【和訳：FORM-F1】On Holding AG（ONON）オン #目論見書
As filed with the Securities and Exchange Commission on August 23, 2021
2021年8月23日に米国証券取引委員会に提出されたものです。
Overview 概要
Our Mission 私たちの使命
Our Mission
On was born in the Swiss Alps with one goal: to revolutionize the sensation of running based on the radical idea of soft landings followed by explosive take-offs. Or, as we call it, running on clouds.
それは、ソフトランディングと爆発的なテイクオフを同時に行うという斬新なアイデアに基づいて、ランニングの感覚に革命を起こすことでした。私たちは、「雲の上を走る」と呼んでいます。
Innovation is at the core of On's foundation and we focus our efforts on three main areas: performance, design and impact. We aspire to increase performance for athletes and everyday consumers by applying smart, distinct and sustainability-focused designs to our products.
We believe evolving consumer preferences towards more active, healthier lifestyles and the casualization of fashion are the primary drivers of growth in today's approximately $300 billion global sportswear industry. We believe our ethos and capabilities position On to benefit from these secular shifts.
Our team culture is built around five core values or, as we call them, spirits: explorer, athlete, team, survivor, and positive spirit. These five spirits guide us in our approach to making a positive contribution in the right way. For ourselves. For runners. And for our planet. We believe how we do things is just as important as what we do.
As a brand built around encouraging and supporting movement, we believe that it is the human spirit, not just the human body, that drives people to dream the big idea and move to make that dream a reality. Everything we do at On is designed to deliver on our mission:
Our History: Born in the Swiss Alps 私たちの歴史：スイスアルプスで生まれた
Our History: Born in the Swiss Alps
As a professional athlete, three-time World Champion and six-time Ironman Champion, Olivier Bernhard devoted himself to creating a running shoe that would give him the perfect running sensation. Olivier’s quest gave rise to the symbiosis of running experience and engineering expertise that would become On’s CloudTec technology. Dozens of prototypes were developed, but the basic concept – cushioned landing, explosive take-off—remained paramount throughout. It was this unique running sensation that convinced Olivier’s friends Caspar Coppetti and David Allemann to join Olivier in his quest. Together with Olivier, they formally established On in Zürich, Switzerland in January 2010.
世界選手権3度、アイアンマン6度の優勝を誇るプロアスリートとして、オリビエ・ベルンハルトは、完璧なランニング感覚を実現するランニングシューズを作ることに専念していました。その結果、ランニングの経験とエンジニアリングのノウハウが融合し、Onのクラウドテックテクノロジーが誕生したのです。何十ものプロトタイプが開発されたが、基本コンセプトである「クッション性のある着地と爆発的な離陸」は、常に最も重要なものであった。オリビエの友人であるカスパー・コペッティとダヴィッド・アレマンは、この独特の走りの感覚に惹かれ、オリビエの探求に加わることになる。そして、2010年1月、スイスのチューリッヒにOnを設立した。
Just a month after the company was founded, early On prototypes won the ISPO Brand New Award, one of the most important prizes for innovation in sport. Test runners were enthusiastic and spoke of running on clouds. In July 2010, the first specialty running stores carried On shoes on their shelves.
From these humble beginnings in Zürich, On set out in 2010 with a big ambition: to change the world of running for professionals and amateur runners alike. As On started to gain traction in several key markets, the three co-founders brought on Marc Maurer and Martin Hoffmann as equal partners in 2013 to scale and professionalize the business. Together, we have built a distinct culture that empowers the On team to make decisions and foster innovation, allowing On to rapidly scale while retaining the entrepreneurial mindset of a startup. We believe this partnership approach to leadership has been an integral part of On's success over the past decade, and we expect it to continue.
Our Present: Achieving Global Scale 私たちの現在：グローバルな規模を実現する
Our Present: Achieving Global Scale
On is a premium performance sports brand rooted in technology, design and impact that has built a passionate global community of fans across more than 60 countries. We have a selective wholesale presence in approximately 8,100 premium retail doors globally and we generated 37.7% and 36.6% of our net sales in 2020 and the six-month period ended June 30, 2021, respectively, through our direct-to-consumer (“DTC”) channel, which is primarily driven by our website.
Onは、テクノロジー、デザイン、インパクトに根ざしたプレミアムパフォーマンススポーツブランドで、60カ国以上で熱狂的なファンのグローバルコミュニティを構築しています。当社は、全世界で約8,100のプレミアム小売店で選択的に卸売を行っており、2020年および2021年6月30日に終了した6カ月間の純売上高の37.7％と36.6％を、主に当社のウェブサイトが担う消費者への直接販売（「DTC」）チャンネルで生み出しています。
We believe we are one of the fastest-growing scaled athletic sports companies in the world, having grown our net sales at an 85% compound annual growth rate (“CAGR”) from inception through 2020 to CHF 425.3 million for the year ended December 31, 2020. Our growth has continued in 2021, with net sales growing by 84.6% to CHF 315.5 million for the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020. We focus on providing a premium product experience to customers wherever they are, and our brand resonates with our loyal customers around the world. As a Swiss company with a small home market, we opted to expand globally from the very beginning, and today we have a fast-growing presence across a number of international markets including, among others, Germany (first entered in 2011), the United States (2013), Japan (2013), China (2018) and Brazil (2018). We believe this global presence within the large global footwear and apparel market positions us well for future growth.
(1) For the six-month period ended June 30, 2021. Net sales by region is determined based on the location of the customer.
We believe our Swiss heritage and our focus on innovating at the cutting edge of performance, design and impact differentiates us from other sports brands. We are committed to creating premium products that deliver strong performance. Our relentless culture of innovation has driven us to repeatedly introduce numerous groundbreaking technologies such as CloudTec (2010), purpose-engineered Speedboard (2013), Lightweight Trail Missiongrip (2016), ultra-lightweight yet versatile running apparel (2016), Helion Superfoam (2019) as well as Embedded CloudTec (2019) and the Invisible CloudTec (2020). These innovations are designed to change the experience of running and create continuous excitement for our fans as we bring new products to market.
The exceptional performance, comfort and design of On footwear and sports apparel has led runners and a broader set of consumers to adopt On's products in their everyday lives. We have supported their strong demand by creating performance products for an active lifestyle and exploration of nature and trails. Our Performance All Day range of products fuses function and aesthetics and includes “The Roger” franchise, which has been developed with Roger Federer after he joined On as an active co-entrepreneur in 2019 and investor. While developing a competition tennis shoe with Roger, he suggested extending On's patented technology to a tennis sneaker family to re-invent how age-old tennis sneakers are made. This is enriching our performance product offering and we believe Roger's perspectives and insights as a professional athlete will help improve our product development, marketing and fan experiences. Our Performance Outdoor products embrace a new approach to taking on the mountains: light and fast, with shoes and outdoor apparel engineered to free you from the weight and bulk of traditional outdoor gear.
Athletes know that it takes significant effort to make performance look effortless. The On apparel range includes ultralight and stretchable fabrics, intelligently engineered key details and a style designed equally for the track and the street. Our “Essentials” range includes the running jacket, running shorts, sweatpants and other items that are versatile enough to be worn during running, exploring or simply during all-day activities, which is why we believe they are favored by our fans and continue to drive repeat purchases.
All our products are engineered in Switzerland, and our in-house research and development teams work on the innovation, engineering, design, and testing of our products. With our heritage in the Alps, making a positive environmental impact has been a core value for our business since inception. On aims to minimize the environmental footprint of all our activities, with a special focus on using preferred materials, CO2 reduction and life-cycle circularity. In 2020, we announced Cyclon, our first 100% recyclable shoe, which is only available through an innovative monthly subscription model. Through its groundbreaking design and subscription model, Cyclon has already won the 2021 ISPO Award for Product of the Year and Sustainability Achievement.
On is built on authenticity as our loyal following of professional athletes has inspired amateur runners and other fans to join the On community, which is growing larger every day. This community is full of passion, whether in a running club, a weekend jog, a trip to the coffee shop or competing at the highest levels of athletic competition. Our Net Promoter Score (“NPS”) of 66 is among the highest of all consumer facing brands surveyed, and more than 75% of customers recommend On to their friends.
Our distribution strategy seeks to meet runners wherever they are. At the time of our founding, we first started selling in specialty running stores where discerning runners discovered On and became committed fans of our brand. Over time, we expanded our product range and broadened the range of our distribution partners. Today, our products are present in some of the most reputable outdoor, fashion and lifestyle retailers in the world, in addition to specialty running stores. In 2020 and the six-month period ended June 30, 2021, our wholesale channel accounted for 62.3% and 63.4% of our net sales, respectively. With our community and brand awareness growing globally, we organically started to scale our DTC channel through on-running.com over the last 9 years. DTC sales have increased significantly. Our DTC channel, which includes our e-commerce sites, a recently opened flagship retail store in New York City and four smaller format retail stores in China, generated 37.7% and 36.6% of our net sales in 2020 and in the six-month period ended June 30, 2021, respectively. Through our DTC channel, we create an immersive customer experience from educational product innovation content to inspirational storytelling. Through these initiatives, we believe that we build deeper customer connection and loyalty and learn from data, while also realizing attractive margins.
Recent Financial Performance 最近の業績
Recent Financial Performance
We believe the power of our business model and our ability to profitably scale our operations is reflected in our financial performance. In 2020, we had net sales of CHF 425.3 million, gross margin of 54.3%, gross profit of CHF 231.1 million, net loss of CHF 27.5 million, Adjusted EBITDA Margin of 11.7% and Adjusted EBITDA of CHF 49.8 million. In the six-month period ended June 30, 2021, we had net sales of CHF 315.5 million, gross margin of 59.3%, gross profit of CHF 187.2 million, net income of CHF 3.8 million, Adjusted EBITDA Margin of 15.0% and Adjusted EBITDA of CHF 47.3 million.
