How did Manyavar become a 30,000 crore company? : ft. Vedant Modi CRO Vedant fashions
Nov 25, 2024
auto_awesome
In this discussion, Vedant Modi, the Chief Revenue Officer of Vedant Fashions Limited, reveals the secrets behind Manyavar's meteoric rise to a âč30,000 crore enterprise. He shares how they utilize data to define products and keep deadstock below 3%. The strategy of leasing prime locations versus purchasing is examined, along with innovative training for fashion advisors. Modi also reflects on the challenges faced by family-run businesses scaling up, and the importance of a unique no-discount sales model in a highly competitive market.
Manyavar thrives by leveraging a data-driven approach to accurately match products with regional consumer preferences, achieving less than 3% deadstock.
The emphasis on providing exceptional in-store experiences through well-trained staff contributes significantly to customer loyalty and brand identity.
Implementing an AI-driven inventory replenishment system has transformed Manyavar's operations, ensuring timely and relevant offerings tailored to local markets.
Growing up in a business-centric family instilled valuable lessons in leadership and strategic thinking that guide the company's continued success.
Deep dives
The Journey of Success
The foundation of success for the company began with the journey of Ravi Modi, who started his career at a modest 150 square feet retail store in Kolkata at the age of 13. His early experiences as a salesman taught him invaluable lessons about customer perceptions, highlighting the importance of not judging customers based on appearances. This approach led to the realization that understanding customer tastes and preferences was crucial for effective inventory management. By actively engaging with over 100,000 consumers between the ages of 13 and 22, he established a strong understanding of market demands, laying the groundwork for future profitability.
Data-Driven Inventory Management
The company excels in profitability, underpinned by a data-driven approach to inventory management. The core principle revolves around understanding preferences at the pin-code level, allowing for accurate product offerings tailored to regional tastes. This analytical approach enables the brand to maintain a remarkably low dead stock percentage of under 3%, in stark contrast to industry standards that typically see 30% of products discounted. By leveraging data collected from numerous sources, the company can predict inventory needs accurately, further enhancing efficiency.
Technological Innovation in Retail
To optimize inventory processes, the company implemented an inventory replenishment algorithm back in 2008, which has since evolved into an advanced AI-driven system. This system tracks 30 to 40 attributes for each product, ensuring that the brand meets specific regional preferences in styles, fabrics, and quantities. In every store, only products that resonate with local tastes are offered, setting this company apart from competitors that provide uniform offerings. This commitment to understanding consumer preferences continues to be a hallmark of the brand's strategy and contributes significantly to its continued growth.
The Impact of Customer Experience
The in-store experience is a critical element of the brandâs success, significantly driven by well-trained sales staff. Each staff member is equipped with in-depth knowledge about products and best practices in customer service, ensuring guests feel valued and understood. Training goes beyond just product knowledge; it encompasses cultural and psychological insights, fostering an environment that treats every customer as a guest rather than a mere shopper. This philosophy, epitomized by their greeting of 'Namaskar Manivar,' creates an inviting atmosphere that keeps customers returning.
Navigating the IPO Journey
The transition to becoming a publicly listed company offered both opportunities and challenges, highlighted by a significant IPO process that brought substantial attention to the brand. The IPO roadshow aimed to secure investor confidence and funding, which included detailed presentations to various institutional investors. Engaging extensively with these stakeholders not only deepened understanding of the companyâs strengths but also allowed for honest discussions regarding future potential. The IPO process proved crucial in solidifying the brandâs presence, despite fluctuating market conditions at the time.
Embracing Innovation and Adaptability
A key strategy for the brand involves maintaining a mix of established inventory along with introducing new products regularly, challenging the status quo. This dual approach of innovating while adhering to reliable data keeps the brand relevant in the fast-evolving retail landscape. By introducing 20-25% of inventory based on new ideas untested by data, the company pushes the boundaries of creativity while refining its offerings. This commitment to both innovation and efficiency displays a fluid adaptability that positions the company for sustained growth.
