution. Have you

128
00:06:58,880 --> 00:07:01,039
Speaker 1: had to say no to some pointner, how do you

129
00:07:01,080 --> 00:07:02,440
Speaker 1: think about the wholesale Now.

130
00:07:02,320 --> 00:07:05,800
Speaker 3: We're trying to allocate resources to where it has the

131
00:07:05,839 --> 00:07:08,839
Speaker 3: biggest impact, and with that comes a lot of saying no.

132
00:07:09,040 --> 00:07:11,800
Speaker 3: We're working with the partners that are reaching the communities

133
00:07:11,840 --> 00:07:13,960
Speaker 3: that we want to reach, and so this has led

134
00:07:14,000 --> 00:07:16,520
Speaker 3: to the distribution that we have, which very much started

135
00:07:16,760 --> 00:07:19,560
Speaker 3: We front specialty accounts like fleet feed in the US,

136
00:07:20,000 --> 00:07:23,920
Speaker 3: but then evolved into more channel sporting goods, but then

137
00:07:23,960 --> 00:07:27,480
Speaker 3: also counts that or reaching an even younger audience like JD.

138
00:07:29,320 --> 00:07:30,000
Speaker 2: Or foot locker.

139
00:07:30,120 --> 00:07:33,360
Speaker 4: We're rooted in running, we are rooted in performance, and

140
00:07:33,400 --> 00:07:36,680
Speaker 4: there's still a lot of room that for us to grow,

141
00:07:36,800 --> 00:07:38,720
Speaker 4: a lot of market shed to gain. At the same time,

142
00:07:38,760 --> 00:07:41,560
Speaker 4: it gives you, it gives you credibility, and then the

143
00:07:41,600 --> 00:07:44,200
Speaker 4: shoes are also born in an everyday environment.

144
00:07:45,680 --> 00:07:48,920
Speaker 1: As On moves beyond its performance running niche to become

145
00:07:48,960 --> 00:07:52,680
Speaker 1: an everyday footwear choice. The company's betting that apparel will

146
00:07:52,720 --> 00:07:56,080
Speaker 1: broaden its reach in similar fashion. Why did they move

147
00:07:56,080 --> 00:07:57,239
Speaker 1: into apparel come.

148
00:07:57,320 --> 00:07:59,679
Speaker 4: The mission is that that you move and you enjoy

149
00:07:59,720 --> 00:08:02,120
Speaker 4: and move, and the parallel is an important part of that.

150
00:08:02,240 --> 00:08:04,600
Speaker 2: It's growing. It's still relatively small.

151
00:08:04,560 --> 00:08:06,760
Speaker 4: But we feel it will be an important part of

152
00:08:06,880 --> 00:08:08,239
Speaker 4: the future business.

153
00:08:08,280 --> 00:08:08,679
Speaker 2: Apparel.

154
00:08:08,720 --> 00:08:11,920
Speaker 3: We want to grow it over proportionally. Percentage you know

155
00:08:11,960 --> 00:08:14,480
Speaker 3: what it is in Percentage is actually not so important

156
00:08:14,520 --> 00:08:16,800
Speaker 3: for us. For us, it's important that we're building it

157
00:08:16,840 --> 00:08:19,000
Speaker 3: in a premium way and it's a multi year journey.

158
00:08:19,160 --> 00:08:22,080
Speaker 1: Another area with upside for On is tennis.

159
00:08:22,360 --> 00:08:22,720
Speaker 2: For US.

160
00:08:22,760 --> 00:08:28,240
Speaker 3: Tennis has two elements, right. I think one is it's

161
00:08:28,280 --> 00:08:32,840
Speaker 3: a huge opportunity from a brand awareness perspective beyond tennis,

162
00:08:32,880 --> 00:08:35,480
Speaker 3: just how can we showcase ON as a sports for company.

163
00:08:35,520 --> 00:08:40,320
Speaker 3: And then we feel there's an opportunity to make tennis

164
00:08:40,600 --> 00:08:44,520
Speaker 3: more inclusive in many countries. It's still a very exclusive sport,

165
00:08:44,600 --> 00:08:46,520
Speaker 3: so how can we bring it to the masses and

166
00:08:46,600 --> 00:08:51,160
Speaker 3: how can the tennis look be transponded to an everyday look?

167
00:08:51,240 --> 00:08:53,080
Speaker 3: And that's definitely a big opportunity.

