# On Holding drives 28% DTC revenue growth in Q3, bypassing wholesale margin squeeze *Swiss running brand's owned-channel push defends premium pricing while competitors fight retail markdowns.* By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC. Published 2026-09-14. Canonical: https://www.pops4.com/stash/articles/on-holding-2026-09-14t09-4 Subject: On Holding Tags: dtc, channel-strategy, premium-positioning, margin-defense, retail --- On Holding reported direct-to-consumer sales grew **28% year-over-year** in its third quarter, according to TradingView, as the premium running shoe and apparel brand leans harder into owned channels while wholesale partners face margin pressure and promotional cycles. The Swiss company, known for its CloudTec cushioning technology and roster of professional athlete endorsers, is using DTC expansion to preserve brand positioning and avoid the markdown trap squeezing rivals dependent on multi-brand retail. The company operates **230 owned retail stores** globally and continues to invest in its ecommerce platform, per the source. DTC now represents a growing share of total revenue, insulating On from the promotional churn that has eroded margins for brands reliant on wholesale partners who bundle premium product into seasonal sales events. The channel shift allows On to control pricing, customer data, and the full brand narrative from first click to unboxing. The mechanism is straightforward. Premium physical products face two threats in wholesale: retailers discount to move volume, and competitors flood the same shelf space with similar styling at lower price points. By routing more customers to owned stores and its own site, On captures the full retail margin, builds a direct relationship, and can test new colorways or limited releases without negotiating SKU slots with a buyer. The brand also collects zero-party data on fit preferences, purchase frequency, and lifetime value, which wholesale sellthrough reports cannot provide. When a customer buys a **$170 Cloudmonster** sneaker on on.com instead of at a department store, On keeps the retail markup and learns whether that buyer wants trail shoes next or a running jacket. The wholesale channel still matters for discovery and geographic reach, but On is using DTC as the margin lever and the retention engine. Competitors who cannot or will not shift mix toward owned channels are stuck negotiating wholesale terms each season while On invests DTC profit back into product development and brand marketing that drives more customers to its own doors. A small physical-product brand can run the same play on modest budget by treating owned channels as the profit center and wholesale or marketplace presence as the top-of-funnel awareness driver. Start by listing product on Amazon or in a regional specialty retailer to generate search volume and early proof, then capture repeat buyers on your own Shopify or WooCommerce site using a **10% discount code** for first direct purchase. Email the wholesale buyer post-purchase with the code and a reason to switch: early access to new releases, free returns, or a loyalty point for every dollar spent. Route all paid social and influencer traffic to the owned site, not the marketplace listing. Test a pop-up or booth at a local market or trade show, collect emails, and convert those leads on your site within **72 hours** using a limited-run product or colorway not available elsewhere. The unit economics improve immediately—you keep an extra **30-50%** margin per sale—and you own the customer file for future launches. Run this loop for **90 days**, measure repeat rate on owned versus wholesale channels, then shift ad spend and inventory toward the higher-return path. The goal is not to abandon wholesale but to make it the audition, not the main stage. On Holding's playbook proves the pattern scales: use wholesale for reach, own the high-margin repeat relationship, and let channel mix protect pricing power when the market turns promotional. ## The takeaway Premium brands grow margin and retain pricing power by shifting repeat buyers from wholesale to owned DTC channels. --- ## Publisher **Hako Shikin LLC** — Virginia Beach, Virginia. Founded 1997. ASI 217876 · DUNS 18-204-6339. Principal and author: **Jenny Huang Goodman MPA MSc MHSA**. - Author: https://www.huanggoodman.com/about - LLM context: https://www.pops4.com/stash/llms.txt - MCP endpoint, for AI agents: https://mcp.pops4.com/mcp - Client dashboard: https://dashboard.pops4.com/ - Catalogue: 70,000+ products, 200+ brands