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Kakaobuy Shoes Clearance Strategy: AI-Powered Inventory Optimization

2025-07-02
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In the fast-paced world of sneaker reselling, Kakaobuy

The Science Behind Sales Decay Prediction

Kakaobuy's proprietary algorithm analyzes hundreds of data points to create individualized sales velocity profiles for each shoe model. The system tracks:

  • Daily sales velocity trends
  • Price elasticity patterns
  • Competitor pricing movements
  • Seasonal demand fluctuations

Automated Risk Threshold Alerts

When the system detects a concerning sales pattern - such as a 35% drop in daily sales for a particular New Balance model - immediate action is triggered. The AI assigns risk scores from 1-5 based on:

Risk Level Sales Decline Days at Current Rate
1 (Monitor) 10-15% 3+
3 (Action Required) 25-35% 2
5 (Critical) 35%+ 1

Dynamic Promotional Strategy Generation

Upon reaching threshold alerts, Kakaobuy's system automatically crafts multi-phase promotional campaigns:

  1. Targeted Coupon Bundling:
  2. Graduated Discounting:
  3. Channel Optimization:

Recent Success: New Balance 550 Clearance

When the ALD New Balance 550s showed signs of slowing, the system implemented:

  • Day 14: Website banner placement + 15% discount for email subscribers
  • Day 5-7: Sitewide mention + combo deals with care kits
  • Result: Cleared 87% of inventory with just 11% profit margin reduction
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