当社のビジネスモデルの威力と、収益性の高い事業規模を実現する能力は、当社の業績に反映されていると考えています。2020年の売上高は4億2530万スイスフラン、粗利益率は54.3％、粗利益は2億3110万スイスフラン、純損失は2750万スイスフラン、調整後EBITDAマージンは11.7％、調整後EBITDAは4980万スイスフランとなりました。2021年6月30日に終了した6ヶ月間では、売上高3億1550万スイスフラン、粗利益率59.3％、粗利益1億8720万スイスフラン、当期利益380万スイスフラン、調整後EBITDAマージン15.0％、調整後EBITDAは4730万スイスフランとなりました。
We grew our net sales at a 66% CAGR from 2018 to 2020, had net income of CHF 5.5 million in 2018 compared to net loss of CHF 27.5 million in 2020 and Adjusted EBITDA grew at a 74% CAGR from 2018 to 2020, while our gross margin remained flat from 54.2% and 54.3%, respectively, and Adjusted EBITDA Margin expanded from 10.8% to 11.7%, respectively, over the same period. We grew our net sales at a 62.6% CAGR from the six-month period ended June 30, 2019 to the six-month period ended June 30, 2021 and had net income of CHF 8.2 million in the six-month period ended June 30, 2019 compared to net income of CHF 3.8 million in the six-month period ended June 30, 2021, while our Adjusted EBITDA grew at a 70.3% CAGR from the six-month period ended June 30, 2019 to the six-month period ended June 30, 2021. In addition, our gross margin grew from 52.9% to 59.3%, and our Adjusted EBITDA Margin expanded from 13.7% to 15.0%, in each case, over the same period.
Adjusted EBITDA and Adjusted EBITDA Margin are non-IFRS measures and should not be considered in isolation or as a substitute for other financial measures calculated and presented in accordance with IFRS, including net income / (loss). For the six-month period ended June 30, 2021, we had net income of CHF 3.8 million. For 2020 and 2019, we had a net loss of CHF 27.5 million and CHF 1.5 million, respectively. For 2018, we had net income of CHF 5.5 million.
Our Competitive Strengths 競争力のある強み
Our Competitive Strengths
We believe that the following strengths are central to the power of our brand and business model:
私たちは、以下のような強みが、当社のブランド力・ビジネスモデルの中核をなしていると考えています。
In-house Innovation Fuels Portfolio of High Performance Products 自社開発のイノベーションが生み出す高性能製品群
In-house Innovation Fuels Portfolio of High Performance Products
From its founding, On's objective has been to revolutionize the sensation of running. Transforming how we experience one of the most basic skills of the human body required a radical approach to innovation. We focus our innovation efforts on the areas of performance, design and impact, as we aspire to increase performance for athletes and consumers, apply smarter design thinking to our products and create the path to a more sustainable future.
Onは創業以来、ランニングの感覚に革命を起こすことを目標としてきました。人体の最も基本的な機能の一つであるランニングの感覚を変えるには、革新的なアプローチが必要でした。私たちは、パフォーマンス、デザイン、インパクトの分野にイノベーションの焦点を当て、アスリートや消費者のパフォーマンスを向上させ、製品にスマートなデザイン思考を適用し、より持続可能な未来への道を切り開くことを目指しています。
In 2010, we introduced our innovative, patented technology, CloudTec, to the world. Since then, we have continuously innovated to create a wide portfolio of award-winning products and proprietary technologies. We pioneered the use of flex plates in all of our shoes as early as 2010. In 2013, we introduced the first injection molded, purpose-engineered Speedboard to transition impact forces into explosive push-offs. We introduced the Cloud model with the Zero-Gravity outsole in 2014 to offer an ultralight product. We then developed Missiongrip in 2016 to bring On to the trails and outdoors and also introduced the Hybrid Short and Lightweight Jacket, our first versatile, ultra-lightweight running apparel with advanced fabrics. In 2019, we introduced the Helion superfoam to add even better cushioning to our shoes without compromising performance. With the introduction of the Cloudstratus in 2019 and the patented sequential CloudTec solution, we once again provided additional cushioning for runners seeking added support. In 2020 we launched the Cloudboom with an optimized carbon infused Speedboard to power our professional athletes and competitive runners. In the same year, with the launch of The Roger franchise, we established that CloudTec can be engineered for lateral movements and to be completely invisible without losing On’s innovative walking and running sensation.
Our in-house research and development team includes a talented team of sports scientists, engineers, material experts and designers who work out of the On Labs in Zurich and Ho-Chi-Minh City. We aim to deliver a constant stream of innovations inspired by the product vision of the On team, the needs of our world-class athletes, customer feedback and advances in materials and manufacturing technologies. We also partner with leading universities, such as the Swiss Federal Institute of Technology and the Fraunhofer Institute, and with innovative suppliers to co-develop new technologies and introduce them to market. These innovations and the performance they deliver have established On as a trusted brand for world-class athletes, amateur runners and customers looking for performance-infused footwear, sportswear and accessories.
At On, we aim to give each product a special advantage by including performance-enhancing technology, such as bringing running technology into street sneakers or adding stretch and running-grade breathability to a hiking jacket. On products have an iconic design and are versatile to use, as we synergistically combine engineering solutions with a minimalist Swiss design aesthetic. We believe our relentless focus on innovation, design and Swiss quality leads to advanced products that allow us to maintain premium price points and encourage repeat purchases among our customers.
Authentic, Premium Global Sports Brand 本格的なプレミアム・グローバルスポーツブランド
Authentic, Premium Global Sports Brand
The On brand is defined by innovation and a belief that sports and movement ignite and elevate the human spirit.
Onブランドは、スポーツとムーブメントが人間の精神に火をつけ、高めるという信念とイノベーションによって定義されています。
Our roots in Zurich, near the Swiss Alps, gave On and our team a special appreciation for the outdoors, nature and movement from the very beginning. Additionally, the relatively small domestic Swiss market drove On's early quest for international expansion. On's Swiss heritage is strongly reflected in many aspects of the brand, from the Swiss-engineered technology and design to the focus on impact and the global profile that the brand has already achieved.
We have been privileged to receive very early support from a global team of world-renowned athletes and brand ambassadors who continue to showcase the advances in our innovation through their exceptional performances on some of the sports world's largest stages. Whether it is Nicola Spirig who won the Olympic Triathlon silver medal in 2016 or Javier Gomez Noya who became the Triathlon World Champion Long Distance in 2019, athletes who push their limits trust our brand.
More recently, the On Athletics Club (“OAC”), a partnership between On and a team of eight world class runners, was formed for the purpose of supporting athletes in their quest to become champions. The needs of these athletes spur our innovation and development of products that reinforce the foundation of our brand.
On's early success came from word-of-mouth recommendations, and we have continued to develop storytelling through the rapidly growing digital channels, social networking media and public relations, which has proven to be a more authentic and effective brand marketing strategy than traditional advertising. On our journey, we have formed a deep connection with our global community through inspirational stories, immersive event series, feature-length award-winning films, educational retail experiences and thoughtful user interface. We believe our deep connection with our customers is evidenced by their love for the brand, level of engagement and loyalty, which are among the highest in the industry. Along the way, we have hired more than 100 talented creative team members who are passionate about storytelling and work closely with our athletes, engineers and product designers to bring the performance and experience of our products to life. This is why performance, engineering, design and creativity form an inseparable bond at Team On. Over the last few years, this has driven significant attention to the On brand with stories featured on the sports front page of The New York Times, digital broadcasts that have more than half a million fans tuning in live and queues of sneaker fans building in front of tastemaker doors in New York, Tokyo and Shanghai.
Global Community of Loyal Fans 忠実なファンによるグローバルコミュニティ
Global Community of Loyal Fans
On is a beloved running brand with a global community of millions. The foundation of our community is our relationship with our runners that range from marathoners to weekend joggers. Our global initiative to host events for local run crews has further empowered our loyal fans to become advocates of our brand, and we have hosted 132 events in 2019. Our customers’ affinity for our products is demonstrated by the fact that 43% of our customers own more than one pair of On shoes and 75% have recommended On to somebody else. Our fans are highly engaged through social media as well, with 3.5% of our users on Instagram acting on our posts.
Onは、数百万人のグローバルコミュニティを持つ、愛されるランニングブランドです。私たちのコミュニティの基盤は、マラソン愛好家から週末のジョギング愛好家まで、幅広いランナーとの関係です。地域のランクルーのためのイベントを開催するグローバルな取り組みは、忠実なファンが私たちのブランドの支持者になることをさらに後押しし、2019年には132のイベントを開催しています。お客様の当社製品への親和性は、43％のお客様がOnのシューズを2足以上所有し、75％のお客様がOnを誰かに勧めたことがあるという事実が証明しています。ソーシャルメディアを通じてのファンも多く、Instagramではユーザーの3.5％が私たちの投稿に対して行動しています。
Despite being founded just over ten years ago, On has significant global reach with 49% of our 2020 net sales to customers in North America, 44% to customers in Europe, 5% to customers in Asia-Pacific and the remaining 2% to customers in the Rest of the World. In the six-month period ended June 30, 2021, 52% of our net sales were to customers in North America, 41% to customers in Europe, 6% to customers in Asia-Pacific and the remaining 1% to customers in the Rest of the World. We believe the On brand and our products resonate strongly with consumers globally, and we see very strong growth rates across our key markets. Compared to 2019 and despite the negative impact of the COVID-19 pandemic and a net loss of CHF 27.5 million in 2020 compared to a net loss of CHF 1.5 million in 2019, net sales growth in 2020 compared to 2019 was 46% in Europe, 86% in North America and 29% in Asia-Pacific. For the six-month period ended June 30, 2021, we had net income of CHF 3.8 million, compared to a net loss of CHF 33.1 million in the six-month period ended June 30, 2020, and net sales growth in the six-month period ended June 30, 2021 compared to the six-month period ended June 30, 2020 was 56% in Europe, 105% in North America and 154% in Asia-Pacific.
