Kylian Mbappé leaves Nike for Swiss brand On, signaling a new era as On launches its soccer division, raising stakes for both companies in the market.
In a significant shakeup in the sportswear sector, Swiss company On is making its much-anticipated entry into the soccer arena by signing French star Kylian Mbappé. This move not only marks a pivotal moment for both the athlete and the brand but also highlights the ongoing transformations in the global sports market.
On Friday, the brand revealed its new football division alongside Mbappé’s signing, indicating a strategic shift aimed at capturing a share of the lucrative soccer market. The initiative comes with the appointment of French football legend Thierry Henry as On's director of football, a role he has reportedly been involved in since late 2025. Additionally, FC Barcelona’s midfielder, Sydney Schertenleib, who has already served as an On ambassador, will play an integral part in steering the company’s soccer ambitions.
“At On, we believe soccer should emphasize the joy of play, enhanced by innovation and community connections,” the company stated in its press release, setting the tone for its new vision in a highly competitive landscape.
The End of an Era with Nike
Mbappé’s transition to On signals the end of a partnership that began when he was just nine years old, during which he became one of the most recognizable faces in soccer, especially following France’s triumphant World Cup run in 2018. Nike reflected on their lengthy collaboration, expressing pride in the milestones they achieved together and wishing him success as he embarks on this new chapter.
This development is particularly concerning for Nike, as the brand grapples with a rough patch—its shares plummeting over 50% within the past year. This downward trend culminates in Nike being removed from the S&P 100 list, a significant indicator of its recent struggles in the marketplace.
On's Bold Move into Soccer
For On, established in 2010 primarily in the running and lifestyle segment, this foray into soccer represents a bold expansion. The decision is tactical, aiming to leverage Mbappé’s star power to gain attention in a field dominated by giants like Nike and Adidas. While the company has garnered respect in other sports categories through its engineering-focused products, soccer presents a myriad of challenges.
Investment analysts from Evercore ISI have called this step into soccer a "positive near-term catalyst" for On, noting early upticks in share value post-announcement. They assert that while soccer has its challenges and predominantly belongs to the established brands, the segment remains ripe for disruption given its highly competitive nature.
Market Challenges and Competitive Dynamics
Yet, it's crucial to acknowledge the hurdles On will face. Analysts point out that soccer-related goods such as cleats and team apparel typically yield lower profit margins, a factor that could impact On’s profitability as it diversifies its offerings. The potential necessity to recalibrate margin expectations raises questions about revenue sustainability.
While some, like Jefferies analyst Randal Konik, view this move skeptically, drawing parallels to other brands that have struggled to establish credibility through star partnerships alone, others remain optimistic. Konik mentions that entering the football market is costly and performance credibility takes time to build, suggesting that the pressure is on for On to deliver on this investment.
The Road Ahead for On and Mbappé
On's soccer division launch coincides with a critical juncture for the sportswear company, particularly as the running segment shows signs of maturity and market saturation. The expansion into soccer could be seen as a strategic maneuver to cultivate new revenue streams amidst shifting consumer dynamics.
Looking forward, the emphasis will be on execution—effectively leveraging Mbappé’s influence while also developing a credible product range to compete with entrenched brands. How On navigates this new chapter, balancing innovation with profitability, will determine not just its success in soccer, but its long-term positioning in the highly competitive sportswear industry.
As passions for soccer continue to rise globally, On's entry underlines a broader narrative of evolving footwear partnerships. The brand must capitalize on the fervor surrounding the sport while ensuring its authentic connection with athletes and fans alike. With Mbappé now in its corner, the stage is set for a captivating journey ahead.