168
00:08:54,080 --> 00:08:57,360
Speaker 1: On has already established a strong presence globally and it

169
00:08:57,400 --> 00:08:59,199
Speaker 1: has plans to enlarge that footprint.

170
00:08:59,360 --> 00:09:01,560
Speaker 4: When you start a company in Switzerland, the first thing

171
00:09:01,559 --> 00:09:03,560
Speaker 4: you need to do is really leaving the country. So

172
00:09:03,600 --> 00:09:06,120
Speaker 4: we actually build a global company right from the beginning.

173
00:09:06,200 --> 00:09:09,800
Speaker 4: We still have significant room to grow in parts of Europe.

174
00:09:09,880 --> 00:09:13,079
Speaker 4: We are quite strong in Japan already, but just started

175
00:09:13,200 --> 00:09:16,800
Speaker 4: in Latin America. Big market China of course a big

176
00:09:16,840 --> 00:09:18,600
Speaker 4: focus for US and in the next years.

177
00:09:18,720 --> 00:09:20,920
Speaker 6: China is a country that everyone wants to be in,

178
00:09:21,000 --> 00:09:22,600
Speaker 6: but you have to do it right right, You actually

179
00:09:22,640 --> 00:09:25,800
Speaker 6: have to put significant investment forth to actually get it right.

180
00:09:25,880 --> 00:09:28,200
Speaker 6: If you kind of take a halfway strategy, you're not

181
00:09:28,360 --> 00:09:29,760
Speaker 6: going to be successful there.

182
00:09:29,880 --> 00:09:33,040
Speaker 5: Historically, but China has been both a great opportunity to

183
00:09:33,120 --> 00:09:36,520
Speaker 5: drive revenues, but critically it's also been better margin. People

184
00:09:36,520 --> 00:09:39,640
Speaker 5: will pay more for the same good abroad, and therefore

185
00:09:40,160 --> 00:09:42,439
Speaker 5: China has been not just the avenue of growth, has

186
00:09:42,440 --> 00:09:43,160
Speaker 5: been the best.

187
00:09:42,960 --> 00:09:43,720
Speaker 2: Avenue of growth.

188
00:09:44,200 --> 00:09:48,000
Speaker 5: The questions of whether that is tapering now are centered

189
00:09:48,000 --> 00:09:50,360
Speaker 5: around whether that's structural or is it sickly?

190
00:09:50,720 --> 00:09:53,520
Speaker 1: What does the path to success in China look like now?

191
00:09:53,960 --> 00:09:56,400
Speaker 1: Is it sort of back to some situation like normal?

192
00:09:56,480 --> 00:09:59,160
Speaker 1: How does it feel in China right now?

193
00:09:59,200 --> 00:10:02,080
Speaker 3: In China, it feels like we're still a very small

194
00:10:02,120 --> 00:10:04,480
Speaker 3: brand with a lot of potential. There's a lot of

195
00:10:04,520 --> 00:10:08,480
Speaker 3: macroeconomic uncertainty. We feel we're still so small as a

196
00:10:08,520 --> 00:10:12,440
Speaker 3: brand that the macroeconomic element is a bit less important

197
00:10:12,440 --> 00:10:13,240
Speaker 3: because we have so.

198
00:10:13,320 --> 00:10:16,360
Speaker 2: Much room to just grow market share.

199
00:10:16,480 --> 00:10:18,920
Speaker 3: We're really at the point where I think we've proven

200
00:10:19,000 --> 00:10:22,240
Speaker 3: product market fit and now it's about scaling it.

201
00:10:22,400 --> 00:10:25,360
Speaker 4: Back in twenty nineteen, they were about fifteen people working

202
00:10:25,400 --> 00:10:25,839
Speaker 4: in China.

203
00:10:26,240 --> 00:10:27,360
Speaker 2: Today it's a team of one.

204
00:10:27,280 --> 00:10:31,280
Speaker 4: Hundred and fifty. There is not really a wholesale partnership

205
00:10:31,320 --> 00:10:34,560
Speaker 4: network in China, so it's all about building our own stores,

206
00:10:34,960 --> 00:10:38,680
Speaker 4: our own monoparant destinations, and this will take time, but

207
00:10:39,080 --> 00:10:41,120
Speaker 4: it's a great thing to have so we can really

208
00:10:41,559 --> 00:10:43,880
Speaker 4: engineer to cross over the next.