As our community has grown, we have successfully broadened our reach beyond running and trail athletes to outdoor enthusiasts, travel explorers and consumers with an active lifestyle. We believe our uncompromising approach to delivering an authentic and unmatched consumer experience resonates with a broad and diverse global consumer base that spans genders and generations. This global community is the driver of our “grassroots” marketing and the inspiration for our innovation.
Committed to Positive Impact ポジティブなインパクトへのコミットメント
Committed to Positive Impact
On is committed to growth from sustainable resource use. On has built an in-house team of experts which tracks the environmental footprint of all our activities through lifecycle analyses, identifies our largest levers for a positive impact and helps us set meaningful targets. We use recycled materials wherever available and work with our suppliers to create new opportunities to use circular or non-petrol- and non-food-chain-based materials. We have already made strong progress towards our goal of using 100% recycled polyester, 100% recycled polyamide and 100% organic certified natural materials by 2024.
オンは、持続可能な資源利用による成長を目指しています。オンでは、社内に専門家チームを設置し、ライフサイクル分析を通じてすべての活動の環境フットプリントを追跡し、プラスの影響を与えるための最大の手段を特定し、意味のある目標を設定できるよう支援しています。私たちは、可能な限りリサイクル素材を使用し、サプライヤーと協力して、循環型素材や非ペトロル・非フードチェーン型素材を使用する新しい機会を作り出しています。2024年までにリサイクルポリエステル100％、リサイクルポリアミド100％、オーガニック認証天然素材を100％使用するという目標に向けて、すでに力強い前進を遂げています。
We strive to create a majority of our products with a circular life cycle and are in the process of building up the logistics needed for an efficient back loop from consumers to our recycling partners. An important pilot project for circularity is Cyclon (currently available for pre-registration), our first high performance running shoe that is fully recyclable and made from over 50% bio-based materials. Cyclon will only be available as a subscription model to ensure we can reclaim and reuse the shoe's materials. This represents a significant milestone in our long-term quest to create a “closed loop” system for our products. Cyclon's CO2 footprint is 50% lower than an average On shoe and creates 90% less waste. We are currently introducing 100% recycled, FSC-certified cardboard packaging for footwear and 100% recycled HDPE plastic for apparel, further reducing waste.
We have committed to ambitious CO2 reduction targets that are approved by the Science Based Targets initiative (SBTi). All our top suppliers have committed to our Restricted Substance List (RSL) policy, which is aligned with the industry standard AFIRM Group and all our Tier 1 suppliers are publicly listed on our website.
Highly Complementary, Multi-Channel Distribution Strategy 補完性の高いマルチチャネル流通戦略
Highly Complementary, Multi-Channel Distribution Strategy
We consider our DTC and wholesale channels highly complementary and brand-enhancing.
私たちは、DTCと卸売のチャネルは相互補完性が高く、ブランドを強化するものだと考えています。
Our DTC channel, which represented 37.7% and 36.6% of our net sales for 2020 and the six-month period ended June 30, 2021, respectively, is primarily comprised of our own e-commerce platform, but also includes our platform on Tmall and JD.com in China, and the recently opened flagship store in New York City and four retail stores in China. We believe our e-commerce penetration is market-leading when compared to other leading global athletic footwear players. During 2020, our e-commerce platform recorded more than 60.4 million visits, representing a 136% increase compared to 2019. In the six-month period ended June 30, 2021, our e-commerce platform recorded more than 38.9 million visits, representing a 36.8% increase compared to the six-month period ended June 30, 2020. Our DTC channel is our fastest growing channel and has higher gross margins than our wholesale channel.
Our culture of innovation extends to the in-store experience. Our flagship store in New York City offers an explorative, immersive and tech-driven experience to customers. The store features a “Magic Wall” that scans shoppers' running styles in real-time and cross-references the customer's unique running attributes against a database of more than 50,000 runs to help them find the perfect On shoe for their running style and needs. We believe the innovation and personalization exemplified by this technology are core to our business and highly valued by our customers.
The wholesale channel accounted for 62.3％ and 63.4％ of our net sales for 2020 and the six-month period ended June 30, 2021, respectively, and we have built strong relationships with some of the most selective retailers in specialty running, outdoors, fashion and lifestyle. Notwithstanding our significant whitespace, our approach to wholesale expansion remains very disciplined, and we carefully select the best retail partners and distributors to represent our brand in a manner consistent with our ethos and premium positioning. As of June 30, 2021, our products are available at approximately 8,100 retail stores across more than 50 countries. More than 1,300 dedicated On shop-in-shops and brand corners allow consumers to have a physical interaction with our brand at wholesale doors. The majority of our wholesale partners are premium specialty stores that operate less than 5 retail stores and play an important role in establishing and reinforcing On's credibility in their respective communities.
Adaptable, Data-Driven, Industry-Leading Operations in Place to Support Future Growth 適応力があり、データ駆動型で、業界をリードするオペレーションで、将来の成長を支える
Adaptable, Data-Driven, Industry-Leading Operations in Place to Support Future Growth
From the very beginning, building a scalable and adaptable operating infrastructure was important to ensure that the right manufacturing, logistics and data capabilities were in place to efficiently support our future growth. Freight operations, warehousing and logistics are outsourced to trusted partners that we have worked with since our founding. Our manufacturing footprint is concentrated in South East Asia with most products originating in Vietnam. In 2020, 97% of our footwear was produced in Vietnam, while the remainder was produced in Indonesia, and in the six-month period ended June 30, 2021, all of our footwear products were produced in Vietnam. Trust, innovation, quality, lead times, flexibility, automation, social responsibility and impact have been our key focus areas in our longstanding partnerships with our footwear and apparel factories. Our in-house team in Vietnam works with our partners and ensures the quality of all the premium products that we design, innovate and develop. In 2020 and the six-month period ended June 30, 2021, approximately 63% and 38%, respectively, of our apparel and accessories products were manufactured in China, with the remainder being produced in Vietnam and Europe.
創業当初から、将来の成長を効率的にサポートするための適切な製造、物流、データ機能を確保するために、拡張性と適応性のある事業インフラを構築することが重要でした。貨物輸送、倉庫、ロジスティクスは、創業以来一緒に仕事をしてきた信頼できるパートナーにアウトソーシングしています。私たちの製造拠点は東南アジアに集中しており、ほとんどの製品はベトナムで生産されています。2020年には、フットウェアの97％がベトナムで、残りはインドネシアで生産され、2021年6月30日に終了した半期では、すべてのフットウェア製品がベトナムで生産されるようになりました。信頼、革新、品質、リードタイム、柔軟性、自動化、社会的責任、インパクトは、フットウェアおよびアパレル工場との長年のパートナーシップにおいて、私たちが重視してきた分野です。ベトナムの社内チームはパートナーと協力し、私たちが設計、革新、開発するすべてのプレミアム製品の品質を保証しています。2020年および2021年6月30日に終了した6カ月間、当社のアパレルおよびアクセサリー製品の約63％および38％がそれぞれ中国で生産され、残りはベトナムとヨーロッパで生産されています。
Given our belief that superior analytics will help us to make not only smarter but also more sustainable decisions, we have made early investments in an integrated, globally consistent, cloud based IT infrastructure that supports us to achieve profitable growth and manage the complexity of our business. Understanding global supply and demand patterns across our channels helps us to make informed, AI supported decisions, which helps us reduce overstock and produce exactly what our consumers want.
Positivity is one of our spirits, and therefore, we consider customer service a core competence. We believe our team delivers premium engagement with customers and builds relationships rather than just completing transactions. We have recently upgraded our ERP system to support our growth strategy, upgraded our dedicated CRM system to deliver integrated customer services and sales tools and expanded our warehousing and distribution coverage with automation.
Our adaptable supply chain, well established manufacturing and distribution partners and our global infrastructure allow us to seamlessly and rapidly scale our operations across diverse geographies and sales channels while ensuring delivery of superior quality products and services.
Partnership-Focused Leadership Model and Diverse Employee Base パートナーシップを重視したリーダーシップモデルと多様な従業員層
Partnership-Focused Leadership Model and Diverse Employee Base
Our co-founders, David Allemann, Olivier Bernhard and Caspar Coppetti, were industry outsiders when they set out to change the world of running. With passion and discipline, and together with our partners and Co-CEOs, Martin Hoffmann and Marc Maurer, we have grown On into a global brand with scalable operations and built a committed, high performing team.
私たちの共同創業者であるDavid Allemann、Olivier Bernhard、Caspar Coppettiは、ランニングの世界を変えるために出発したとき、業界のアウトサイダーでした。そして、パートナーである共同CEOのMartin HoffmannとMarc Maurerとともに、情熱と規律をもってOnをグローバルブランドへと成長させ、拡張性のあるオペレーションと、献身的で高いパフォーマンスのチームを築き上げました。
Since our founding, we have leaned heavily on the core tenets of the team spirit and partnership. The unique leadership structure that we have honed over the last decade differs from a traditional hierarchical model and includes David Allemann and Caspar Coppetti as Executive Co-Chairmen, our innovation-leader Olivier Bernhard as Executive Board Member, Martin Hoffmann as CFO and Co-CEO and Marc Maurer as Co-CEO. They are surrounded by a team of 14 highly talented senior leaders globally with 6 female leaders in key roles. Every senior leader has an individual mission, and with this structure, the team benefits from a rigorous decision making process that leverages the full strengths and capabilities of a diverse team in running the global business.
