Six Apparel and Footwear Companies That Could Overtake Nike

Nike (NYSE:NKE) remains the king of sneakers and marketing. In a world where it seems Nike has mastered the sleek shoe design and sponsorships and untouchable brand value, is it possible other companies could ever catch up? Some experts think so.

We looked into the fastest-growing shoe companies that are racing to grab some of the market share now dominated by Nike. But which ones are they and why are they doing so well? Here are six of the companies we think can overtake the shoe king in some markets.

Background on the Sneaker Industry

Even though Nike dominates the industry, it isn’t without its issues and there is room for improvement when it comes to sustainability, responsible manufacturing, and quality. In the United States especially, Nike has carved out a nearly unassailable position.

So, why would other companies be catching up? The answer is wealth inequality.

As wealth inequality grows, companies have to adapt in order to maintain a large customer base. Stores and brands that used to focus on the middle class have to decide whether to focus on the poorer working class which can afford less but is a much larger market, or the rich people who can afford more but is a much smaller market.

Nike is notorious for selling its famous sneakers for obscene prices, fueling the sneaker culture that has preyed upon the poor and working class and exploited young collectors. As Nike continues to focus on richer customers and push more expensive products, companies that offer simpler, more sustainable, and cheaper shoes are stepping up to serve the customers left behind.

#1 ASICS Corporation

Asics is a Japan-based shoe company traded on the Tokyo stock exchange. In 2023 it had an operating income of 54.2 billion Yen (about $361,746,000,000), with only 8,900 employees. It has over 1,900 outlet stores and many more partnerships around the world.

It owns the Race Roster and Runkeeper brands.

About ASICS

In 2023 alone, Asics saw 239% growth in stock trades and grew from the 10th most-traded sneaker brand in the world to the 5th.

More than half of Asics’ revenue comes from high-performance running shoes, with its largest markets being Europe (27% of sales), North America (21% of sales), and Japan (16% of sales).

Nike actually used to sell Asics shoes after Phil Knight visited Japan back in 1963, but the relationship fell apart and Nike ended up keeping the name rights of several of Asics’ shoes. Any brand that is impressive enough for Nike to work with and subsequently sue must be a strong competitor.

#2 UGG

UGG is most famous in recent years for its sheepskin boots but it also sells accessories, other shoes, home goods, and clothing. It is a subsidiary of Deckers Brands.

In 2015, UGG began producing Disney-themed footwear with popular characters and movie-tie in branding. In 2020 it launched its ready-to-wear apparel line which focused on athleisure attire.

The UGG Brand

According to independent stock trackers, UGG is the 1st top-traded stock among shoe companies and the fastest-growing shoe company on the market. It has seen a record number of stock trades and sales in recent years and had 154% year-over-year company growth in 2023.

UGG is riding the success of its famous sheepskin boots into the future, and it looks like investors and customers alike all agree.

#3 On Holding AG

On (NYSE:ONON) is a Switzerland-based sportswear company founded in 2010 that has quickly expanded to become a major player in the footwear industry.

After just nine years, On controlled over 40% of the domestic shoe market in Switzerland, 10% in Germany, and 6.6% in the United States which is now its largest single-country market. On is sold in more than 55 countries. Experts estimate that On controls around 2% of the global footwear market.

On Running

In 2024, On reported sales growth of 29.4% over 2023 while its operating profit increased by 204.5% during the same period. Those are winning numbers that giants like Nike simply cannot match!

On earned widespread praise and attention when it launched its Cloudboom Strike LS high-performance running shoe for the 2024 Olympics. Made using new methods and robotic equipment, the Cloudboom weighs only six ounces and requires only seven components as compared to 150–200 components in shoes of comparable design. It earned praise for being so effective while reducing waste and lowering the environmental impact of shoe production.

#4 Xero Shoes

Xero Shoes is a private footwear brand made by Feel the World Inc., and founded in 2009. It began with DIY sandals and minimalist and minimalist footwear. It gained early and widespread success after its presentation on Shark Tank in 2013 when it rejected a $400,000 investment offer from Kevin O’Leary.

Xero Shoes Brand

Xero shoes were worn by U.S. Olympic swimmers when they were not inside the pool and by the members of the U.S. archery team. In 2020 the private equity firm TXP Group paid $12.5 million for a minority stake in the company and it quickly expanded into Europe in 2021.

Xero Shoes announced its new Born to Run line of shoes in 2023.

#5 Veja

Veja is a France-based footwear company founded in 2004. It is focused on organic, sustainable, and responsible production of running shoes and accessories. In its short history it has an impressive list of collaborations and endorsements from celebrities, athletes, and even royalty.

Veja Footwear

Veja’s shoes are made using organic cotton and wild rubber sourced from the Amazon, vegetable-tanned leather, and materials made from recycled plastic bottles. It works with a cooperative of cotton farmers in Brazil and collects bottles from the streets in Rio de Janeiro and São Paulo to produce the waterproof mesh on its soles.

It won the Sustainable Business Award from The Guardian and the Ethical Award in Fashion from The Observer.

#6 Hoka One One

Hoka is another new footwear company that was acquired by Deckers Brands (which also owns UGG). It was founded in France in 2009 and is a California-based company. In contrast to other minimalist shoes and trends, Hoka focused on “maximalist” shoes, providing more cushion and larger midsoles to attract downhill runners.

The Hoka Brand

Ultramarathon runners quickly grew to love the Hoka shoe style and other runners jumped on the trend for its maximum cushion and low weight. Ten years after its founding, Hoka was already worth more than $1 billion and continues to grow. It now sponsors dozens of professional runners and trail and triathlon athletes, among others.

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