On Running's CPO on Product, Brand, and Market Disruption
On Running's CPO Gerald Marolf discusses building emotional products, strategic brand expansion, and navigating consumer loyalty in athletic wear.
Key Insights
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Insight
Great products should trigger a 'slight discomfort of challenging yourself,' fostering an emotional connection beyond pure utility.
Impact
Companies can leverage emotional design to create deeper brand loyalty and justify premium pricing, distinguishing their offerings in crowded markets.
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Insight
Physical product development carries higher risk than digital due to limited post-launch iteration, necessitating clear product intent from the outset.
Impact
Businesses must invest heavily in upfront planning, rigorous testing, and precise communication of product purpose to mitigate financial and reputational risks associated with physical goods.
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Insight
Avoiding 'hybrid' products that compromise between multiple functions (e.g., sport and lifestyle) is crucial for maintaining clear brand identity and quality perception.
Impact
Focusing on distinct product intent, even for niche markets, prevents brand dilution and ensures consumers perceive uncompromising quality, enhancing long-term market position.
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Insight
Strategic partnerships with iconic figures (like Roger Federer) can credibly expand a brand beyond its core, establishing a premium identity in new market segments.
Impact
Such collaborations can unlock significant market diversification, elevate brand perception, and anchor a company's identity in broader lifestyle or luxury categories, attracting new investment and customer bases.
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Insight
While listening to customers is vital, knowing when to lead with innovative, even controversial, products can drive cultural relevance and market growth.
Impact
Companies must balance consumer feedback with visionary product development, using calculated market releases and effective messaging to introduce groundbreaking products and capture emerging trends.
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Insight
The market is evolving beyond the need for a single 'hero product'; a holistic brand personality and diverse, quality product lines are increasingly critical.
Impact
Businesses should focus on cultivating a comprehensive brand experience and product ecosystem rather than relying on one flagship item, enabling them to capture diverse consumer preferences and revenue streams.
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Insight
For apparel, the intrinsic quality and feel of materials often serve as a 'feature,' driving perceived premiumization and distinction more than explicit functionalities.
Impact
Investing in unique and high-quality materials can be a key competitive advantage, justifying premium pricing and enhancing brand value in fashion and athletic wear sectors by offering a superior tactile experience.
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Insight
Imitation negatively impacts innovation and reduces brand aspiration, especially for luxury goods, by diluting the unique promise and gravitas of original products.
Impact
Brands focused on innovation or luxury must continuously differentiate their offerings and protect intellectual property to maintain their market position and premium appeal against copycats, safeguarding long-term brand equity.
Key Quotes
"Every great product, you should probably trigger somewhat of that slight discomfort of challenging yourself of is it the right thing for me? And not all footwear does that. But when it does that, you're already one step ahead in actually falling in love with the product itself."
"If I look at what you're doing, you don't go in and fish for a reason to do something. And even if it's a 200 bucks pair of shoes, I don't think we should do that neither. Even if you just wear it for lifestyle, you probably want the best running shoe out there. Or then you want a true fashion statement. But you're not gonna wear your running shoes and then wear them again for a night out and back and forth."
"I think they anticipated really well, and they went to a playbook that was unexpected. I mean, when the 550 came, no one thought that anyone needs another basketball shoe and it was just Air Force Ones. They were able to create that with a bit of an outsider mentality, and people wore it for a while."
Summary
Crafting Emotion: On Running's Product Philosophy
In an evolving consumer landscape, building a product that resonates deeply with users is paramount. Gerald Marolf, CPO at On Running, sheds light on the intricacies of product development, brand expansion, and navigating competitive markets. His insights emphasize a shift from mere functionality to engineering emotional connections, highlighting the unique challenges and opportunities in the physical product space.
The Emotional Core of Product Design
Marolf argues that truly great products trigger a "slight discomfort of challenging yourself," leading to genuine affection. This goes beyond basic utility, aiming to create a "relationship value" with the consumer. Unlike digital products where rapid iteration is possible, physical products demand precision and clear intent from the outset. Once a physical item is in a consumer's hands, the ability to modify it is virtually nonexistent, amplifying the risk of design choices. This necessitates rigorous pre-launch planning and a deep understanding of consumer psychology.
Navigating Market Niche vs. Mass Appeal
On Running faces the challenge of catering to both "power users" – dedicated runners – and lifestyle consumers who wear the shoes for comfort and style, not necessarily for athletic performance. Marolf embraces this "bipolarity," stressing the importance of uncompromising product intent. He cautions against creating "hybrid" products that attempt to serve multiple functions (e.g., sport and lifestyle) equally, as this often leads to compromises in quality and a confused brand message. Instead, a strong base in performance allows for aspirational appeal, even for non-athletic use cases.
Strategic Expansion and Brand DNA
The discussion delves into strategic brand expansion, notably On Running's partnership with Roger Federer. This collaboration, while seemingly niche (tennis), is viewed as a powerful driver for the brand's overall identity, anchoring it as a "premium sportswear brand." Such partnerships allow for credible diversification beyond the core running market, leveraging a respected figure's influence to open new territories. However, Marolf acknowledges the complexity of maintaining cultural relevance and diversifying beyond an individual's career.
The Future of Sportswear and Brand Loyalty
Marolf challenges the traditional notion of a single "hero product," suggesting that today's diversified market values a holistic brand personality and a broader product ecosystem. He highlights the critical role of materials and intrinsic quality in apparel, often surpassing explicit functional features in driving consumer perception of premiumization. Furthermore, he touches on the double-edged sword of imitation: while flattering aesthetically, it can dilute innovation and erode a luxury brand's aspirational value. In a fragmented market, cultivating a distinct brand personality is crucial for fostering loyalty, even as consumers become more "promiscuous" with their brand selections. The future of sportswear, he suggests, lies in capturing everyday consumer habits, envisioning sportswear as a pervasive "uniform" that extends far beyond just athletic pursuits.
Conclusion: Building an enduring brand in the modern consumer landscape requires more than just good products; it demands emotional intelligence, strategic foresight, and an unwavering commitment to brand identity, even as markets shift and diversify.
Action Items
Prioritize emotional product engineering to build deeper 'relationship value' with consumers, focusing on sensory and experiential elements.
Impact: This strategy can cultivate stronger brand loyalty, enable higher pricing power, and generate organic word-of-mouth marketing, leading to sustainable growth and market differentiation.
Implement rigorous pre-launch validation for physical products, clearly defining purpose and audience to mitigate iteration risks once shipped.
Impact: Enhanced upfront planning reduces costly post-launch adjustments, streamlines inventory, and improves initial market acceptance, optimizing resource allocation and profitability.
Leverage influential figures and 'friends of friends' networks to authentically expand into new product territories and subcultures.
Impact: This approach enables targeted market penetration and brand diversification, fostering cultural relevance and minimizing the risks associated with broad, untargeted market entries.
Balance the pursuit of product perfection with strategic market release velocity to capitalize on trends and gather real-world feedback.
Impact: Faster market entry can capture fleeting trends, provide earlier performance data, and maintain competitive momentum, especially in rapidly evolving consumer sectors.
Expand the 'madness' of innovation from core products to accessories and holistic product lines, ensuring consistent brand quality and storytelling.
Impact: This action can unlock new revenue streams, enhance the overall brand experience, and strengthen market presence across multiple consumer touchpoints beyond initial flagship offerings.