Learning from a Family Legacy
Growing up in a business-oriented environment has profoundly influenced leadership perspectives and shaped strategic thinking. Conversing with his father about business and challenges over the years established a foundation of knowledge that continues to provide direction. The lessons drawn from his father's approach to time management, data analysis, and resilience significantly shape the young leader's everyday decision-making. This mentorship, rooted in familial bonds, serves as a motivating force to pursue excellence and progress.
đCheck out Odoo : https://www.odoo.com/r/JKWg
âïž Think Schoolâs flagship Communication course with live doubt sessions :
https://thethinkschool.com/sp/communication-masterclass/
đIntroduction:
In this episode, we have Vedant Modi, CRO of Vedant Fashions Limited. This company owns Twamev, Manthan, Mebaz and Manyavar-Mohe, Vedant Fashions Limited, was founded in Kolkata in 2002 by Ravi Modi. If you are deeply interested in Brand building, in-store Experience, and the Fashion Industry, this is a must-watch for you!
00:00 - Trailer
01:10 - Introduction
04:00 - Manyavar is bigger than Zara and H&M combined?
8.10 - Strategies to keep deadstock below 3%?
13:45 - Defining products using data points
15:33 - Ganeshâs in-store experience
17:55 - Scaling stores using pincode wise data
21:35 - What data points help you maintain 3% deadstock?
26:35 - Training fashion advisors/ Door-to-door Training?
29:34 - How to start a Manyavar franchise?
33:21 - How does Manyavar choose a prime store location?
36:32 - Do you buy or lease the Manyavar stores?
40:22 - Vedantâs Childhood and and Personal Life
50:50 - How was Manyavar built as a brand in such a large unorganized market ?
53:34 - How to manage working capital ?
56:58 - How did Manyavar manage such a quick and massive growth ?
1:00:1 - Why did Manyavar succeed when others could not ?
1:05:28 - Is there a SAAS data product for small retail stores available today ?
1:05:43 - Why do family run businesses fail to scale to a high level ?
1:11:25 - At what point of profit should a company bring in external auditor like KPMG ?
1:14:30 - Manayvarâs marketing strategy
1:18:30 - Why does Manyavar advertise in theatres?
1:20:06 - How does Manyavar gather insights without research firms?
1:23:24 - Lessons learnt from Pulseâs marketing research
1:27:30 - Different research stages in building a marketing strategy
1:30:53 - How advertising and marketing affects Manyavar's sales?
1:32:45 - Decoding the trend of celebrities marrying after featuring in Manyavar ads
1:34:15 - Why did Manyavar start as a menâs wear brand?
1:36:42 - Breakdown of Manyavar's product range by price and category
1:39:44 - How does Manyavar manage to have 90-95% Free Cash Flow?
1:41:25 - How does it feel to be the son of a billionaire?
1:42:57 - Do you ever feel like your achievements came more easily than expected?
1:45:13 - Do you ever feel the pressure of achieving more?
1:46:35 - How is Mr Ravi Modi as a Boss?
1:47:00 - What are IPO road shows?
1:49:40 - What are the questions investors ask at the roadshow?
1:51:14 - How did you feel when the IPO came out?
1:53:05 - What are the three most important attributes of Mr Ravi Modi?
1:55:40 - Summary
Our Best Indian Business Case Studies:
1. Asian paints - https://youtu.be/jGT6ob8hV6M
2. Amul - https://youtu.be/nnwqtZiYMxQ
3. Haldiram - https://youtu.be/Z7P-t_yc8gE
4. Lijjat Papad - https://youtu.be/EdpoEmifW7M
Think School is a Digital School that we all deserved, but never had
âșâșCheck out Think School's Online courses: https://www.thethinkschool.com
#thinkschool #businesscasestudy #geopolitics
Credits: CNN-News 18, WION, NBC News, Money control pro, Business standard, TV18,Business Today, ABC news, CNBC, ET now ,Bloomberg originals, Financial Times, DW documentary, AL Jazeera English, BBC news, Firstpost.
Get the Snipd podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share & Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered podcast player
Listen to all your favourite podcasts with AI-powered features
Discover highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
