Tariff Shock: Sustainable Sneaker Start-Up Okepas Battles a Broken Supply Chain

The Okepas case explores the challenges faced by a sustainable sneaker startup as it confronts a sudden and dramatic increase in US tariffs on Chinese-manufactured goods in April 2025. Okepas, founded by industry veterans, built its business model around mass customisation, sustainability, and a lean, China-based supply chain. The company’s innovative approach enabled rapid, on-demand personalisation and minimal inventory, but left it highly exposed to geopolitical risks. When tariffs on footwear imports soared to 145%, Okepas’ cost structure became unsustainable, threatening its survival in its largest market.

The case highlights the complexities of global supply chains, the risks of political and economic shocks, and the strategic decisions required to build resilience and ensure long-term viability in a volatile international business environment. As a secondary focus, the case demonstrates how the company positioned itself as a category-defining brand by offering personalised products at competitive prices while minimising environmental impact.

Set in an operations scenario involving production, sourcing, and distribution, this case explores how a small start-up tackles challenges related to mass customisation, sustainable components, and new production technologies. In addition to these challenges, it also has to rethink its entire operations strategy due to rising tariffs on parts produced outside the US.

In addition to the classic supply chain management concepts of delayed differentiation (postponement) and mass customisation, students will learn about (1) supply chain risk management in the form of tariffs, (2) challenges unique to start-ups, (3) environmental, social, and governance (ESG) issues, particularly sustainability, and (4) flexible manufacturing technologies.

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