209
00:10:43,880 --> 00:10:47,760
Speaker 1: Years as CFO and co CEO with the Swiss Footwear

210
00:10:47,800 --> 00:10:50,600
Speaker 1: and the Parrel company on Martin and Hoffman has the

211
00:10:50,720 --> 00:10:53,640
Speaker 1: kind of job that keeps him on his choes. His

212
00:10:53,760 --> 00:10:56,560
Speaker 1: professional path has taken some unconventional turns.

213
00:10:56,960 --> 00:10:59,880
Speaker 4: I am an engineer from a background so called an engineering,

214
00:11:00,000 --> 00:11:04,760
Speaker 4: computer science and business management, so not really a finance background.

215
00:11:04,840 --> 00:11:07,320
Speaker 4: Then I ended up in consulting and I've worked with

216
00:11:07,600 --> 00:11:10,720
Speaker 4: many amazing CFOs all around the world of bigger and

217
00:11:10,760 --> 00:11:13,480
Speaker 4: smaller companies, and I think this ignited.

218
00:11:13,120 --> 00:11:15,400
Speaker 2: My love for that shop and that role.

219
00:11:16,360 --> 00:11:19,400
Speaker 4: And then I transitioned into a CFO role myself at

220
00:11:19,400 --> 00:11:21,160
Speaker 4: a retail company here in Switzerland.

221
00:11:21,760 --> 00:11:23,800
Speaker 2: That's where I connected with Mark.

222
00:11:24,280 --> 00:11:27,520
Speaker 1: I asked him how he acquired CFO skills without formal

223
00:11:27,559 --> 00:11:29,319
Speaker 1: training in finance and accounting.

224
00:11:29,679 --> 00:11:31,840
Speaker 4: First, you need to have a love for mass and

225
00:11:32,040 --> 00:11:34,960
Speaker 4: that's also the same in computer science, it's the same background.

226
00:11:35,400 --> 00:11:37,640
Speaker 4: I think you need to lift the values off a CFO,

227
00:11:38,320 --> 00:11:40,719
Speaker 4: which is which is very important, and I think I

228
00:11:41,200 --> 00:11:43,760
Speaker 4: do this and try to be really a role model

229
00:11:43,920 --> 00:11:46,080
Speaker 4: in this as well. And last, but not least, it's

230
00:11:46,160 --> 00:11:49,080
Speaker 4: it's it's understanding the psychology of the numbers and this

231
00:11:49,120 --> 00:11:51,720
Speaker 4: is something that I learned from working with so many

232
00:11:51,760 --> 00:11:54,000
Speaker 4: different great CFOs all around the world.

233
00:11:55,960 --> 00:11:59,240
Speaker 1: For Hoffman and co CEO Mark Maura, building on this

234
00:11:59,280 --> 00:12:02,080
Speaker 1: business will be a mix of science and art. The

235
00:12:02,120 --> 00:12:05,760
Speaker 1: two principles meet in On's growing portfolio of retail stores

236
00:12:05,920 --> 00:12:08,359
Speaker 1: across the US, Europe and Asia.

237
00:12:08,480 --> 00:12:12,040
Speaker 5: Stores are magical, so much of the storytelling sure is

238
00:12:12,080 --> 00:12:16,160
Speaker 5: commercials or being targeted by your social media account, but

239
00:12:16,400 --> 00:12:18,400
Speaker 5: the best way to tell that story is to show

240
00:12:18,440 --> 00:12:20,520
Speaker 5: that product in environment that you control.

241
00:12:20,640 --> 00:12:22,800
Speaker 6: Flagships have to be thought of not just as stores,

242
00:12:22,840 --> 00:12:25,480
Speaker 6: but also as marketing vehicles. So you have to think

243
00:12:25,520 --> 00:12:28,040
Speaker 6: about what it does in terms of new customer acquisition,

244
00:12:28,160 --> 00:12:29,920
Speaker 6: what it does in terms of the halo that we

245
00:12:30,000 --> 00:12:32,560
Speaker 6: often see when a flagship opens in a market, all

246
00:12:32,600 --> 00:12:34,640
Speaker 6: of a sudden, the e commerce business gets a big left.

