Manyavar Uses AI to Improve Retail Decision-Making

Indian ethnic wear brand Manyavar is integrating artificial intelligence and advanced data analytics to refine its retail operations and eliminate guesswork in decision-making. The company has achieved revenues exceeding ₹1,000 crore with gross margins above 65% by relying on data-driven strategies.

Vedant Modi, Manyavar's Chief Revenue Officer, stated that the brand's product and inventory decisions are guided by data rather than personal taste. The company meticulously categorizes garments by attributes like color, texture, fabric, and design type using numerical codes. This granular data allows for automated inventory allocation to stores based on consumer trends.

Modi highlighted that consumer behavior and product preferences vary significantly by location. For instance, inventory assortments between different stores in Delhi can differ substantially. Approximately 70-75% of business decisions are algorithm-driven, with AI handling edge cases.

Manyavar aims for a 90% sell-through rate for its store inventory. Algorithms identify underperforming products in one location and facilitate their automatic transfer to other stores where they are in higher demand. Remaining inventory is donated, allowing the brand to maintain premium pricing without resorting to discounts.

The brand has compiled two decades of historical data, totaling around 850 million data points, into its AI systems. This approach of combining detailed data, automation, and AI is reducing guesswork, improving inventory turnover, and protecting profit margins, establishing technology as a key competitive advantage in traditional retail.