It was April 2025, and the markets were reeling from the latest slew of tariffs imposed by the United States (US) administration. Stefano Ferniani, CEO at Okepas, a new sneaker brand in the US offering customisable and sustainable sneakers, was working around the clock with his team to find solutions for their fledgling sneaker supply chain. But this would not be easy, given that the company’s entire production was based in China. It would require a comprehensive reassessment of every aspect of the supply chain—from shoe design and raw material sourcing to the production process itself.
These events were unfolding just as the shipment of Okepas sneakers was ready to be dispatched from Hong Kong to the US. In a climate of mounting political uncertainty, Ferniani recognised that every decision he took would determine not only the company’s immediate survival, but its long-term viability as a global brand.
The Okepas Sneaker
The global footwear market was predicted to reach a revenue of US$500.55 billion by 2025, with the US as the largest and most influential market in the sneakers industry. The US is set to generate an estimated US$25.31 billion in 2025, due to factors including its trendy streetwear culture, performance-driven innovation, and the powerful celebrity endorsements.
Okepas’ appeal was in its innovative positioning as a moulded sneaker brand. Moulded sneakers, often constructed as a single piece of foam or featuring seamless upper-to-midsole integration, are not only lightweight, but also provide ergonomic comfort, while reducing manufacturing waste. As consumers became more sustainability-conscious, these sneakers emerged as a strategic focus for both established brands and new market entrants. This fast-growing subsegment of the footwear industry has benefited from advancements in injection moulding, 3D printing, and a shift in consumer preferences toward minimalist designs and eco-friendly materials.
History of Okepas and the Rise of Crocs
Okepas was officially founded in Salt Lake City, Utah, in August 2023—but its story began decades earlier. In the early 1990s, Ferniani’s father, Aldo, invented the world’s first injected Ethylene-Vinyl Acetate (EVA) machine. This breakthrough technology transformed footwear manufacturing, becoming the foundation for millions of sneakers, clogs, and sandals you see on the shelves today.
Building on this innovation, Aldo launched Exo Italia in 1992, the first company to fully industrialise the method. Ferniani later joined the business, and when Exo Italia was acquired by Crocs in 2006, he transitioned into the role of Senior Director of Global Innovation, where he helped shape some of the brand’s most recognisable products.
Yet, even with Crocs’ massive success, Ferniani saw a gap. Consumers craved individuality, but most footwear remained rigid, standardised, and mass-produced. He imagined a future where anyone could design their own shoes in seconds—no design expertise required.That vision is what gave life to Okepas. Partnering with Dale Bathum, a seasoned entrepreneur, executive, and investor, Ferniani founded Okepas in 2023. The startup targeted a new and growing segment of consumers who wanted to be co-creators—not just customers purchasing off-the-shelf shoes.
From Mass Production to Mass Customisation
Okepas was born from a simple question: Could the efficiency of mass production be combined with the flexibility of customisation? The answer: Yes — through innovation in technological, digital, and business model.
To begin with, Okepas sneakers were mass-produced in a single colour — white — creating a lean, seasonless inventory. Customisation happened after production, on demand, through digital application of graphics or colours directly onto the shoe upper. In this manner, Okepas could serve both wholesale clients and e-commerce customers. The time-to-market for retail orders shipped by sea from China was reduced from the industry average of 15 months to just 2.5 months.
Okepas’ supply chain was designed to be not just lean—but intelligent, flexible, and future-ready. This enabled Okepas to expand internationally with minimal overhead, while reducing environmental impact and boosting consumer choice. Second, the Okepas model minimised the company’s exposure to foreign exchange fluctuations. Following industry norms, many Asian manufacturers priced their products in US dollars, fixed for the entire year. As a US-based company, Okepas was insulated from currency exchange volatility. This practice reduced financial uncertainty for Okepas.
An Innovative Just-In-Time Supply Chain Set-up
Okepas had structured its supply chain around a strategic partnership in China with one of the world’s largest, most technologically advanced footwear subcontractors. The result is an intentionally lean production model. Each season, the company makes just two core sneaker styles: UNO (unlined) and DUE (fully lined).
Sustainability was built in from the start. The UNO’s global warming potential is just 6.62 kg of carbon dioxide equivalent (CO₂e) per pair, placing it among the greenest sneakers on the market, while the DUE registers only 7.59 kg CO₂e per pair. These figures are in stark contrast to a typical pair of running shoes, which generates 14 kg CO₂e over its lifespan.
The manufacturing process began with the injection moulding of the shoe’s outer shell and insole, which were created as separate components. Once the white base shoes were completed, Okepas activated its made-to-order customisation process, triggered only after a customer has placed an order.
When the order was confirmed, the next steps included digitally printing the selected graphics onto the white upper, assembling all components, and performing stitching and bonding operations.
The key advantage of this agile, just-in-time model is that it eliminated the need to hold finished goods, thus allowing Okepas to avoid the risks of overproduction, price markdowns, and manufacturing waste. At the time this case study was being written in 2025, Okepas held an inventory of 1,200 white base shoes (about 600 unlined and 600 fully lined) in different sizes.
Geo-political trap?
When US President Trump’s administration enacted a sweeping tariff escalation on Chinese-manufactured goods, raising import duties on footwear to 145%, the consequences could have been far-reaching for Okepas. With these tariffs, each pair of sneakers sold in the US (previously the company’s largest market) generated a net loss. Every order fulfilled not only erased potential profit but also actively depleted company resources.
Ferniani had aimed to price Okepas sneakers competitively, starting at US$119, aligning with standard, non-customised sneakers to attract early adopters. But he now needed to fundamentally redesign the supply chain strategy - fast.
This is a real-time test for entrepreneurs keen to develop resilience in the supply chain. How can Okepas develop an operating model that addresses the increasingly complex challenges of global supply chains while ensuring long-term viability in a volatile international business environment?
To learn more about Okepas, please refer to the case study ‘Tariff Shock: Sustainable Sneaker Startup Okepas Battles a Broken Supply Chain’, written by Professor Holly Ott at the Rosenheim Technical University of Applied Sciences, Professor Wee Kwan Eng and Dr Cheah Sin Mei at Singapore Management University, and Professor Martin Grunow at the Technical University of Munich. To read it in full, please visit the CCX website by clicking here.