247
00:12:35,679 --> 00:12:38,199
Speaker 1: On has opened stores in some of the world's trendiest

248
00:12:38,200 --> 00:12:42,240
Speaker 1: shopping areas, Region Street in London, NoHo in New York,

249
00:12:42,800 --> 00:12:47,880
Speaker 1: Tokyo's fashionable Harajuku district. Martin Hoffman showed me around the

250
00:12:47,920 --> 00:12:51,560
Speaker 1: store located below On's global headquarters in Zeerich.

251
00:12:51,760 --> 00:12:53,240
Speaker 2: What's super important for us that.

252
00:12:55,480 --> 00:12:58,800
Speaker 4: The store really screams the premininess of the print, and

253
00:12:59,400 --> 00:13:02,920
Speaker 4: so the stands for performance and design and this should

254
00:13:02,920 --> 00:13:04,960
Speaker 4: be reflected in the in the store as well. And

255
00:13:05,000 --> 00:13:07,800
Speaker 4: then we want to connect to the local communities as well,

256
00:13:07,960 --> 00:13:10,120
Speaker 4: so many of our stores have a space in the

257
00:13:10,120 --> 00:13:12,400
Speaker 4: area you can actually meet for a run.

258
00:13:13,160 --> 00:13:16,720
Speaker 1: Each outlet also offers opportunities for consumers to learn about

259
00:13:16,720 --> 00:13:19,960
Speaker 1: On's history and it's constantly evolving technology.

260
00:13:20,320 --> 00:13:22,920
Speaker 4: In the traditional running shoel, you only have the material

261
00:13:23,000 --> 00:13:25,240
Speaker 4: that you can play with. You can make the film software,

262
00:13:25,240 --> 00:13:27,880
Speaker 4: you can make the film harder, and we come up

263
00:13:27,920 --> 00:13:30,400
Speaker 4: with a technology where you also have an engineering part

264
00:13:30,440 --> 00:13:33,120
Speaker 4: in it's a real technology part. The idea is always

265
00:13:33,200 --> 00:13:36,280
Speaker 4: the same. So you have a soft landing and a

266
00:13:36,400 --> 00:13:39,320
Speaker 4: firm push off. So the soft landing is generated by

267
00:13:39,360 --> 00:13:43,560
Speaker 4: the elements collapsing when you land and then they become firm,

268
00:13:43,640 --> 00:13:46,000
Speaker 4: and so you have this nice push off when you

269
00:13:46,040 --> 00:13:47,440
Speaker 4: basically need the speed.

270
00:13:48,640 --> 00:13:53,640
Speaker 1: Alongside technology that boosts performance, there's innovation that advances sustainability.

271
00:13:54,200 --> 00:13:59,400
Speaker 1: Cyclon On's Circular Product subscription program centers on recyclable shoes

272
00:13:59,440 --> 00:14:02,640
Speaker 1: and a parrel made from caster beans and caster oil.

273
00:14:02,960 --> 00:14:03,400
Speaker 2: Out of the.

274
00:14:03,360 --> 00:14:07,000
Speaker 4: Cast bean, we generate in oil, and out of the

275
00:14:07,040 --> 00:14:11,440
Speaker 4: oil we basically generate palets, and from the palants we

276
00:14:11,520 --> 00:14:14,880
Speaker 4: can make the outsol of the shoe, but we also

277
00:14:14,960 --> 00:14:18,000
Speaker 4: make yarn for the upper so the whole shoe is

278
00:14:18,000 --> 00:14:21,560
Speaker 4: basically the same material out of that bean. And the

279
00:14:21,640 --> 00:14:25,880
Speaker 4: advantage is that this product can be fully recycled. And

280
00:14:26,120 --> 00:14:29,160
Speaker 4: because we felt this is a product that you shouldn't own,

281
00:14:29,600 --> 00:14:31,720
Speaker 4: you can only subscribe for it, so you can only

282
00:14:31,760 --> 00:14:34,280
Speaker 4: rend it and only when you send your old product

283
00:14:34,280 --> 00:14:35,800
Speaker 4: back you get a new product.

284
00:14:36,160 --> 00:14:39,640
Speaker 1: This sounds like good business because you with a subscription model,

285
00:14:39,720 --> 00:14:43,080
Speaker 1: you get loyalty from your customers. How do the financials

286
00:14:43,120 --> 00:14:44,800
Speaker 1: work around that kind of product?

