text｜Dou Xuan Editor｜Qiao Qian
When Lululemon became a "religion" with yoga pants, another originally niche sports shoe brand Onangpao is also quietly becoming a popular trend in gyms.
Maybe you have not heard of this strange name, but in Shanghai, where the fitness trend is strongest, On Aopao and Lululemon are called "middle-class golden fitness partners." It appears in the gym so frequently that some users told 36Kr that they can see the same model from this brand in almost every group class .
In fact, judging from the performance of this sports upstart that went public last year, it has indeed delivered a brilliant report card.
During the epidemic, when Adi , Nike and other giants are struggling to move forward, starting from 2018, On Ampu has been growing at a growth rate of more than 60% per year. In the first annual report after its listing, its annual growth rate in 2021 was as high as 70%.
2021 revenue and year-on-year growth rate of
. In the Chinese market, this brand has actually been in a low-key position for 4 years. Like brands such as Lululemon, On Ampu, which has just entered the Chinese market, does not do any promotions. So far, there are only 8 offline stores, and they have not been widely promoted online.
What we are curious about is how such a niche and Buddhist brand has become a hit in the gym?
sports champion founded and tennis superstar platform
Although it is still a niche brand in China, On Aopa has become one of the hottest new sports brands in recent years in North America, Europe and even Japan.
OnOn was founded in 2010 by Swiss , a former professional triathlon athlete and three-time world champion Olivier Bernhard, and two friends and running enthusiasts. The original intention of its establishment was to find a pair of running shoes that you can wear comfortably. For this reason, the founder developed CloudTec technology, which is inspired by rubber hose pipes, focusing on cushioning and comfortable cushioning.
pictures are from financial reports. Shortly after the establishment of
, Onantao began the process of global expansion. It entered Germany in 2011 and soon entered the United States and Japan in 2013.
In terms of appearance design, compared with professional running shoe brands such as ASIS , On AUP is more inclined to design shoes into a style that can be worn in multiple scenarios.
A user who has purchased dozens of pairs of On-Stay shoes said that one of the reasons he started trying when the brand first entered China was that its style can also be matched with casual clothing in addition to fitness. NPD analysts believe that this style has made On Aopa highly recognized outside the running industry. In the year before its listing, OnPu doubled its market share in the North American market.
As a footwear brand created by athletes, On Anpao has also been increasing its popularity through in-depth cooperation with athletes. Among them, the addition of tennis superstar Federer undoubtedly greatly enhanced On Aopa's reputation.
After parting ways with Nike, who had worked with 24 years, in November 2019, Federer officially joined Onao as a dual identity as a shareholder and spokesperson. On Aopao also launched the sneakers he personally designed the following year, and Federer also wore On Aopao's shoes to the international arena, which obviously endorsed the brand for On Aopao. In addition to Federer, Onpa also sponsors athletes such as Tim Don who broke the world record in 2017 and London Olympic runner-up Javier Gomez.
The well-known data analysis agency NPD once said to the public, "During the pandemic, two brands' performances were not affected by the epidemic. One was Hoka One One (a running shoe brand from France, acquired by UGG's parent company in 2013), and the other was On Aopa." A group of young sports and leisure brands, including On Aopa and All birds, were also successfully listed in 2021.
However, even compared with the same batch of brands, OnAnpao's performance and market value growth rate are also very impressive.
21 revenue and year-on-year growth rate of three sports brands
In the last round of financing before the IPO, OnAnpao's valuation was only US$2 billion. By the time of IPO fundraising six months later, the valuation had exceeded US$6 billion.
Shortly after its listing, On AUP's market value once exceeded US$11 billion, but it was already the total market value of Asics, Sketchers and All birds at that time - you should know that the revenue of the first two brands is almost more than 5 times that of On AUP.
can give investors high confidence, mainly because On Ampuo's revenue has been growing rapidly. Since its establishment, OnOnPao’s annual compound growth rate has exceeded 80%.
According to its 2021 annual report, OnOnPao currently has more than 8,700 retail outlets in more than 50 countries. In terms of sales channels, On-Annpo initially relied on wholesale channels that cooperated with dealers, which is also its main channel. But at the same time, On-Annpo also attaches great importance to the DTC channel, which means that the brand can face users directly and have sufficient control over profit margins and user data.
Judging from the data in Q1 2022, OnAnpao's wholesale and DTC channels account for about 64% and 36% in the past two years. But it also mentioned in its financial report that it will continue to expand its DTC channel in the future, focusing on its own websites and online e-commerce platforms.
entered the Chinese market: community or community
In China, the first pair of On-Paul shoes that many users come into contact with are Cloud X.
For a long time, this pair of shoes has been the best-selling product on OnPaul in various channels in China. In the OnOnPaul product matrix, the price is relatively basic, but it is worth noting that this is not a pair of shoes designed specifically for running, but an comprehensive training shoe .
A senior fitness user said that she had several professional sneakers before, but after buying Cloud X, these shoes became the most frequently used sneakers. "First of all, it is because of the comfort of wearing. Secondly, this pair is mainly used in multiple scenarios, with cushioning and support properties. It can be worn with both aerobic and anaerobic conditions, which is more convenient."
picture comes from the official website.
shoes have also become popular in the gym. How common are it? The aforementioned fitness user has to attend 1-2 group classes almost every day. She often sees three or four students in the same class, wearing the same white Cloud X to attend classes.
In fact, although the Asia-Pacific market has always accounted for a low proportion in total revenue, and has been above 5% in the past two years, there is a lot of room for growth - the growth rate in Q1 this year reached 125%. Judging from On Aopa’s actions, it can also be seen that his attention to the Asia-Pacific, especially the Chinese market.
