Title: On Holding AG Expands Footprint with First Hong Kong Store Amidst Federer’s Backing
In a strategic move aimed at tapping into Hong Kong’s burgeoning market, On Holding AG, the US-listed Swiss sneaker maker backed by tennis icon Roger Federer, is set to inaugurate its maiden store in the vibrant Central business district. The decision underscores a broader trend among brands eyeing Hong Kong as a resilient shopping haven amidst uncertainties elsewhere, particularly in China.
With a spacious 3,000 square feet locale secured at H Queen’s, owned by Henderson Land Development Co., On Holding AG embarks on a promising venture, leveraging the city’s appeal to affluent residents and tourists alike. Despite the rental surge – now at HK$600,000 per month – On Holding AG remains undeterred, banking on Hong Kong’s enduring allure amid economic fluctuations.
The move mirrors a renewed interest in Hong Kong’s commercial landscape, once characterized by exorbitant rents. Discounts spurred by the pandemic-induced downturn have lured premium brands seeking lucrative deals, signaling a revival after political unrest and stringent COVID measures dampened the city’s allure. Chanel, Christian Dior, and Hermes International SCA are among the luxury behemoths expanding their presence, cementing Hong Kong’s status as an indispensable retail hub.
On Holding AG’s expansion aligns with its overarching strategy, marked by a transition from third-party retailers to proprietary stores. Despite a recent stock setback triggered by modest sales growth projections, the company remains steadfast in its expansion drive. Co-CEOs Martin Hoffmann and Marc Maurer’s ambitious plans include adding 17 to 19 new locations globally, a testament to their confidence in the brand’s trajectory.
Federer’s association with On Holding AG adds a touch of star power, amplifying the brand’s visibility and appeal to discerning consumers. His endorsement underscores the brand’s commitment to excellence and innovation, resonating with athletes and aficionados alike.
As On Holding AG embarks on its Hong Kong venture, it not only reinforces its global footprint but also heralds a new chapter in the city’s retail resurgence. With Federer’s backing and a strategic market entry, On Holding AG is poised to make significant strides in Hong Kong’s dynamic retail landscape, affirming its status as a frontrunner in the competitive sportswear market.