We believe that building an inspiring and successful brand is only possible with a high performing team. Our five spirits empower the team to dream bigger and better and help us realize our ambitious aspirations. To achieve this, On views talent as a priority and we rely on a robust hiring process, which only accepts 1% of applicants, and we invest in employee development through bespoke programs. The diversity of our team is also a key priority as we aspire to positively impact the world. Our global team, including our senior leadership team, has almost an approximately equal gender split. On's highest score in our recent engagement survey in April 2021 was for diversity and inclusion, which demonstrates our ability to create a culture of belonging, and we strive to maintain this in the future.
Our Growth Strategies 成長戦略
Our Growth Strategies
We intend to deliver continued growth in net sales and profitability by executing on the following growth strategies:
当社は、以下の成長戦略を実行することにより、売上高と収益性を継続的に成長させていきたいと考えています。
Grow Brand Awareness and our Community ブランド認知度の向上とコミュニティーの拡大
Grow Brand Awareness and our Community
We believe that powerful consumer trends will continue to expand the approximately $300 billion global sportswear industry and that our differentiated product offering and appeal to our loyal community will drive increasing market share. We believe our brand is globally recognized today, and we have significant opportunities to further grow our brand awareness and expand the size and breadth of our community. While we have meaningfully grown internationally over the past decade, our unaided brand awareness outside of Switzerland remains below established sportswear peers, providing us with a clear runway ahead.
当社は、強力な消費者動向が世界のスポーツウェア産業（約3,000億ドル）を継続的に拡大し、当社の差別化された商品と忠実なコミュニティへのアピールが市場シェアの拡大を促進すると考えています。現在、当社のブランドは世界的に認知されていますが、さらにブランドの認知度を高め、コミュニティの規模と幅を拡大する大きな機会があると信じています。過去10年間で、当社は国際的に大きく成長しましたが、スイス以外の国での当社のブランド認知度は、既存のスポーツウェアの同業他社を下回っており、今後の明確な道しるべとなります。
Authenticity gained through word of mouth, recommendations from athletes, influencers, tastemakers and a global community of runners and explorers has proven extremely valuable in organically and credibly growing the On brand. To further drive our brand’s awareness now and in the future, our internal agency team will focus on the following strategies:
・ Digital and social media: With a fast growing social presence fueled by storytelling, athletes and both physical and digital live events, we have the ability to drive brand affinity through a large audience. Our high share of voice, which measures the number of mentions of our brand on social media sites as compared to our competitors in the running space, shows that our engaged global community members are active within our channels and also promote On to their own audiences, sharing tips and offering advice to enhance the community experience.
ストーリーテリング、アスリート、物理的およびデジタルなライブイベントによって急成長しているソーシャルプレゼンスにより、当社は多くのオーディエンスを通じてブランドとの親和性を高める能力を備えています。ソーシャルメディアにおける当社ブランドの言及数を、ランニング業界の競合他社と比較した場合、当社の高いシェア・オブ・ボイスは、当社の熱心なグローバル・コミュニティ・メンバーが当社のチャンネル内で活発に活動し、また自分たちのオーディエンスにOnを宣伝して、コミュニティ体験を高めるためのヒントや助言を提供していることを示しています。
・ Athlete advocacy: There is no better validation for our products than professional athletes trusting our shoes in the most demanding settings. Olympians and World Champions in track and field embrace our products and proudly display them on the world stage. At the same time, our athletes create opportunities for core sporting storytelling that create public relations opportunities for cultural impact.
プロのアスリートたちが、最も過酷な環境で私たちのシューズを信頼してくれることほど、私たちの製品を認めてくれるものはありません。陸上競技のオリンピック選手や世界チャンピオンは、私たちの製品を採用し、世界の舞台で誇らしげにその姿を披露しています。同時に、アスリートたちは、スポーツの核となるストーリーを語ることで、文化的なインパクトを与える広報の機会を作り出しているのです。
・ Grassroots: The ‘Try On’ experience has proven a useful tool for us to show the benefit of our products and truth in our performance claims. By creating globally owned event series such as our 5k run crew ‘Squad Races’ or our yearly ‘Run Your Local Mountain’, we have invited thousands of broadly active runners to test and discover our brand. By further developing and adding new formats, we plan to reach and grow our community even further.
試着体験は、私たちの製品のメリットや性能に関する主張の真偽を示すのに有効なツールであることが証明されています。5kmランクルーによる「Squad Races」や毎年開催している「Run Your Local Mountain」など、グローバルに展開するイベントシリーズにより、何千人ものアクティブなランナーに私たちのブランドを試してもらい、発見してもらうことができました。さらに新しいフォーマットを開発し、追加することで、私たちのコミュニティをさらに発展させる計画です。
Our internal agency team collaborates across the business to ensure we are integrated directly into decision making for premium product storytelling, new innovative services, authentic community growth and shareable moments. At its heart, our marketing philosophy is simply to work with those who love our product, which we believe supports our high marketing efficiency and authenticity.
Expand our Geographic Footprint Through Controlled, Multi-channel Growth コントロールされたマルチチャネル成長による地理的なフットプリントの拡大
Expand our Geographic Footprint Through Controlled, Multi-channel Growth
We are in a growth phase in almost all of our international markets and we believe we have opportunities for continued market share gains. While we have generated net losses in recent years, we have achieved significant net sales growth historically as we have entered new markets. For example, On entered the United States in 2013 and has grown net sales to CHF 202 million in 2020 and CHF 157 million in the six-month period ended June 30, 2021. In our home market Switzerland, we have grown net sales to CHF 52 million in 2020 and CHF 27 million in the six-month period ended June 30, 2021. We entered China in 2018 and grew our net sales in the region by 199% from CHF 1.8 million in 2019 to CHF 5.5 million in 2020. We have continued to grow our net sales across these international markets for the six-month period ended June 30, 2021, with China accounting for CHF 8 million of net sales during that period.
当社は、ほぼすべての海外市場において成長段階にあり、今後も市場シェアを拡大する機会があると確信しています。近年、当社は純損失を計上していますが、過去には新規市場への参入に伴い、大幅な売上高の伸びを達成しました。例えば、Onは2013年に米国に進出し、2020年には202百万スイスフラン、2021年6月30日に終了した6カ月間では157百万スイスフランまで純売上高を伸ばしています。ホームマーケットであるスイスでは、2020年に52百万スイスフラン、2021年6月30日に終了する6カ月間に27百万スイスフランまで純売上高を伸ばしました。2018年に中国に進出し、同地域の純売上高を2019年の180万スイスフランから2020年の550万スイスフランに199%成長させました。2021年6月30日に終了した6カ月間、これらの国際市場全体で売上高を伸ばし続け、この間の売上高のうち8百万スイスフランは中国が占めています。
We believe that pioneering a true multi-channel strategy will ultimately lead to superior outcomes, lower cost of customer acquisition and higher customer retention and repeat purchases. Our wholesale and our DTC channels are mutually beneficial to each other because we always put the customer first. We ask ourselves which customers we want to attract and what is the best and most efficient acquisition channel to deliver a superior experience to these customers. We then aim to deliver that superior experience wherever the customer decides to shop, whether online or in a physical store.
We intend to continue to grow our global footprint by tapping into new customer segments without compromising our premium customer experience across our wholesale and DTC channels:
・ Wholesale channel expansion: We intend to take a measured approach to attract new customers and enter new markets through selected retail partners that are complementary to our brand. We started with the run specialty channel and then selectively expanded to additional premium retail partners to reach a broader audience, building on the initial momentum and brand halo gained by our presence in specialty stores.
当社は、当社ブランドと補完関係にある厳選された小売パートナーを通じて、新規顧客の獲得と新市場への参入を図るため、慎重なアプローチをとる予定です。まず専門店チャネルからスタートし、専門店での存在感によって得られた当初の勢いとブランドハローを基盤に、より幅広い顧客層にリーチするため、選択的に追加のプレミアム小売パートナーに拡大していきます。
・ Additional doors: We believe there is significant room to enter additional premium doors in less mature but also in many of our established markets by tapping into new customer segments. We have consciously been selective with door expansion, and emphasized being present at more premium doors.
成熟度の低い市場だけでなく、多くの既存市場においても、新たな顧客層を開拓することで、プレミアムドアに参入する余地は大きいと考えています。私たちは、意識的にドアを選択的に拡大し、よりプレミアムなドアに参入することに重点を置いています。
・ Higher sales per door: We believe that by delivering a superior On brand experience at our wholesale partners (in an online and offline environment), we still have room to increase our sales per door. Furthermore, we aim to work with our partners in a very integrated way, including planning assortments and inventory and ensuring that we have the right product assortment in the corresponding channel for the respective consumer.
1軒あたりの売上高を上げる：
私たちは、卸売パートナーで優れたオン・ブランド体験を提供することにより（オンラインとオフラインの環境で）、一軒当たりの売上を増加させる余地がまだあると考えています。さらに、品揃えや在庫の計画、それぞれの消費者に対応するチャネルでの適切な品揃えの確保など、非常に統合的な方法でパートナー企業と協働することを目指します。
・ DTC channel expansion: The second pillar to the multi-channel growth is our DTC channel, both digital and physical, which we believe enables greater consumer engagement and offers an optimal environment to showcase our brand. We believe that this customer experience will lead to a continued increased share of our DTC channel in the long term, while the short term share continues to depend on the duration and impact of the COVID-19 pandemic and the consumer behavior in the immediate post COVID-19 periods. Our DTC business represented 37.7% and 36.6% of our net sales in 2020 and the six-month period ended June 30, 2021, respectively.
マルチチャネル展開の第二の柱は、デジタルとリアルを融合したDTCチャネルです。DTCチャネルは、消費者とのエンゲージメントを高め、当社ブランドを訴求するための最適な環境を提供すると考えています。このような顧客体験が、長期的にはDTCチャネルの継続的なシェア拡大につながると考えていますが、短期的なシェアは、COVID-19の流行期間や影響、COVID-19発生直後の消費者行動によって左右されます。当社のDTC事業は、2020年および2021年6月30日に終了した6ヵ月間の売上高に占める割合は、それぞれ37.7％および36.6％でした。
・ Digital: Our scaled DTC e-commerce business represented approximately 0.9 million active customers in 2020. We believe that we have ample opportunity to not only acquire new customers, but also drive repeat purchases. Knowing our customers and being able to provide them a superior experience over time is key. Historically, we have achieved growth in our digital channel thanks to our capability to achieve superior returns on our advertising spend and a healthy balance between organic and inorganic expansion. We will continue to strive for strong growth to further enhance our digital experience.
