Let’s start with a quiz: How many running or athletic pairs of shoes do you own? How long do they last? How much do you spend?
If your closet is like mine, you probably have at least six pairs, of which five pairs are very used and dirty. It would be nice if we could wear running shoes until they are worn or dirty, and then just trade it them in for a new pair. Well, as luck would have it, Swiss footwear company On Running is now offering a new running shoe called “Cyclon.” But Cyclon is not for sale – only for rent. Yes, rent. Use, wear, and return them for a new pair.
Cyclon is available for a monthly fee of $29.95. It is a subscription service for not only a performance running shoe, but a fully recyclable plant-based shoe. Castor beans are used as the base, and the shoe upper is sewn from a single piece of fabric to help reduce waste. On Running focused on the challenges of not only creating a fully recyclable shoe, but also making sure that the shoes were returned to be recycled. Thus, the subscription model of ‘rent and return’ gives On control of the recycling process.
It seems to have resonated with the market – in the first 48 hours after launching Cyclon On signed 2,000 subscribers! On needs 5,000 people to sign up per region in order to ship the shoes at reduced carbon footprint of the transportation.
Let’s go for a run!
Group Activities and Discussion Questions:
- Discuss a subscription business model. Poll students: What subscription services do they use? Other services they can name? (Ex: meal kits, shave clubs, entertainment, etc.).
- Poll students: On average, how much do they pay for a running shoe and how long does it last? How many pairs of athletic shoes do they have currently?
- Show On Running website: https://www.on-running.com/en-us/cyclon
- Show video of founders discussing Cyclon: https://youtu.be/VtosSdRZcsA
- What is the target market for Cyclon?
- What elements should be in the marketing program for this shoe?
Sources: Outside Online; other news sources