
Reinventing Retail Tech — How 7thonline is Optimizing Merchandising with AI
In this episode of The PowerTalk Show, Navin Shetty sits down with Max Ma, Founder and CEO of 7thonline, a SaaS-based retail planning platform that’s transforming how global brands manage inventory, forecast demand, and drive profitability.
Key Takeaways
- ✓ Max grew up in China, came to the US for graduate school, and started working as a programmer for a retail company.
- ✓ He founded 7th Online in 1999 to help retailers make better inventory and merchandise planning decisions.
- ✓ 7th Online has worked with major brands including Calvin Klein, Tommy Hilfiger, Michael Kors, Canada Goose and Birkenstock.
- ✓ The biggest obstacle 7th Online solves is retailers' continued reliance on Excel, which creates data and process silos.
- ✓ 7th Online's platform keeps an Excel-like look and feel while replacing it with a real database and built-in AI.
- ✓ The company has maintained a single unified codebase across all customers globally since 2001.
- ✓ 7th Online has built AI-driven forecasting capabilities for over 20 years, well before the recent wave of large language models.
- ✓ One large fashion house saved $1 per garment by planning production a week earlier using 7th Online's system.
- ✓ Another client saw a 30% improvement in forecasting accuracy and $320,000 in additional sales within four weeks for one product category.
- ✓ Max's advice to founders is to stay in the business for the long term and focus on genuinely solving customer problems.
Max’s story begins with a programmer’s curiosity. While working in IT at a retail company, he noticed systemic inefficiencies—millions in unproductive inventory, siloed decision-making, and a heavy reliance on Excel. This sparked the idea for a smarter solution. Fast forward 26 years, and 7thonline is now trusted by brands like Calvin Klein, Tommy Hilfiger, Canada Goose, and more.
“Retailers are still stuck on Excel. And Excel is the source of most inventory problems.” – Max Ma
The Problem: Excel is Still in Charge
Despite massive advancements in retail technology, Max highlights a reality few discuss: 70–80% of retailers still rely on Excel to make million-dollar inventory decisions. “It creates silos, errors, and a total lack of control,” Max says. “Our goal was to replace Excel—without intimidating the user.”
7thonline mimics the Excel interface while running a powerful AI-driven engine beneath the surface. The result? Fast adoption, deeper data insights, and smarter forecasting.
The Solution: Smarter Planning Through AI
Max and his team began integrating AI into their system over 20 years ago—long before AI became a buzzword.
“AI isn't new. Our team has worked with it for 30 years. The difference now is people are finally paying attention.” – Max Ma
One standout feature? Test Buy Forecasting, which helps brands identify top-selling products within the first two weeks of launch. That agility alone has helped clients:
✅ Increase gross margins by 30–35%
✅ Reduce pre-season buys by half
✅ Allocate budgets dynamically based on real-time demand
Real Results: Case Studies That Matter
7thonline isn’t just theory—it’s delivering real-world results. One client saved $1 per garment by placing production just one week earlier. With millions of units sold annually, that adds up fast.
In another case, a brand used 7thonline’s AI forecasting for a single product category of 30 styles. In just four weeks, they generated $320,000 in additional sales—a number that speaks louder than any sales pitch.
The Future: AI-Powered Trend Mining
The next big thing? Max is excited about new LLM (large language model) features that act like an intelligent co-planner for merchandisers. The platform will soon be able to:
- Analyze macro trends from the internet and social media
- Identify new product opportunities
- Suggest seasonal forecasting based on current market shifts
“AI will not replace people—but it will amplify their decisions. That’s where the future lies.”
With 26 years in business, Max has weathered it all—from 9/11 to the pandemic. His advice to founders?
“Stay in there. Don’t give up. And always take a long-term view. Real value creation takes time, consistency, and courage.”
Whether you're in SaaS, fashion, or enterprise tech—this episode is a masterclass in strategic scaling, product vision, and staying power.
In This Episode
“Excel is the source of inventory problems.”
— Max Ma, Founder, 7th Online
“Stay in there. Don't give up.”
— Max Ma, Founder, 7th Online
“Business will come to you.”
— Max Ma, Founder, 7th Online
About the Guest
Max Ma
Founder, 7th Online
Max Ma is founder of 7th Online, a merchandise planning SaaS platform for retail and fashion brands, founded in 1999 after he noticed inefficiencies in retail inventory decisions while working as a programmer at a retail company. 7th Online has worked with brands including Calvin Klein, Tommy Hilfiger, Michael Kors, Canada Goose and Birkenstock, maintaining a single unified codebase across all global customers since 2001, with AI-driven forecasting capabilities the company has built over more than 20 years.
Frequently Asked Questions
What is 7th Online?
7th Online is a merchandise planning SaaS platform founded by Max Ma in 1999, helping retail and fashion brands like Calvin Klein, Tommy Hilfiger and Michael Kors make more accurate inventory and production decisions.
Why do so many retailers still struggle to move off Excel, according to Max Ma?
He estimates 70-80% of retailers still rely on Excel, which creates data and process silos since every user builds their own formulas with no way to aggregate data in real time or enforce corporate control over the numbers.
What real results has 7th Online delivered for clients?
One large fashion house saved $1 per garment, across tens of millions of units, by using the platform to place production a week earlier. Another client improved forecasting accuracy by 30% and generated $320,000 in additional sales within four weeks for a single product category.
What is Max Ma's advice for founders?
"Stay in there, don't give up." He points to surviving multiple major downturns, including 2001, the 2008 financial crisis, and the 2020 pandemic, over 7th Online's 26-year history, and stresses taking a long-term view focused on genuinely solving customers' real problems.
The Host
Navin Shetty didn't set out to build a media company
After a decade advising founders on go-to-market strategy across Dubai, Riyadh and Mumbai, Navin kept noticing the same gap: the most useful conversations he had happened off the record, over coffee, after the panel ended. The PowerTalk Show is that off-the-record conversation, recorded on purpose.
He hosts every episode himself — no rotating co-hosts, no outsourced pre-interviews. Guests get one rule going in: nothing is off-limits except numbers they’re legally required to keep private.
Under Business Talks Weekly, the show now anchors a small editorial operation producing written deep-dives, sponsor features and syndicated audio distributed across six platforms.
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