当社のスケールアップしたDTC電子商取引事業は、2020年には約0.9百万人のアクティブなお客様を擁しています。私たちは、新規顧客の獲得だけでなく、リピート購入を促進する十分な機会があると信じています。お客様を知り、長期にわたって優れた体験を提供できることが鍵になります。当社はこれまで、広告宣伝費に対する優れたリターンを実現する能力と、オーガニックとインオーガニックのバランスのとれた拡大により、デジタルチャネルでの成長を達成してきました。今後も、デジタル体験のさらなる向上のため、力強い成長を目指していきます。
・ Physical: We plan to selectively build physical stores to showcase our brand and products, which we believe will further strengthen our local community, reach global travelers and create additional brand visibility. Our stores will be designed to create an enriching customer experience through technology and personalized customer service. We opened our first flagship retail location in New York City in 2020, and our intention is to have a very selective presence with flagship locations in key cities around the globe. We believe retail stores will be a key growth pillar in China. We currently operate four mall-based mono-brand stores in Shanghai and Chengdu and are preparing to open additional similar-format stores in China in 2021. We primarily target premium shopping locations in major cities where we are able to directly connect with customers who we believe will connect with On. We believe that our multi-channel approach will create a synergetic uplift for physical and digital DTC sales.
当社は、当社のブランドと製品を紹介する実店舗を選択的に建設する計画です。これは、地域社会をさらに強化し、世界中の旅行者を取り込み、ブランドの認知度をさらに高めると確信しています。当社の店舗は、テクノロジーとパーソナライズされた顧客サービスを通じて、豊かな顧客体験を創出するように設計されます。私たちは2020年にニューヨークに最初の旗艦小売店舗をオープンしましたが、私たちの意図は、世界中の主要都市に旗艦店舗を持つ非常に選択的な存在になることです。小売店舗は、中国における重要な成長の柱になると考えています。現在、上海と成都でモール型のモノブランド店を4店舗運営しており、2021年には中国国内で同様の形態の店舗を追加オープンする準備を進めています。私たちは主に、Onにつながると思われるお客様と直接接することができる大都市のプレミアムショッピングロケーションをターゲットにしています。私たちは、マルチチャネル・アプローチにより、実店舗とデジタルDTCの売上に相乗的な高揚感をもたらすと確信しています。
Leverage Innovation Leadership to Broaden Product Portfolio イノベーションのリーダーシップを発揮し、製品ラインアップを拡充
Leverage Innovation Leadership to Broaden Product Portfolio
We founded On with a view of making movement more effortless and comfortable. Since our founding in 2010, we have expanded our focus beyond runners and their shoes. Our innovation teams are including Swiss engineered technology in our products that can be worn while running, exploring or simply during all-day activities. We believe we can leverage our expertise in running to improve the functionality of products in adjacent lifestyles, including fitness, everyday use, outdoors and most recently tennis, and to broaden our product portfolio from footwear to apparel and accessories. While we expect to always be deeply rooted in running, consumers around the world have shown an interest in our other products, significantly increasing On's total addressable market.
私たちは、「動きをもっと楽に、もっと快適に」という考えのもと、Onを設立しました。2010年の創業以来、私たちはランナーとシューズの枠を超え、その焦点を広げてきました。私たちのイノベーションチームは、ランニングや探検、あるいは一日中活動する際に着用できる製品に、スイスの工学技術を取り入れています。私たちは、ランニングの専門知識を活用して、フィットネス、日常生活、アウトドア、そして最近ではテニスなど、隣接するライフスタイルの製品の機能性を向上させ、製品ポートフォリオをフットウェアからアパレルやアクセサリーへと広げることができると考えています。当社は、今後もランニングに深く根ざしていきますが、世界中の消費者が当社の他の製品に興味を示しており、オン社の総販売可能市場は大幅に拡大するものと思われます。
Continue to Drive Operational Excellence オペレーショナル・エクセレンスの継続的な推進
Continue to Drive Operational Excellence
As we scale our business, we plan to continue leveraging our brand and powerful business model to drive operational efficiencies and improved financial and operating performance in the following ways:
事業規模の拡大にともない、当社は引き続きブランドと強力なビジネスモデルを活用して、以下の方法でオペレーショナル・エクセレンスを推進し、財務および営業成績を向上させる計画です。
・ Insourcing of product development and Vietnam-European Union Free Trade Agreement. In 2020, On successfully completed the insourcing of product development from an external sourcing agent.
Consequently, all products purchased as of 2021 are no longer subject to a sourcing fee. As of August 2020, On benefits from the newly established free trade agreement between the EU and Vietnam. The full impact is expected to materialize in 2021, and we expect a continued positive impact on our margins going forward.
2020年、Onは外部調達エージェントからの製品開発のインソーシングに成功し、2021年時点で購入するすべての製品について、調達手数料が不要になりました。2020年8月現在、EUとベトナムの間で新たに締結された自由貿易協定の恩恵を受けています。この影響は2021年に本格化する見込みであり、今後も当社の利益率にプラスの影響を与えることが期待されます。
・ Strong channel profitability and mix. We intend to expand our DTC channel in high-value markets that can support the profitable rollout of e-commerce and select retail stores. We believe this will allow us to maintain our high levels of gross margin in our e-commerce led DTC channel.
当社は、eコマースと厳選された小売店の収益性の高い展開をサポートできる高価値市場でDTCチャネルを拡大する予定です。これにより、eコマース主導のDTCチャネルにおいて、高いレベルの売上総利益率を維持できると考えています。
・ Conversion of distributor markets. As of June 30, 2021, On worked with distribution partners in 25 countries. As we grow, we expect to transition some of those distributor markets to a direct retail distribution system, which will allow us to more efficiently and profoundly influence the customer experience.
2021年6月30日現在、Onは25カ国のディストリビューターパートナーと協働しています。当社の成長に伴い、これらのディストリビューター市場の一部は、より効率的で顧客体験に大きな影響を与えることができる直接小売販売システムへ移行することが予想されます。
Looking toward the future, we believe that these initiatives will provide a robust foundation for growth and position us to continue capturing market share.
Our Products 製品
Our Products
Our shoe, apparel and accessories products are designed primarily for specific athletic use, although a significant amount of our products are also adopted for casual or leisure purposes. We place considerable emphasis on technological innovation for performance, including our proprietary CloudTec, Helion superfoam and Speedboard technologies, and high-quality construction in the development and design of our footwear and apparel. Our products use sustainable materials such as recycled polyesters, vegan leather and PFAS-free membranes. Our general categories of footwear include:
当社のシューズ、アパレル、アクセサリー製品は、主に特定のアスレチック用途に設計されていますが、相当数の製品はカジュアルやレジャーの目的でも採用されています。フットウェアとアパレルの開発・設計においては、当社独自のCloudTec、Helion superfoam、Speedboard技術などの性能向上のための技術革新と、高品質の構造に大きな重点を置いています。当社の製品は、リサイクルポリエステル、ビーガンレザー、PFASフリー・メンブレンなど、持続可能な素材を使用しています。フットウェアの一般的なカテゴリーは以下のとおりです。
Our performance apparel and accessories cover the above-mentioned categories and are sold predominantly through the same marketing and distribution channels as our athletic footwear. Our apparel and accessories, similar to our footwear, are designed primarily for athletic use and also demonstrate our commitment to performance innovation and high-quality construction.
We generally contract with select independent third-party manufacturing contractors to produce our footwear, apparel and accessories with the contractor generally being responsible for the entire manufacturing process. We also engage independent third-party logistics providers to manage the entire supply chain so that we can remain focused on what we do best: innovating, designing and marketing premium athletic products. Our manufacturing contractors and agents operate under strict manufacturing guidelines and supervision from our sourcing teams, and all products are produced according to our demanding specifications. Early in the development and production process, quality assurance is a primary area of focus, allowing merchandise to be shipped to customers with minimal interruption.
Product Design プロダクトデザイン
Product Design
Our product design efforts are closely synced with innovation and overseen directly by the On co-founders. Product design is supported by a team of well-experienced designers based in Zürich, Switzerland, comprised of dedicated athletes and users of our products who embody our design philosophy and dedication to premium quality. The central tenet of our product design philosophy is to fuse high performance, comfort, sustainable materials and aesthetics, in order to provide our customers with everything they need, and absolutely nothing they do not.
製品デザインは、イノベーションと密接に連動し、Onの共同設立者が直接監督しています。製品デザインは、スイスのチューリッヒに拠点を置く経験豊富なデザイナーチームによって支えられています。このチームは、私たちのデザイン哲学とプレミアム品質への献身を体現する熱心なアスリートや製品のユーザーで構成されています。私たちのデザイン哲学の中心は、高性能、快適性、持続可能な素材、美しさを融合させ、お客様に必要なものはすべて提供し、不必要なものはまったく提供しないことです。
While our design team identifies trends based on market research, we believe in a specific On product vision and an innovative feedback-based design process through which we proactively seek the input of customers and our ambassadors. We believe this approach leads to more distinctive products. Our ambassadors are an integral part of our product innovation and design process as they test and evaluate our products, providing real-time feedback on performance and functionality. Our innovation team also hosts several yearly meetings in many of our markets for local and professional athletes, runners and members of the running community to discuss our products and provide us with additional feedback and ideas. We synthesize the many insights gleaned from this feedback at the On Innovation and Research Lab, our hub for advanced research and development in biomechanics, physiology, engineering and product design, to improve the performance of our products. Additionally, our design team incorporates this input to adjust fit and style, create new ideas and identify desirable fabrics.