287
00:14:45,280 --> 00:14:47,120
Speaker 4: So for us, the most important thing is that the

288
00:14:47,160 --> 00:14:50,080
Speaker 4: product comes back, so that really the customer engages in

289
00:14:50,120 --> 00:14:53,200
Speaker 4: that circularity, and of course it gives us a nice interaction.

290
00:14:53,320 --> 00:14:56,840
Speaker 4: VI is the customer at that important moment of repurchasing

291
00:14:57,160 --> 00:14:59,240
Speaker 4: and also offering more products.

292
00:14:58,800 --> 00:15:00,960
Speaker 2: That we have in that in that program.

293
00:15:01,040 --> 00:15:03,880
Speaker 4: At the moment, it's still a pilot phase, but we

294
00:15:04,040 --> 00:15:07,440
Speaker 4: already have thirty thousand subscribers, so it's growing quickly.

295
00:15:08,960 --> 00:15:12,440
Speaker 1: On's workforce is growing quickly as well. For Vmann, it's

296
00:15:12,480 --> 00:15:16,200
Speaker 1: a challenge to scale up while preserving the culture. Over startup.

297
00:15:16,640 --> 00:15:20,080
Speaker 4: We invest a lot in the offices that you feel home,

298
00:15:20,360 --> 00:15:23,160
Speaker 4: that you can actually be at your best yourself and

299
00:15:23,240 --> 00:15:25,560
Speaker 4: people work very differently, and we take a lot of

300
00:15:26,240 --> 00:15:30,240
Speaker 4: input from the sports world, actually the athlete spirit right

301
00:15:30,600 --> 00:15:33,080
Speaker 4: building a sports team that can perform at the best,

302
00:15:33,760 --> 00:15:36,480
Speaker 4: but also talking a lot about the explorer spirit, how

303
00:15:36,480 --> 00:15:40,040
Speaker 4: can we really tap into new things, continue being disruptive.

304
00:15:39,840 --> 00:15:42,760
Speaker 1: And On has been spreading that spirit across the world.

305
00:15:42,920 --> 00:15:46,880
Speaker 4: We have a big office in Portland, in Shanghai, in Berlin,

306
00:15:47,520 --> 00:15:51,360
Speaker 4: South Paolo, Melbourne. We have eighty different nationalities head On.

307
00:15:51,640 --> 00:15:53,440
Speaker 4: It's very important to have a diverse team because we

308
00:15:53,520 --> 00:15:56,840
Speaker 4: have a very diverse landscape of customers and in order

309
00:15:56,880 --> 00:15:59,480
Speaker 4: to understand that it's important to have all the different

310
00:15:59,520 --> 00:16:02,320
Speaker 4: backgrounds mindsets here in the team as well.

311
00:16:02,320 --> 00:16:04,840
Speaker 1: Do you find it difficult in some markets to find

312
00:16:04,920 --> 00:16:05,960
Speaker 1: enough of the right people.

313
00:16:06,160 --> 00:16:07,080
Speaker 2: We are very fortunate.

314
00:16:07,200 --> 00:16:11,000
Speaker 4: We got forty thousand applications last year for four hundred hires,

315
00:16:11,240 --> 00:16:13,720
Speaker 4: so he can be very selective and really build a

316
00:16:13,800 --> 00:16:14,800
Speaker 4: high performing team.

317
00:16:15,480 --> 00:16:18,360
Speaker 1: The Swiss footwear and apparel firm On began with an

318
00:16:18,400 --> 00:16:23,880
Speaker 1: athlete's imagination. Retired world champion ironman Olivier Baiernhardt dreamed up

319
00:16:23,880 --> 00:16:28,240
Speaker 1: the prototype for a revolutionary new running shoe. A decade later,

320
00:16:28,320 --> 00:16:33,120
Speaker 1: another Swiss athletic champion entered On's orbit, Roger Federer, winner

321
00:16:33,160 --> 00:16:36,720
Speaker 1: of twenty Grand Slam tennis titles. He joined the company

322
00:16:36,760 --> 00:16:40,160
Speaker 1: as an investor and an entrepreneur, bringing much more than

323
00:16:40,240 --> 00:16:41,680
Speaker 1: his name to the relationship.

