Operator: And your next question comes from a line of Jim Duffy from Stifel. Your line is open.
James Duffy: Thank you. Good afternoon to the On team. We’re hoping you can give us an update on some of the metrics you’re seeing in your D2C business. Specifically, we’re interested in how you’re seeing the mix of new customers versus repeat customers and the mix of new products versus legacy products?
Martin Hoffman: Hi, Jim. Thanks for the question. So you have seen that the D2C engine continues to be extremely strong and really the power of our multichannel distribution has proven to be very strong, again, in the numbers. For us, it’s a long-term strategy to grow D2C stronger than wholesale. And so the Q2 numbers are a further validation of that. If we look into the numbers, we continue to see a very healthy and comparable mix when it comes to repeat customers and new customers. So the growth is really driven by both customer groups. It’s driven by a very balanced mix of products along the different customer groups that we are trying to reach. So from running, of course, with the products that David mentioned earlier, but then also into tennis, into apparel, into outdoor.
So this gives us a lot of confidence going into the holiday season. We were able to invest more in upper funnel marketing and in brand building compared to last year where we were reducing our marketing spending to compensate for some of the air freight. So we have built a strong funnel. We laid it out on the call that we have seen a record in terms of visitors to our website, which clearly shows the heat of the brand. And so, as I said, this gives us confidence for the second half of the year.
James Duffy: Great. And then it sounds as though the management team has recently returned from marketplace visits in Asia. Can you speak about those visits and the inspiration to the strategy and capital allocation, if there’s any difference in your view after visiting the marketplaces? Thank you.
David Allemann: Yes, thank you, Jim, for the question. Yes, so we — actually there was a picture on the call as well for the ones of you who saw it. So, quite a sizable group from the management team visited especially China. And we’re constantly visiting markets, right? So we spend a lot of time with our consumers. It’s very, very important for us to understand where the consumers are moving and what’s important to our fans. So this is what we’re always doing. Unfortunately, we were very limited in traveling to China over the last year. So this was the first time since COVID broke out that we could actually go to China. So we spent time with the team. And what we learned is A that On has a very, very strong or kind of reaches a very, very strong demand and consumer segment in China, but it’s still very unknown.
So we are at the very, very beginning of our journey in China. The local team has been amazingly entrepreneurial in how they’ve built on and how they have responded to the Chinese consumer through a very, very difficult time. So we’re seeing huge potential in China. And we’re also seeing that retail works for On, it works for ON in China. And it will be an important pillar for our future growth. So we feel it’s very much an opportunity. We have the problem that most stores are too small, which is a great problem to have. So we’re looking into what’s the right size of the stores within China, but also outside of China. So really a lot of insights that we can also take from China to the rest of the world. And we also spent some time talking about Japan and Australia.