Sourcing and Supplier Relationships 調達とサプライヤーとの関係
Sourcing and Supplier Relationships
We do not own or operate any manufacturing facilities, and all of our products are supplied by third parties. We work with a select group of approximately 17 suppliers, five of which produced approximately 85% of our products in the six-month period ended June 30, 2021. As of June 30, 2021, all of our footwear was produced by ten suppliers in Vietnam across 13 different production sites, while our apparel and accessories were sourced from seven different suppliers across various countries including China, Vietnam, Portugal and Germany. For the six-month period ended June 30, 2021, suppliers in China provided us with approximately 56% of our apparel and no single supplier was responsible for more than 27% of our footwear, apparel and accessories.
当社は製造設備を所有・運営しておらず、すべての製品は第三者から供給されています。当社は約17社の厳選されたサプライヤーグループと連携しており、そのうち5社が2021年6月30日に終了した半期において当社製品の約85％を生産しています。2021年6月30日現在、当社のすべてのフットウェアは、ベトナムの10社のサプライヤーが13の異なる生産拠点で生産し、当社のアパレルおよびアクセサリーは、中国、ベトナム、ポルトガル、ドイツなど様々な国の7社のサプライヤーから供給されています。2021年6月30日に終了した6ヶ月間において、中国のサプライヤーは当社のアパレルの約56％を供給し、フットウェア、アパレル及びアクセサリーの27％以上を単一のサプライヤーが担当することはありませんでした。
In order to mitigate supplier concentration risks, we continuously seek out alternative suppliers and manufacturers when possible and develop contingency plans for responding to disruptions. For key shoe models, like the Cloud, we use at least two suppliers to minimize supply risk and to promote competition among suppliers on the basis of cost and quality. To accommodate our growth and further mitigate risks, we intend to expand the geographic production footprint of our footwear in 2021. In the second half of 2021, we expect to utilize eight new suppliers in Vietnam, Lithuania and Turkey to produce footwear, apparel and accessories so as to further mitigate any potential supply chain risks. To date, we have not experienced material delays in obtaining any of our components or products although there were temporary disruptions as a result of COVID-19.
We purchase from our primary suppliers on a purchase order basis informed by capacity forecasts we prepare, and have non-exclusive purchase commitments based on our purchase orders for certain amounts of goods, work-in-progress and components. We measure supplier performance through various performance indicators, including on-time delivery, quality, sustainability and other criteria, on a monthly basis. Suppliers are categorized according to their skills and capabilities, and we allocate products and volume based on their business performance and capabilities. Under our supplier agreements, our suppliers must follow our established product design specifications and quality assurance programs to meet our demanding manufacturing standards. Production and quality control staff in each country from which we source products monitor manufacturing at supplier facilities in order to correct any issues prior to shipment of the final product. We require all suppliers who manufacture our products to comply with our Supplier Code of Conduct relating to working conditions as well as certain environmental, employment and sourcing practices. We have worked to develop preferred relationships with our partners, where possible, to maintain access to the resources needed to scale seasonally and ensure our partners have the requisite experience to produce our footwear, apparel and accessories.
Multi-Channel Distribution Network マルチチャンネル流通ネットワーク
Multi-Channel Distribution Network
We sell our products through our wholesale and DTC channels. In 2020, our wholesale channel accounted for 62.3% of our net sales and our DTC channel contributed 37.7% to net sales. In the six-month period ended June 30, 2021, our wholesale channel accounted for 63.4% of our net sales and our DTC channel contributed 36.6% to net sales. Retail partners are carefully selected across the wholesale channels (including select third-party online only platforms), based on their compatibility with our premium brand, positioning in the market and industry expertise. Within DTC, we limit distribution exclusively to our own e-commerce website as well as our owned and operated retail stores. Within China, we also consider our distribution through Tmall and JD.com as DTC.
当社は、卸売チャネルとDTCチャネルを通じて製品を販売しています。2020年の売上高に占める卸売チャネルの比率は62.3％、DTCチャネルの寄与は37.7％でした。2021年6月30日に終了した6ヶ月間においては、卸売チャネルが売上高の63.4％を占め、DTCチャネルが売上高の36.6％を占めています。小売パートナーは、当社のプレミアムブランドとの適合性、市場における位置付け、業界の専門知識に基づいて、卸売チャネル（一部の第三者オンライン専用プラットフォームを含む）全体で慎重に選択されます。DTCでは、販売チャネルを自社のEコマースサイトと自社運営の小売店のみに限定しています。中国国内では、TmallとJD.comを通じた販売もDTCとみなしています。
Direct-to-Consumer. We operate an e-commerce-led DTC channel, which has grown rapidly since its launch in 2012. Our online store features our full product offering and grants us the ability to build valuable intelligence through a direct conversation with our customers. We rolled out our e-commerce platform in Europe and the United States in 2012 and 2013, respectively, in conjunction with developing our own teams on the ground to manage our wholesale channel. Due to the flexible nature of e-commerce, we are now able to sell products via the e-commerce platform in over 60 countries around the world. While our e-commerce platform is rapidly gaining penetration globally, the European and the U.S. online stores are our largest markets and together, contributed 95% and 89% of our total DTC net sales in 2020 and the six-month period ended June 30, 2021, respectively. We intend to continue building out our e-commerce offering globally with a particular focus on markets where we have, or are planning to have, an established wholesale presence. E-commerce also allows us to introduce specific innovations. For example, in 2020, we announced Cyclon, our first 100% recyclable shoe which is only available through a monthly subscription model that enables our customers to rent the shoe on a month-by-month basis. The Cyclon is made entirely from castor beans and is based on a circular subscription model, through which customers never own footwear, but rather use them until they need a new pair, at which point they can return used footwear to us and receive a new pair. The entire program management of this invention will be administered through our online platform.
私たちはEコマース主導のDTCチャネルを運営しており、2012年の開始以来、急成長を遂げています。オンラインストアでは、当社の全製品を取り扱い、お客様との直接的な会話を通じて価値ある情報を構築しています。2012年には欧州で、2013年には米国でeコマース・プラットフォームを展開し、同時に卸売チャネルを管理するための現地チームを育成しました。eコマースの柔軟な特性により、現在、世界60カ国以上でeコマース・プラットフォームを通じた商品の販売が可能となっています。当社のEコマース・プラットフォームは世界的に急速に浸透していますが、欧州と米国のオンラインストアは当社の最大の市場であり、合わせて2020年と2021年6月30日に終了した6カ月間のDTC売上高の95％、89％に寄与しています。当社は、卸売業を確立している、または確立する予定の市場に特に重点を置きながら、グローバルにEコマースの提供を拡大していく予定です。電子商取引は、特定のイノベーションを導入することも可能です。例えば、2020年には、当社初の100％リサイクル可能なシューズ「Cyclon」を発表しました。このシューズは、お客様が1カ月単位でレンタルできる月額制モデルを通じてのみ入手可能です。Cyclonはすべてひまし油から作られており、循環型購読モデルに基づいています。このモデルを通じて、お客様は靴を所有することはなく、新しい靴が必要になるまで使用し、その時点で使用済みの靴を当社に返却して、新しい靴を受け取ることができます。この発明のプログラム管理は、すべて当社のオンラインプラットフォームで行われます。
Our e-commerce rollout is complemented by our own retail stores in premium high-traffic locations. We opened our first retail flagship store in New York City in 2020. We opened our first smaller format, mall-based store in China in December 2019 and have since opened three additional, smaller format stores in China. Going forward, we plan to open a limited number of additional retail flagship stores in other major metropolitan centers as well as athletic destinations where we believe they can operate profitably and create further brand momentum. This unfiltered window into our brand will allow us to develop a closer relationship with our customers through exclusive experiences, feature our full product offering, retain pricing control and drive net sales growth across both channels.
Wholesale. Building on the expertise of third parties, the wholesale channel allows us to enter and develop new and existing markets, build and maintain a leading position within our geographies and support digital marketing investments to strengthen the DTC channel. We utilize a controlled wholesale channel expansion approach, which entails entering a particular market through select specialty running retailers and then expanding to other partners with more generalist capabilities that reach a wider community while still maintaining our brand message, ethos and premium quality. As part of this approach, we develop strategic and long-term relationships directly with retailers and distributors and work with a select set of partners who respect our heritage, share our values and strengthen our market presence. As of June 30, 2021, our products are available at approximately 8,100 retail stores across more than 50 countries. Our wholesale distribution includes a mix of specialty, sporting goods, outdoor, luxury and street fashion retailers, with varying shares between their online and offline sales. We leverage our mutually beneficial relationships to receive prime placement within their stores, showcase a relevant product offering and establish On shops-in-shops to deliver the best possible customer experience. Careful planning with our wholesale network allows us to manage inventory effectively and achieve high levels of full-price sell-through.
第三者の専門知識を活用することで、当社は新規および既存市場への参入と開発、地域内での主導的地位の構築と維持、DTCチャネルを強化するためのデジタルマーケティング投資のサポートを可能にしています。これは、厳選されたランニング専門小売店を通じて特定の市場に参入し、その後、当社のブランドメッセージ、理念、高品質を維持しながら、より広いコミュニティにリーチする、より一般的な能力を持つ他のパートナーに拡大するというものです。このアプローチの一環として、当社は小売店や流通業者と直接戦略的かつ長期的な関係を築き、当社の伝統を尊重し、当社の価値を共有し、市場での存在感を高める厳選されたパートナーと協働しています。2021年6月30日現在、当社の製品は50カ国以上の約8,100の小売店で販売されています。当社の卸売販売には、専門店、スポーツ用品店、アウトドア店、高級店、ストリートファッション店などが含まれ、そのオンラインとオフラインの売上比率はさまざまです。私たちは、互恵的な関係を活かして、小売店の店内に最適な場所を確保し、適切な商品を紹介し、ショップ・イン・ショップを設立して最高の顧客体験を提供します。卸売ネットワークとの綿密な計画により、在庫を効果的に管理し、高いレベルのフルプライスセールススルーを達成することができます。
Our distribution uses three models to serve different markets:
・ Direct Markets Model: Our team is present in the market, managing all local operations and directly managing our wholesale accounts. We are also present in such geographies through our DTC e-commerce platform. Our current direct markets are: Switzerland, Germany, Austria, France, United Kingdom, Belgium, Luxembourg, Netherlands, Norway, United States, Canada, Japan, China, Australia and Brazil.
