The Influence of Inventory Costs on Product Sales: An Analysis in the Global Sneaker Market

Abstract

The pandemic has greatly impacted the global athletic shoe market, leading to supply chain instability and inventory management challenges. Taking the global athletic shoe market as an example, this study delves into inventory management issues from three aspects: store operations, price changes, and supply chain modules, and analyzes Nike's data in China and Vietnam in detail. The epidemic led to challenges, such as declining market demand, production disruptions, and supply chain problems, which affected the company's profitability. By analyzing inventory management strategies, this study proposes two key recommendations to help firms cope with uncertainty and improve inventory management efficiency. First, firms are advised to maintain moderate inventories to respond to changes in market demand flexibly. Second, inventory levels should be increased moderately through marketing programs and promotional activities to improve product competitiveness. These recommendations are intended to help athletic footwear and apparel companies meet the challenges of reducing inventory costs, increasing product sales, and ultimately achieving inventory management success during the epidemic.