324
00:16:41,840 --> 00:16:44,840
Speaker 3: We're very lucky that that he loves to engage, especially

325
00:16:44,920 --> 00:16:46,920
Speaker 3: on the product, and I think this is also where

326
00:16:47,240 --> 00:16:50,400
Speaker 3: with his expertise and his cultural understanding of tennis, where

327
00:16:50,400 --> 00:16:52,560
Speaker 3: he can add a lot of values. It's great to

328
00:16:52,600 --> 00:16:55,400
Speaker 3: also have with him, you know, very strategic discussions around,

329
00:16:55,440 --> 00:16:58,760
Speaker 3: for example, how do we want to shape tennis as

330
00:16:58,800 --> 00:17:01,200
Speaker 3: part of On and Watch be our ole world strategy.

331
00:17:02,200 --> 00:17:05,719
Speaker 1: Sports endorsements and celebrity partnerships can have a major impact

332
00:17:05,800 --> 00:17:10,680
Speaker 1: on credibility and boost market share. They can also backfire disastrously,

333
00:17:11,000 --> 00:17:13,960
Speaker 1: as with the ugly controversies that led added As to

334
00:17:14,200 --> 00:17:16,359
Speaker 1: end its relationship with Kanye West.

335
00:17:16,720 --> 00:17:19,160
Speaker 6: Tying yourself to a celebrity can certainly be a driver

336
00:17:19,320 --> 00:17:21,320
Speaker 6: brand awareness, but it can also be a liability and

337
00:17:21,320 --> 00:17:22,800
Speaker 6: you have to be really careful.

338
00:17:23,359 --> 00:17:25,760
Speaker 5: You find the right person to wrap your brand at

339
00:17:25,760 --> 00:17:28,119
Speaker 5: the right time, and there is nothing better. You find

340
00:17:28,160 --> 00:17:30,320
Speaker 5: the right person to wrap your brand at the wrong

341
00:17:30,359 --> 00:17:32,800
Speaker 5: time and you're in trouble. You find the wrong person

342
00:17:33,280 --> 00:17:36,399
Speaker 5: at the wrong time and throw your hands up in

343
00:17:36,440 --> 00:17:36,720
Speaker 5: the air.

344
00:17:37,840 --> 00:17:41,000
Speaker 1: On leadership, Team takes the process of recruiting and working

345
00:17:41,000 --> 00:17:43,399
Speaker 1: with its brand representatives very seriously.

346
00:17:43,720 --> 00:17:46,199
Speaker 4: I think it's a lot about the conversations that you

347
00:17:46,280 --> 00:17:50,040
Speaker 4: need to have before you actually engage with Roger was

348
00:17:50,440 --> 00:17:54,440
Speaker 4: creats that all started. He was here in the lap

349
00:17:54,480 --> 00:17:57,160
Speaker 4: and afterwards we went out for dinner, so we really

350
00:17:57,240 --> 00:17:59,080
Speaker 4: had a lot of time to get to know each other.

351
00:17:59,680 --> 00:18:03,480
Speaker 2: And similar to hiring a new team member.

352
00:18:03,280 --> 00:18:07,280
Speaker 3: We can never rely from a profitability perspective or from

353
00:18:07,280 --> 00:18:11,440
Speaker 3: a revenue perspective or growth perspective just on one athlete

354
00:18:11,520 --> 00:18:13,920
Speaker 3: or area of business. Are trying to create the balanced

355
00:18:14,000 --> 00:18:18,359
Speaker 3: portfolio that reaches into many different communities and that shows

356
00:18:18,760 --> 00:18:21,159
Speaker 3: kind of who On is from all different aspects. So

357
00:18:21,240 --> 00:18:24,200
Speaker 3: take Ben Shelton in tennis and Legoschriantek in tennis, very

358
00:18:24,200 --> 00:18:28,200
Speaker 3: different characters, but ultimately both are very, very strongly aligned

359
00:18:28,240 --> 00:18:29,160
Speaker 3: with who we are.

360
00:18:30,520 --> 00:18:33,000
Speaker 1: Ben Shelton's run to the semi finals of the twenty

361
00:18:33,080 --> 00:18:37,320
Speaker 1: twenty three US Open brought on priceless exposure. The upcoming

362
00:18:37,400 --> 00:18:41,040
Speaker 1: Paris Olympics represent an even bigger opportunity.

