The high-performance footwear market is witnessing a tectonic shift as On Running operationalizes its state-of-the-art robotic assembly facility in Busan, South Korea. This move represents a strategic departure from traditional labor-intensive Asian manufacturing hubs. By deploying proprietary robotic units, the brand aims to drastically shorten lead times, which typically span several months in the conventional footwear supply chain.
The Busan facility serves as a blueprint for planned regional hubs in North America and Europe, allowing the company to move production closer to its primary consumption centers. This ‘nearshoring’ strategy is designed to mitigate the high freight costs and port congestion that have historically hampered the inventory turnover of premium sportswear brands.
Navigating tariffs and supply chain resilience
In an era defined by escalating trade protectionism and geopolitical instability, the transition to automated localized manufacturing offers a critical buffer. With the US government maintaining a hardline stance on footwear tariffs, On Running’s decentralized model provides a structural advantage over competitors reliant on centralized Southeast Asian production.
Industry analysts estimate, localized robotic production could reduce shipping-related carbon emissions by up to 30 per cent, aligning the brand with tightening ESG mandates in the European Union. Our investment in automation is a direct response to the need for speed and localized resilience, noted a company spokesperson. By utilizing localized ‘Speedfactories,’ the brand can react to consumer trends in real-time, effectively reducing the risk of overstocking and seasonal markdowns that often erode margins in the retail sector.
Strategic footprint and market trajectory
Founded in Zurich in 2010, On Running specializes in premium performance footwear and apparel featuring its signature CloudTec technology. The company primarily targets the North American and European markets, where it has seen triple-digit growth in its direct-to-consumer channel. With a 2026 revenue target exceeding $3.5 billion, On continues to expand its retail footprint through flagship stores in major global cities while maintaining a robust presence in specialty running outlets.
