How On creates its spray-on running shoes

Swiss sneaker company On has launched LightSpray, an innovative automated manufacturing technique that utilizes robots to spray polymer onto foot-shaped molds, producing seamless and laceless shoe uppers in approximately three minutes. This process drastically reduces manual labor, enabling On to scale production from thousands to potentially millions of pairs. The company is opening its first LightSpray factory in Zurich, a development analysts view as providing On with a significant competitive advantage in the footwear market.

Analysis

On Holding AG (ONON) has developed a proprietary manufacturing technology, LightSpray, which analysts identify as a significant competitive advantage. This fully automated process utilizes robots to spray polymer onto molds, creating a seamless shoe upper in approximately three minutes, a drastic reduction from the estimated 200 manual touchpoints in traditional footwear production. The company is operationalizing this innovation by opening its first dedicated factory in Zurich, signaling a strategic commitment to scaling the technology from an initial capacity of thousands of pairs to a target of millions. This shift towards automation has direct implications for On's cost structure, potentially leading to substantial gross margin improvement and enhanced supply chain resilience. The stated goal of mass production suggests a long-term strategy to leverage this technological edge across a wider product portfolio, fundamentally altering its operational model and market positioning.

Key Decisions for Investors

• Investors should view the LightSpray technology as a potential long-term catalyst for margin expansion and a key differentiator that could justify a premium valuation for ONON relative to peers.
• Monitor future earnings calls and company reports for specific metrics on production volumes from the new Zurich factory and any quantifiable impact on cost of goods sold (COGS) to validate the technology's economic benefits.
• While the innovation is a clear positive, the recent departure of former co-CEO Marc Maurer, a key proponent of the technology, introduces a factor to watch regarding strategic execution and leadership continuity on this core project.