363
00:18:40,600 --> 00:18:43,919
Speaker 5: A very large luxury all the image is sponsoring. We

364
00:18:43,960 --> 00:18:47,920
Speaker 5: are guaranteed this is going to be a beautiful Olympics

365
00:18:47,920 --> 00:18:50,480
Speaker 5: that becomes a spectacle around luxury, around spending, and so

366
00:18:50,520 --> 00:18:53,840
Speaker 5: it's going to be an interesting branding exercise that we're

367
00:18:53,840 --> 00:18:55,400
Speaker 5: going to see in a very unique way.

368
00:18:56,160 --> 00:18:59,320
Speaker 1: Switzerland's delegation well, once again we're on gear at the

369
00:18:59,320 --> 00:19:02,840
Speaker 1: opening Serah and the company will put significant resources into

370
00:19:02,920 --> 00:19:05,240
Speaker 1: every aspect. If it's Olympic participation.

371
00:19:05,560 --> 00:19:08,479
Speaker 4: It's going to be an important Olympics for us because

372
00:19:08,600 --> 00:19:10,680
Speaker 4: Parison's in the heart of Europe. It's in the heart

373
00:19:10,680 --> 00:19:12,600
Speaker 4: of where we are, so we really want to be

374
00:19:13,720 --> 00:19:16,920
Speaker 4: present in Paris. We want to talk to the community there,

375
00:19:16,960 --> 00:19:19,760
Speaker 4: We want to show up with innovation, with sustainability.

376
00:19:20,000 --> 00:19:22,320
Speaker 3: A lot of the product developments that we're doing and

377
00:19:22,359 --> 00:19:26,160
Speaker 3: how we're empowering and enabling athletes to win is going

378
00:19:26,160 --> 00:19:28,639
Speaker 3: to come together around Paris. So that's a very very

379
00:19:28,680 --> 00:19:33,320
Speaker 3: important internal element and it significantly helped us to accelerate

380
00:19:33,760 --> 00:19:34,560
Speaker 3: product innovation.

381
00:19:34,680 --> 00:19:35,320
Speaker 2: This will be the.

382
00:19:35,240 --> 00:19:39,840
Speaker 3: First Olympics where On truly is a global premium sportsware brand.

383
00:19:39,960 --> 00:19:41,960
Speaker 1: And what kind of bump would you expect to see

384
00:19:42,000 --> 00:19:44,679
Speaker 1: from the Olympics? Are you watching? Are you waiting for

385
00:19:44,720 --> 00:19:47,440
Speaker 1: this to have a noticeable impact on the numbers?

386
00:19:48,280 --> 00:19:51,439
Speaker 4: It's all about credibility, and so you see On. You

387
00:19:51,520 --> 00:19:54,480
Speaker 4: see On competing at the highest level, really winning there,

388
00:19:55,000 --> 00:19:57,800
Speaker 4: and this gives the prend credibility. I don't need the

389
00:19:57,880 --> 00:20:00,520
Speaker 4: same shoe that the best runners in the WoT need,

390
00:20:01,040 --> 00:20:04,880
Speaker 4: but I get really excited by being able to wear

391
00:20:04,880 --> 00:20:07,400
Speaker 4: the same technology like the best runners.

392
00:20:08,040 --> 00:20:10,960
Speaker 1: Over the last ten years, Martin Hoffman has helped guide

393
00:20:11,040 --> 00:20:14,359
Speaker 1: On from a scrappy ten million dollar upstart to a

394
00:20:14,359 --> 00:20:18,240
Speaker 1: billion dollar publicly listed power player. I want you to

395
00:20:18,280 --> 00:20:21,680
Speaker 1: know what he sees coming in the next decade. What's

396
00:20:21,720 --> 00:20:24,920
Speaker 1: the opportunity that excites you the most over the next

397
00:20:25,000 --> 00:20:26,520
Speaker 1: five to ten years On.

398
00:20:27,440 --> 00:20:31,240
Speaker 4: I think we have so many opportunities to grow, and

399
00:20:31,480 --> 00:20:34,639
Speaker 4: it's so much fun to work in a growing environment,

400
00:20:34,800 --> 00:20:37,920
Speaker 4: to work with emotional products, to work on a global scale.

401
00:20:38,160 --> 00:20:43,200
Speaker 4: Mentioned going from running to tennis to outdoor into training,

402
00:20:43,720 --> 00:20:47,520
Speaker 4: from shoes to apparel, and we can continue that dream

403
00:20:47,600 --> 00:20:50,800
Speaker 4: in many different dimensions, and that's what we do.

