# On Holding pushes DTC mix past 38%, captures 11 percentage points more margin than wholesale *Swiss performance brand uses owned channels to defend premium positioning and fund product reinvestment.* By **Jenny Huang Goodman MPA MSc MHSA, Principal** — The Stash Edge, Hako Shikin LLC. Published 2026-09-17. Canonical: https://www.pops4.com/stash/articles/on-holding-2026-09-17t12-6 Subject: On Holding Tags: dtc, margins, pricing, distribution, premium positioning --- On Holding reported that direct-to-consumer revenue now represents more than **38%** of total sales, according to TradingView analysis of the company's financials. The shift has widened gross margin by approximately **11 percentage points** compared to wholesale distribution, strengthening the Swiss running brand's ability to hold premium price points and fund continuous innovation cycles. On operates **228 branded stores** globally and maintains a deliberate portfolio split: DTC channels (owned retail and e-commerce) alongside selective wholesale partnerships with specialty running shops and premium department stores. The brand protects map pricing across all touchpoints, ensuring a customer who pays **$180** for a Cloudmonster in Zurich sees the same ticket in Chicago and on the company's own site. That consistency, combined with the margin lift from cutting out intermediary markups, gives On room to reinvest in materials research and athlete sponsorships without compressing unit economics. The mechanism is straightforward: every dollar a customer spends in an On store or on the brand's website flows through at a **60-70% gross margin**, compared to **48-52%** when the same shoe moves through a wholesale account. On keeps the retailer's cut—typically **40-50%** of the end price—and uses that cash to underwrite technical development like the brand's Helion superfoam and to sponsor visible athletes including Hellen Obiri and Zach Bitter. The wholesale channel still matters for discovery and geographic reach, but the DTC engine funds the brand's premium narrative. A small physical-product brand can run the same architecture at modest scale. Start with a Shopify storefront priced at **$39/month** and list your hero SKU at the full retail price you want the market to recognize—no launch discounts, no Amazon race-to-the-bottom. Simultaneously, approach **three to five** specialty retailers whose customers match your target profile and offer them terms: **50% off wholesale**, minimum opening order of **12 units**, and a signed agreement that they will not advertise your product below map. Ship those accounts, but direct all owned marketing—email, Instagram, SMS—to your DTC site. When a retailer moves inventory, they reorder. When a customer finds you in-store and later visits your site, they see the same price and you capture the next purchase at full margin. The second move is to resist platform marketplaces for your core SKU. On sells through its site and owned stores first, using wholesale as a curated discovery layer rather than a volume dump. A founder working alone can mirror this by keeping the flagship product off Amazon and instead using that channel only for accessories or entry-tier variations that carry your brand name but not your hero margin. Protect the premium SKU for channels you control, where you collect the customer email and the full economics. When your DTC mix crosses **30%**, you have enough margin cushion to test higher-cost materials, better packaging, or a second colorway without waiting for a wholesale PO to fund it. The broader pattern is simple: distribution is a margin decision, not just a reach decision. Every channel you add changes your unit economics and how much cash you have to improve the product. On built its DTC share point by point, and now that share funds the next generation of foam and the next athlete signing. A small brand does the same thing at **100 units** instead of **100,000**—own the customer file, defend the price, and let the margin delta pay for what comes next. ## The takeaway DTC isn't just another sales channel—it's an **11-point margin gain** that funds your product roadmap without raising prices. --- ## 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