OnOnOn entered the Chinese market in 2018, but it opened the world's first offline brand retail store in China in 2019, even earlier than the first flagship store in New York. In Onpa's judgment, retail stores will become the main pillar of growth in China. Therefore, in addition to cooperating with retail brands such as Sanfu Outdoor , since 2019, On Ampou has opened eight direct-operated stores in China, half of which are opened in 2021.
In fact, Hoka One One, another sports brand that has become popular in recent years, has also chosen to open the world's first experience store on Suzhou , and in the next five years, it plans to open 200 offline stores in China. However, compared with the Hoka One One, which became popular at the same time, there are very obvious differences in the operation and expansion styles of the two in China.
Hoka One One focuses more on emphasizing its own trendy attributes. In addition to sponsoring off-road, marathons and other events, it not only collaborates with a large number of trendy brands, but also invites artists such as Shawn Yue to promote it. In the localization field, it will also launch national trend color schemes including Sun Tzu's Art of War, Chinese Red and other elements for the Chinese market.
and OnOnPao's operating method are obviously more perpendicular to the sports circle and emphasize their own mid-to-high-end attributes.
In China, On Run Club has established its own user community. The eight offline stores currently have regular sports activities such as Friday runs, Christmas Eve parties, etc., and in these activities, users can try on On Run Club's shoes for free - this style of playing is exactly the same as lululemon.
On Running Activity.The objects of the
On Anpao event cooperation are mainly fitness brands and platforms, including Super Orangutan , Yuepao Circle, Ai Burning, etc. On social platforms, the promotion partners are mainly sports bloggers, and they will also find celebrity cooperation such as Huang Lei , Bai Baihe , etc. that are more in line with the tone of middle-class people.
These operating methods show that the people that On Aopa wants to reach are those who exercise at high frequency, have the ability to consume, and pursue equipment quality. The endorsement of by professional athletes will obviously enhance the trust of this group of people.
The aforementioned senior fitness user initially looked for comprehensive training shoes on Xiaohongshu and saw this new brand, but this was not enough to allow her to make a purchase decision. But during class in the gym, she found that many students and coaches were wearing this shoe, and there were also constant recommendations in the fitness group, which made her finally buy the shoes in installments.
Some sports bloggers also mentioned that although it is not as deep as the localization of Hoka One One in China, the CloudMonster launched by Onopa this year has a very soft foot feeling, which is more in line with the preferences of Chinese people than previous products.
OnOnOnThe new product of CloudMonster this year.
's vertical products and operations directly promoted the growth of OnOnPa's Chinese market. According to its 2021 annual report, OnOnPa's net sales in Asia-Pacific region increased by 85.8%, mainly driven by strong sales growth in China. In the fourth quarter of this year, On Ampou will also open its largest store in China in Shanghai Xintiandi.
niche is easy to become popular, but the road to breaking through the circle is long and
For Onpa itself, as a new brand, it has proved that new brands can also show their strengths in the fiercely competitive running shoes field. However, this also brings another question: when On Amp gradually enters mainstream sight, can it maintain such rapid growth?
In fact, thanks to the imagination space brought by the high growth rate, OnAnpai's price-to-sales ratio once reached 18 times. Last year, media analysis from the outside network showed that this valuation was close to that of a technology company, not a consumer goods company. Therefore, once its subsequent growth slows down, its market value is very likely to face a shrinking situation. The prediction of
is also becoming a reality. Although according to the Q1 2022 financial report, On Ampau's revenue still maintains a growth rate of 67.9%, the market value of On Ampau has shown a significant decline since this year, with its current market value of only US$6.4 billion. If the story of high growth continues to be told, On Amp must constantly find the gap in the market, which of course also includes opening up new regional markets. Currently, in the regional market of Onupo, Europe and North America account for 41% and 53% respectively.
2022 Q1 Anpao Financial Report
Asia-Pacific market accounts for only 5.2% of revenue. But this also shows that On Aopa still has a lot of room for growth in this area. Brands such as Nike and Adidas account for more than 30% of the sales in the Asia-Pacific market.
In the yoga track, it is difficult for Lululemon to find a second alternative. But in the running shoe track with old brands and fierce competition, Onangpao is difficult to be so competitive.
This can be seen from the fact that the biggest hit on On Aopa is a comprehensive training shoe rather than a professional running shoe. Although On Ampano mentioned in its financial report that it will continue to increase its investment in R&D in the future, many respondents told 36Kr that if you look at performance and technology, On Ampano will find it difficult to compete with professional old brands in the running field such as , Sorconi, and Asics.
From an operational perspective, On Anpa's actions are far less frequent than lululemon. According to people familiar with the matter, On Amp has not invested heavily in China online, and is still mainly engaged in offline community activities. Lululemon will carefully seize and operate fitness people by appointing fitness coaches, sports KOLs, etc. as store ambassadors, while On Ampau's operating method is obviously relatively single.
is the price that hinders it from further breaking the circle. In OnOnPao's current product matrix, the lowest priced product also costs 990 yuan. The price difference between of different series products is not much , and it is basically concentrated in the price of of 1,000-2,000 yuan, with .This year, On Amp’s first joint series partner was chosen by the luxury brand LOEWE.
Referring to the actions of Lululemon and Under Armour , many foreign sports brands entered China, first with high posture and then sharply reduced prices. It is still difficult to say whether On Amp can maintain the current price system. The epidemic has brought huge sales pressure. Even Lululemon, which has always maintained a high price, has begun to frequently offer large-scale discounts in major promotion nodes such as 38th and 618th.
At present, On Anpa is still a new face in China. When it has the ambition to become a behemoth, how to balance the relationship between sales, competition and brand tone will become a question that On Anpa needs to answer.