私たちのチームは市場に常駐し、現地のオペレーションをすべて管理し、卸売アカウントを直接管理しています。また、DTCのeコマース・プラットフォームを通じて、そのような地域にも進出しています。現在のダイレクトマーケットは以下の通りです。スイス、ドイツ、オーストリア、フランス、英国、ベルギー、ルクセンブルグ、オランダ、ノルウェー、米国、カナダ、日本、中国、オーストラリア、ブラジル。
・ Distributor Markets Model: We outsource local operations to a distributor who manages all operations and third-party accounts. Under this model, we directly manage any DTC e-commerce through our headquarters in Zurich or our regional offices. Current key distributor markets include Italy, Spain, Sweden, Mexico, United Arab Emirates, Israel and Korea.
ディストリビューターは、すべてのオペレーションとサードパーティーアカウントを管理します。このモデルでは、チューリッヒ本社または地域事務所を通じて、DTCのeコマースを直接管理します。現在の主なディストリビューター市場には、イタリア、スペイン、スウェーデン、メキシコ、アラブ首長国連邦、イスラエル、韓国が含まれます。
・ E-commerce Only Model: We do not have a physical presence or outsource local operations to a distributor, but we still serve these markets through DTC e-commerce. This model of distribution is typically reserved for markets where we have not yet built a local presence.
私たちは実店舗を持たず、現地でのオペレーションも代理店に委託していませんが、DTCの電子商取引を通じてこれらの市場にサービスを提供しています。この販売モデルは、通常、当社がまだ現地でプレゼンスを確立していない市場にのみ適用されます。
Over the past three years, we started the process of enhancing our wholesale network by converting key markets including Norway, Brazil and Australia to our direct market model.
Our three in-house distribution models allow us to deepen the relationships with our retailers by strategizing on product assortment, shop-in-shop presentation and rollout, create opportunities to increase our two season penetration and offer new products.
Community-Based Marketing 地域密着型マーケティング
Community-Based Marketing
We differentiate our business through an innovative, community-based approach to building brand awareness and customer loyalty. We pursue a multi-faceted strategy which leverages our local ambassadors and a variety of grassroots initiatives. Our ambassadors, who are professional athletes and runners worldwide, share our core values and introduce the brand to their communities leading to interest and word-of-mouth marketing.
私たちは、地域社会に根ざした革新的なアプローチで、ブランドの認知度と顧客ロイヤリティを高めることで、ビジネスの差別化を図っています。私たちは、地域のアンバサダーやさまざまな草の根活動を活用し、多面的な戦略を追求しています。アンバサダーは世界中のプロスポーツ選手やランナーで、私たちのコアバリューを共有し、地域社会にブランドを紹介することで、関心と口コミのマーケティングにつながっています。
We believe our community-based marketing strategy allows us to successfully increase brand awareness and broaden our appeal while reinforcing our product superiority and functionality. We invest in storytelling, social and live online events, and have more than 1.2 million and 1.7 million customer profiles as of December 31, 2020 and June 30, 2021, respectively.
Our Market 当社の市場
Our Market
Our core opportunity is the approximately $300 billion global sportswear market—an intersection of the $119 billion sports footwear market and the $174 billion sports apparel market. According to Euromonitor International, the global sportswear market is projected to grow at a 8.9% CAGR over the next five years, outpacing the global non-sports footwear and apparel market five-year CAGR of 6.8%.
スポーツ・フットウェア市場（1,190億ドル）とスポーツ・アパレル市場（1,740億ドル）が交差する、約3,000億ドルの世界スポーツウェア市場が当社の中核となるビジネスチャンスです。Euromonitor Internationalによると、世界のスポーツウェア市場は今後5年間、年平均成長率8.9%で、スポーツ以外のフットウェアおよびアパレル市場の5年間平均成長率6.8%を上回ると予測されています。
・ Footwear: According to Euromonitor International, the global sports footwear market generated $119 billion of retail sales in 2020 and is expected to grow at 9.9% per year through 2025, compared to the 5.3% yearly growth for non-sports footwear.
ユーロモニター・インターナショナルによると、世界のスポーツシューズ市場は2020年に1190億ドルの小売売上高を記録し、2025年まで年率9.9％で成長すると予測されています（スポーツシューズ以外のシューズは年率5.3％の成長率）。
・ Apparel: According to Euromonitor International, the global sports apparel market generated $174 billion of retail sales in 2020 and is expected to grow at 8.2% per year through 2025, compared to the 7.0% yearly growth for non-sports apparel.
ユーロモニター・インターナショナルによると、世界のスポーツアパレル市場の2020年の小売売上高は1740億ドルで、2025年まで年率8.2％の成長が見込まれるのに対し、非スポーツアパレルは年率7.0％の成長であるという。
We see significant potential to further expand our business globally. For example, Asia-Pacific represents just 5% of our net sales in 2020 and 6% of our net sales in the six-month period ended June 30, 2021, but accounts for 28.7% of the global sportswear market and is projected to be the fastest-growing region over the next five years. We have launched and achieved significant growth in more than 60 countries since our launch and we believe our continued expansion in key geographies will accelerate our growth and brand awareness in the sportswear market.
We believe the following factors will drive continued growth in the sports apparel and footwear industry:
・ Casualization and comfort: Consumers are pivoting towards more comfortable and casual attire. Customers responded well to the emergence of athleisure fashion, as evidenced by the industry’s rapid growth. For example, according to Euromonitor International, sales of sports-inspired footwear and apparel grew at a CAGR of 3.3% and 1.8%, respectively, for the period from 2015 through 2020, and are anticipated to grow at a CAGR of 10.3% and 8.8%, respectively, for the period from 2020 through 2025. This allows consumers to interchangeably use apparel and footwear for athletic activities and other occasions including everyday casual activities, social gatherings and the workplace.
消費者は、より快適でカジュアルな服装へと軸足を移している。アスレジャーファッションの出現は、この業界の急成長が物語るように、顧客から高い評価を得ている。例えば、Euromonitor Internationalによると、スポーツにインスパイアされたフットウェアとアパレルの売上は、2015年から2020年までの期間にそれぞれ3.3%と1.8%のCAGRで成長し、2020年から2025年までの期間にそれぞれ10.3%と8.8%のCAGRで成長すると予想されています。これにより、消費者は、スポーツ活動や、日常のカジュアルな活動、社交の場、職場などの場面で、アパレルやフットウェアを交換しながら使用することができるようになります。
・ Innovation and technology: We believe consumers seek innovative and technologically advanced apparel and footwear to enable them to achieve their peak performance. We believe this desire will continue driving consumers to purchase new sports footwear and apparel as new innovations and technologies are developed.
消費者は、最高のパフォーマンスを発揮するために、革新的で技術的に高度なアパレルやフットウェアを求めていると、私たちは考えています。この欲求は、新しい革新的な技術が開発されるにつれて、消費者が新しいスポーツフットウェアやアパレルを購入する原動力になると考えています。
・ Healthy lifestyle trends: The desire to stay or become fit and to be outside is a trend that we believe will continue driving consumers to purchase sports apparel and footwear. We believe that sports apparel and footwear are well positioned to benefit from the pandemic lockdowns due to consumers’ desire to engage in more outdoor activities, such as hiking, camping, and running. For example, according to a study conducted by a third party industry association and a research consulting group, 28% of those surveyed reported starting or resuming running outside since the onset of the COVID-19 pandemic. In addition, approximately 60% of survey respondents indicated that their top reasons for taking up outdoor activities since the onset of the COVID-19 pandemic included getting exercise, staying healthy and fit and being outside.
健康であり続けたい、あるいは健康になりたい、外で過ごしたいという願望は、今後も消費者のスポーツアパ レルやフットウェアの購入を促進するトレンドであると当社は考えています。ハイキング、キャンプ、ランニングなど、より多くのアウトドア活動をしたいという消費者の願望から、スポーツ・アパレルとフットウェアはパンデミック・ロック・ダウンから利益を得るのに適した位置にいると考えています。例えば、第三者である業界団体と調査コンサルティンググループが行った調査によると、調査対象者の28％がCOVID-19の流行開始以降、外でランニングを開始または再開したと回答しています。また、調査対象者の約60％が、COVID-19の流行開始以降、屋外での活動を始めた理由として、「運動不足解消」「健康維持・増進」「外に出ること」を挙げています。
We believe the unique performance, comfort and design of our products aligns On with the shifting consumer preferences towards casualization and comfort, innovation and technology, and prevailing healthy lifestyle trends. Furthermore, we believe that our craftsmanship and technology positions our products as premium coveted comfort items, enabling us to capitalize on the growth trends in the sports apparel and footwear industry.
Competition 競争
Competition
Competition in the shoe, apparel and accessories industry is principally on the basis of brand image and recognition, product quality, innovation, design, sustainability, distribution and price. We believe that we successfully compete on the basis of our premium brand image, our focus on running and our technical product innovation. We are also differentiated by our commitment to community-based grassroots marketing which allows us to increase brand awareness and strengthen customer loyalty.
