In the competitive sneaker resale market, Kakaobuy
The Sales Attenuation Early Warning System
Our proprietary algorithm monitors 17 key performance indicators across three dimensions:
Category | Key Metrics Tracked |
---|---|
Temporal Factors | Daily sales velocity, weekend spikes, hourly purchase patterns |
Market Response | Competitor pricing changes, limited-edition releases, social media trends |
Inventory Health | Warehouse dwell time, fulfillment cost ratios, seasonal relevance |
Intelligent Promotion Engine
When the system detects a 35% sales decline (threshold adjustable by product category), it initiates a four-phase response:
- Tiered Discount Activation: Initial 15% price reduction for returning customers
- Dynamic Coupon Allocation: Free shipping coupons for cart abandoners
- Bundle OptimizationSock or shoecare product pairings (22% conversion lift observed)
- Liquidation Mode: Progressive discounts increase 5% weekly until stock threshold reached
New Balance 580 Collection Case Study (Spring 2024)
Day 1-7: 42 units/day (baseline) Day 8: Alert triggered (27 units) Stage 1: 15% discount → 38 units/day Stage 2: Add loyalty points → 43 units/day Stage 3: Bundled with cleaning kit → 51 units/day Inventory cleared 11 days faster than manual method
The promotional scenarios all include carefully designed success measurements - we never "race to the bottom" with unsustainable price cuts. Each action is designed to protect brand equity while solving inventory objectives.
Retailers wanting to implement similar technology should visit Kakaobuy's technology portal