404
00:20:51,240 --> 00:20:53,960
Speaker 1: I like to think there are not challenges that keep

405
00:20:54,000 --> 00:20:55,880
Speaker 1: you up at night, but are there things that over

406
00:20:55,880 --> 00:20:58,320
Speaker 1: the next five to ten years you can see looming

407
00:20:58,359 --> 00:21:01,000
Speaker 1: on the horizon that worry you about challenges that the

408
00:21:01,040 --> 00:21:01,840
Speaker 1: business will face.

409
00:21:02,720 --> 00:21:05,639
Speaker 4: For me, it's all about finding that right level of

410
00:21:05,800 --> 00:21:08,840
Speaker 4: speed for the company to grow, because if you grow

411
00:21:08,880 --> 00:21:12,960
Speaker 4: too fast, then maybe it's over soon. And I really

412
00:21:13,040 --> 00:21:18,320
Speaker 4: want to maintain that positive positivity of growing but growing

413
00:21:18,320 --> 00:21:20,959
Speaker 4: in a profitable way. So there are a lot of

414
00:21:21,040 --> 00:21:23,800
Speaker 4: elements in there that are super important for me and

415
00:21:23,840 --> 00:21:26,119
Speaker 4: where my focus is. And at the same time, I

416
00:21:26,119 --> 00:21:28,880
Speaker 4: think I talk more about culture today than I talk

417
00:21:28,920 --> 00:21:33,840
Speaker 4: about numbers. How can we maintain the entrepreneurs spirit, the

418
00:21:33,880 --> 00:21:35,040
Speaker 4: athlete spirit.

419
00:21:34,920 --> 00:21:37,800
Speaker 2: That we have in the company, even so we are

420
00:21:37,840 --> 00:21:38,560
Speaker 2: growing and growing.

421
00:21:38,600 --> 00:21:40,520
Speaker 1: If a friend called you tomorrow and said they've been

422
00:21:40,520 --> 00:21:42,879
Speaker 1: promoted to CFO, maybe you have lots of friends who've

423
00:21:42,920 --> 00:21:46,520
Speaker 1: been promoted to CFO. And this is not a fictitious question.

424
00:21:47,040 --> 00:21:49,399
Speaker 1: What's the advice that you give somebody who's just been

425
00:21:49,440 --> 00:21:52,359
Speaker 1: given this role, just given this responsibility how should they

426
00:21:52,400 --> 00:21:52,880
Speaker 1: handle it?

427
00:21:53,600 --> 00:21:57,199
Speaker 4: So you will find yourself many times spending hours and

428
00:21:57,359 --> 00:22:00,880
Speaker 4: days and nights in diving into your extra sheets, into

429
00:22:00,880 --> 00:22:04,199
Speaker 4: your PowerPoint presentations, and then just an hour before you

430
00:22:04,400 --> 00:22:07,760
Speaker 4: present that whole THNK to someone, you figure out, while

431
00:22:07,760 --> 00:22:11,000
Speaker 4: I was thinking, far too complex and no one will

432
00:22:11,080 --> 00:22:14,080
Speaker 4: understand this, no one will be interested. So actually go back,

433
00:22:14,480 --> 00:22:16,840
Speaker 4: you write everything down in just a page or a

434
00:22:16,840 --> 00:22:19,880
Speaker 4: few words, and and I think that's in the ends

435
00:22:19,960 --> 00:22:23,280
Speaker 4: essence what we do. We take some very high level

436
00:22:23,320 --> 00:22:27,320
Speaker 4: of complexity. It makes it easily digestible for everyone. So

437
00:22:27,359 --> 00:22:30,000
Speaker 4: I think that's one thing you will figure out. There's

438
00:22:30,040 --> 00:22:32,240
Speaker 4: a lot of big numbers. So there are a lot

439
00:22:32,240 --> 00:22:35,399
Speaker 4: of upsides and downsides, but luckily some of them upset

440
00:22:35,440 --> 00:22:39,040
Speaker 4: each other. And beforeward looking so actually to the to

441
00:22:39,119 --> 00:22:42,720
Speaker 4: the topic of the future CFO. We call it advanced navigator,

442
00:22:43,520 --> 00:22:45,760
Speaker 4: so really looking forward, less backward.

443
00:22:46,000 --> 00:22:54,879
Speaker 1: I'm Anna Edwards. This is blowing back. M