靴、アパレルおよびアクセサリー業界における競争は、主としてブランドイメージと認知度、製品の品質、革新性、デザイン、持続可能性、流通および価格に基づいて行われています。当社は、プレミアムなブランドイメージ、ランニングへの注力、製品の技術的な革新により、競争力を高めることができると考えています。また、地域社会に根ざした草の根マーケティングへの取り組みにより、ブランド認知度を高め、顧客ロイヤリティを強化していることも、他社との差別化の要因となっています。
The market for shoe, apparel and accessories is highly competitive and fragmented. It includes increasing competition from established companies who are expanding their production and marketing of performance products, as well as from frequent new entrants to the market. We are in direct competition with wholesalers and direct sellers of athletic footwear and apparel, such as Nike, Inc., adidas AG, which includes the adidas and Reebok brands, and Under Armour, Inc., Brooks Sports Inc., Hoka One One (Deckers Outdoor Corporation), Asics, New Balance, Lululemon, Patagonia, Arcteryx, Anta Group and Li Ning. We believe that having been able to break into the competitive set of top 5 running brands in the biggest running markets the United States, Germany and Japan, provides a platform for future growth and positions us well against certain of our competitors.
Intellectual Property 知的財産権
Intellectual Property
Our long-term commercial success is connected to our ability to obtain and maintain intellectual property protection for our brand, products and technology, defend and enforce our intellectual property rights, preserve the confidentiality of our trade secrets, operate our business without infringing, misappropriating or otherwise violating the intellectual property or proprietary rights of third parties and prevent third parties from infringing, misappropriating or otherwise violating our intellectual property rights. We seek to protect our investments made into the development of our products, technology, brand and design by relying on a combination of trademarks, patents, designs, copyrights, trade secrets, know-how, non-disclosure agreements, confidentiality agreements, invention assignment agreements, development agreements and other contractual rights.
当社の長期的な商業的成功は、当社のブランド、製品および技術に関する知的財産権の保護を獲得・維持し、当社の知的財産権を擁護・行使し、当社の営業秘密を保持し、第三者の知的財産権または所有権を侵害することなく事業を運営し、第三者が当社の知的財産権を侵害・横領またはその他の方法で違反するのを防止する能力に関連しています。私たちは、商標、特許、意匠、著作権、営業秘密、ノウハウ、秘密保持契約、発明譲渡契約、開発契約およびその他の契約上の権利を組み合わせることにより、製品、技術、ブランドおよびデザインの開発に対する投資の保護を図ります。
We use registered trademarks on nearly all of our products and believe having distinctive marks that are readily identifiable is an important factor in creating a market for our goods, in identifying our brands, and in distinguishing our goods from the goods of others. As of June 30, 2021, we owned approximately 316 trademark registrations in 36 different jurisdictions including Austria, Canada, China, France, Germany, Hong Kong, Italy, Japan, Mexico, Russia, South Korea, Spain, Switzerland and the United States. These trademarks include, among others, On, the On logo, On Running, the Cloud logo, Run On Clouds, Cloudtec, Speedboard and Helion and many product names of our shoe models (such as Cloud, Cloudflow, Cloudswift, Cloud X, Cloudstratus, Cloudrock, Cloud Terry, Cloudnova, etc.). The current registrations of these trademarks are effective for varying periods of time and may be renewed periodically, provided that we, as the registered owner, comply with all applicable renewal requirements including, where necessary, the continued use of the trademarks in connection with similar goods and services. We pursue additional trademark registrations to the extent we believe they would be beneficial and cost-effective. In addition to trademark protection, we own domain names for certain of our trademarks, including “www.on-running.com.”
As of June 30, 2021, we owned four issued U.S. patents, four pending U.S. patent applications, 42 issued foreign patents, 56 pending foreign patent applications and five pending PCT applications relating to components, technologies, materials, features, functionality, and industrial and aesthetic designs used in and for the manufacture of various of our products. Assuming payment of all appropriate maintenance, renewal, annuity or other governmental fees, these issued patents and utility models, and any patents granted from such applications, if issued, are expected to expire between November 30, 2022 and January 29, 2042, without taking potential patent term extensions or adjustments into account. We continually review our development efforts to assess the existence and patentability of new intellectual property.
The term of individual patents depends upon the legal term for patents in the countries in which they are granted. In most countries, including the United States, the patent term is 20 years from the earliest claimed filing date of a non-provisional patent application in the applicable country. In the United States, a patent’s term may, in certain cases, be lengthened by patent term adjustment, which compensates a patentee for administrative delays by the United States Patent and Trademark Office in examining and granting a patent. It may also be shortened if a patent is terminally disclaimed over a commonly owned patent or a patent naming a common inventor and having an earlier expiration date. We cannot be sure that our pending patent applications that we have filed or may file in the future will result in issued patents in any jurisdiction, and we can give no assurance that any patents that have been issued or might be issued in the future will protect our current or future products, will provide us with any competitive advantage, and will not be challenged, invalidated, or circumvented.
Moreover, we rely, in part, on trade secrets to protect aspects of our business that are not amenable to, or that we do not consider appropriate for, patent protection. However, trade secrets can be difficult to protect. While we take steps to protect and preserve our trade secrets and our know-how, unpatented technology and other proprietary information, including by entering into intellectual property assignment agreements, non-compete agreements and confidentiality agreements and by maintaining physical security of our premises and physical and electronic security of our information technology systems, such measures can be breached, and we may not have adequate remedies for any such breach. In addition, our trade secrets may otherwise become known or be independently discovered by competitors. As a result, we may not be able to meaningfully protect our trade secrets. For more information regarding the risks related to our intellectual property, please see “Risk Factors—Risks Related to Our Intellectual Property and Information Technology.”
Employees and Human Capital Resources 社員と人財
Employees and Human Capital Resources
Our strongest asset is our team. We have been able to attract, retain and motivate individuals with a diverse background and skills that together build high performing teams. Our exceptional talent is carefully assessed through a robust interview process and developed throughout their journey at On. We endeavor to incentivize individuals based on their impact and contribution to On through equity compensation and other incentives.
私たちの最強の資産は、チームです。私たちは、多様な経歴とスキルを持つ人材を集め、維持し、モチベーションを高めることで、共に高いパフォーマンスを発揮できるチームを作り上げてきました。優秀な人材は、しっかりとした面接プロセスを通じて慎重に評価され、オン・セミコンダクターでのキャリアを通じて育成されます。私たちは、株式報酬やその他のインセンティブを通じて、オンへの影響と貢献に基づいたインセンティブを個人に与えるよう努力しています。
Our core spirits call on each of our team members to care for each other and our customers. We believe that creative solutions are best achieved by diverse teams working together. Diversity of thoughts, backgrounds, perceptions and ideas helps us create the technologies and innovations and helps our business thrive.
We partner with suppliers who share our commitment to ethical business conduct, fair labor practices, proven environmental, health, and safety practices and environmental sustainability. We also specifically condemn human trafficking and abuse of child labor. We recognize the importance of eliminating forced labor within the supply chain and its increasing significance. Our supplier code of conduct prohibits the use of forced labor, and we will not knowingly conduct business with vendors or factories that use forced labor. We expect all of our vendors and suppliers to conduct sufficient due diligence in their supply chains to ensure compliance with our vendor code of conduct, and we continue to expand our due diligence activities and vendor engagement and training on this important issue. Moreover, we seek to work with third-party suppliers and factories that are committed to providing fair and safe working conditions, and that demonstrate strong business ethics and transparency in their manufacturing practices.
As of June 30, 2021, we had a total of 883 full-time employees. Of our employees, 136 were engaged in research and development. 537 full-time employees were based in Europe, 187 full-time employees were based in North America and 151 full-time employees were based in Asia. We are subject to, and comply with, local labor law requirements in all countries in which we operate. We consider our employee relations to be good and we have not experienced any work stoppages.
Leased Properties 賃貸物件
Leased Properties
We maintain the following leased facilities for our corporate headquarters and to conduct our principal manufacturing and retail activities, which we believe are in good condition and working order:
当社は、本社および主要な製造・販売活動を行うために以下の賃貸施設を保有しており、これらの施設は良好な状態で稼動していると考えています。
Legal Proceedings and Regulatory Matters 法的手続及び規制に関する事項
Legal Proceedings and Regulatory Matters
From time to time, we may be subject to legal or regulatory proceedings and claims in the ordinary course of business, including proceedings to protect our intellectual property rights. As part of our monitoring program for our intellectual property rights, from time to time, we file lawsuits for acts of trademark counterfeiting, trademark infringement, trademark dilution, patent infringement or breach of other state or foreign laws. These actions may result in seizure of counterfeit merchandise and negotiated settlements agreements with defendants. Defendants sometime raise the invalidity or unenforceability of our proprietary rights as affirmative defenses or counterclaims. Although we cannot predict with certainty the results of pending legal and regulatory proceedings and claims, we believe that the final outcome of pending litigation and claims will likely not have a material adverse effect on our business and results of operations. Regardless of the outcome, however, any litigation can result in substantial costs and diversion of management resources and attention.
当社は、通常の事業活動において、知的財産権の保護を含む法的手続きや規制の対象となることがあります。当社の知的財産権に対する監視プログラムの一環として、当社は商標権の侵害、商標権の希釈化、特許権の侵害、 その他の州法または外国法の違反に対して訴訟を提起しています。これらの訴訟の結果、模倣品が押収され、被告との間で交渉による和解が成立することもあります。被告は、当社の所有権の無効性又は執行不能性を積極的な抗弁又は反訴として提起することがあります。当社は、係争中の法的手続及び請求の結果を確実に予測することはできませんが、係争中の訴訟及び請求の最終的な結果が当社の事業及び経営成績に重大な悪影響を与えることはないと考えています。しかし、その結果にかかわらず、いかなる訴訟も多額の費用と経営資源および注意の転用をもたらす可能性があります。
出典：https://www.sec.gov/Archives/edgar/data/0001858985/000119312521253415/d175570df1.htm
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