The Hindu Business Line : ‘Franchise system at core of our brand’s success’

Today holistic health and beauty care have caught on in a big way. That is why there is the increasing popularity of the Indian philosophies of Yoga, Meditation and Ayurveda.

Shahnaz Hussain

Debdatta Das

Shahnaz Hussain is a name to reckon with as is her brand Shahnaz Herbals in the world of beauty care. Having started off as a solution to harmful side effects of chemical-based cosmetics, the brand has come a long way, now setting up an entire chain for direct selling in India, Veda Dynamics. BrandLine caught up with Hussain for a chat on her journey as the creator of the brand so far.

When and how did the journey of Shahnaz Herbals begin?

I started my first herbal salon in 1970. I studied cosmetic chemistry and cosmetology for ten years at the beauty schools of the West, such as Helena Rubinstein, Lancome, Christine Valmy and Lean of Copenhagen. During my training in London, I came across some instances that caused me to wonder if I had chosen the right career. There was a newspaper report about a London model who became blind after using a certain mascara. She later committed suicide, unable to face the consequences. There was a similar incident of an adverse reaction after the use of a sun-protection lotion, which caused severe burns on the skin. I learnt about the chemical ingredients that carry the risk of such dangers.

In a way, these tragic incidents changed the course of my life and career. I thought, if people are committing suicide due to the use of chemicals and their dangerous side-effects, I will evolve a treatment that is safe and without risks. I decided to go back to my roots, to Ayurveda, the ancient Indian system of herbal healing. So, I started my first herbal clinic in my own home, based on the Ayurvedic system and adopted the principle of ‘care and cure.’ I devised my own treatments and began to formulate my own products, based on Ayurveda.

When was it that you realised that you needed to expand and broaden the horizons of the brand?

Our clinics have expanded on a unique franchise system and a personal style of growth. It is also the basis for all our ventures, shops, beauty schools and spas. Initially, the expansion was not the result of a plan or a conscious decision. A friend from Kolkata wanted me to train her so that she could start her own salon. So, after training her, we worked out a simple agreement by which she could start a Shahnaz Herbal clinic and follow the treatments devised by me. This was the beginning of my franchise system and also my training institute.

In 1978, my first franchise clinic opened in Kolkata. The Kolkata opening received a fantastic response. Soon we were flooded with letters and there was a clamour for franchises. I began to encourage ordinary housewives to open salons in their own homes so that they could achieve financial independence and yet be close at hand to attend to their home and family. Within the first year I had 80 franchise salons in India and adopted the same model for the opening of my salons abroad as well.

What has the brand’s journey been like, ever since its inception in India?

I have adopted some distinctive marketing techniques and strategies, never relied on commercial advertising and have even rejected the existing salon treatments and devised my own. I formulated the products myself and have till today given a lot of importance to R&D. In fact, the products have grown out of clinical usage, based on client feedback. Initially, we did not enter the retail market. Our salons became the outlets for our products as it established the faith of the client and customer in the brand. We entered the retail market in the ’90s, having established brand loyalty and a leadership position in the Ayurvedic beauty care market. And with the opening of our first outlet in Kolkata and the press conference and events that followed thereon, unknowingly, a brand was born. Our franchise system is at the core of the success of the brand. We not only offer the franchisee a successful business model, but support in terms of R&D, introduction of new products and innovations, as well as publicity.

Ever since its inception, what has made the brand so popular across the globe?

When I started my beauty business, the “back to nature” trend was gaining ground. People were becoming aware of the damage caused by chemical pollutants and ingredients. We combined Ayurvedic ingredients with the latest techniques in cosmetic science to formulate products for modern demands. We became known for our therapeutic products and our treatments for specific skin and hair problems. During my trips abroad and wherever we showcased our products, I made it a point to emphasise the healing properties of Ayurvedic ingredients and how they can provide the ideal answers to cosmetic demands. We gave top priority to R & D and even established our herb and flower farm to exercise quality control from the raw material stage. Our Shahnaz Herbal salons and Forever Beautiful shops have spread across the world. We have also received prestigious international awards for quality. Thus the brand is ideally positioned both in the domestic and international markets as the leading Ayurvedic beauty care brand.

In a world where there already existed the so-called ‘doctor brands’ that were all about treatment and cure, how did Shahnaz Herbals make its mark?

Today, Ayurvedic aesthetic treatments have become an important component of ‘cosmeceuticals’. Our greatest strength is that we offer treatments for specific skin and hair problems and formulate therapeutic products, along with products for general beauty care. Today holistic health and beauty care have caught on in a big way. That is why there is the increasing popularity of the Indian philosophies of Yoga, Meditation and Ayurveda. In fact, Ayurveda being a holistic system is also one of our greatest strengths. It is not only ideal for beauty care, but for spa treatments too.

Today, with the concept of “total well-being” gaining ground, Ayurveda is poised to become the healing system of the future. This concept of holistic beauty care was unique and caught on worldwide. The efficacy of our products and their success in skin and hair treatments has helped us to establish Ayurvedic beauty care and cure.

Was it a conscious decision to keep the brand identity premium?

It was never a conscious decision to keep the brand identity premium, but that is how the brand developed, since our treatments were exclusive. As I mentioned, our products grew out of clinical usage. Our concentrated effort has been on quality and purity and to achieve this, our brand developed as a premium one and we have been selling at the high end of the market. Today, after establishing brand loyalty, we have also entered the middle segment of the market with our Shahnaz Forever range. However, we have become known as a premium brand and this strengthens our position in the middle segment too. And now, with the Veda Dynamics range of products, we have also entered the direct selling segment. It is associated with a premium brand name and this will surely provide an impetus to direct selling. Therefore, the brand is ideally positioned in the various segments of the market.

What are your plans for Shahnaz Herbals in the future?

We are looking at further expansion of our franchise salons, beauty institutes, lifestyle shops and spas, and are introducing day spas. With spa treatments gaining ground, day spas will become popular in the service sector. We already have retail counters in large stores, with trained beauty advisors. With department stores and malls catching on as shopping destinations, the focus is on introducing a further 250 such outlets with beauty advisors. We will also be targeting smaller areas, like small towns.

Also, initiatives such as Veda Dynamics to reach out to the masses having been a predominantly premium brand, what is it aimed at?

We intend to establish ourselves as the leader in all segments of the market. Our effort is to provide quality products, based on Ayurveda, to all segments. It is a practical application of a holistic system.

That is why the Veda Dynamics range comprises products for beauty and health care. The association of Veda Dynamics with a premium brand name will help to establish it as the leader in the direct selling segment.

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