 "\"Franchising is ideal for our business\"")
A brief history of the enterprise
I opened the first branch of Shahnaz Husain salon in Chanakypuri (New Delhi) in 1975. For seven years, between 1971 and 1978, I was on my own. In 1979, my first franchised clinic opened in Kolkata. Today, we have a chain of over 400 franchised salons in India and abroad.
How the idea of building a chain came about
Initially, our franchisee system was not a consciously conceived idea.A friend from Kolkata, Threety Irani, came with a list of Shahnaz products she wanted to buy. At that time, the products were only available at my salon. Many of them were therapeutic products for specific skin and hair problems. She asked me to train her and her daughters so she could start her own beauty salon. We worked out an agreement by which she would have the right to use the Shahnaz Herbal name and carry out her specialised salon treatments, as well as sell the products. This agreement later became our franchisee agreement. This was the start of our franchising business and also my beauty training academies.
Things to keep in mind while venturing beyond home market
It is essential to have a good product distribution system in place. For salons, the preferred location is a prominent commercial area/market, preferably on the ground floor with good frontage, or on the first floor with easy accessibility.
Strategy/business model adopted for expansion
I thought franchising would be a good way of extending our salons and promoting our specialised treatments. I established customised beauty care, based on personalised style. The franchisee system proved ideal for this kind of service as we trained the franchisees ourselves. I also adopted a distinct style to open the salons: it was all based on personal interaction, where I met people, listened to their problems and provided beauty solutions. Thus, unknowingly, while spreading ayurvedic beauty care, a brand was born, and our chain of franchised salons grew into a global network.
Maintaining consistency of service across locations
The selection of the franchisee is a very critical decision because it is a key link in the chain. Each franchisee has to undergo training and acquire the Shahnaz Husain diploma and post-graduate qualification in beauty at Shahnaz Husain's beauty school. Our franchisees are required to have standardised interiors, equipment and a commitment to a positive customer experience. The franchisee is provided with the necessary assistance in site selection, project management, layout and interiors and marketing.
Is it more difficult building a service brand?
What is unique about the company is that Shahnaz Husain is not a faceless brand name or corporation. The image that is foremost in the mind of the consumer is that of a real person who is trained in cosmetology and cosmetic therapy. We have an integrated system of salon chains and product excellence. This format is an integral part of our business strategy.
Challenges faced & lessons learnt
Entering the international market was the biggest challenge. India was not adequately represented then. I participated in the Festival of India in London in 1980 on my own, and was given a counter in the perfumery section at Selfridges (UK). The entire consignment sold out in three days. From there, we moved on to Harrods in London, Galeries Lafayette in Paris, the Seibu chain in Japan and La Rinascente in Milan.
Setting up a countrywide distribution network was also a big challenge as our salons were expanding fast.
If you had to start over, what would you do differently
I would follow the same strategy.
Shahnaz Husain
founder & CMD, Shahnaz Husain Group of Companies
I opened the first branch of Shahnaz Husain salon in Chanakypuri (New Delhi) in 1975. For seven years, between 1971 and 1978, I was on my own. In 1979, my first franchised clinic opened in Kolkata. Today, we have a chain of over 400 franchised salons in India and abroad.
How the idea of building a chain came about
Initially, our franchisee system was not a consciously conceived idea.A friend from Kolkata, Threety Irani, came with a list of Shahnaz products she wanted to buy. At that time, the products were only available at my salon. Many of them were therapeutic products for specific skin and hair problems. She asked me to train her and her daughters so she could start her own beauty salon. We worked out an agreement by which she would have the right to use the Shahnaz Herbal name and carry out her specialised salon treatments, as well as sell the products. This agreement later became our franchisee agreement. This was the start of our franchising business and also my beauty training academies.
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The Kolkata store got a fantastic response. Soon there was a clamour for franchises. I encouraged and trained housewives to open salons in their own homes. Within the first year, there were 80 franchised salons in India.
Things to keep in mind while venturing beyond home market
It is essential to have a good product distribution system in place. For salons, the preferred location is a prominent commercial area/market, preferably on the ground floor with good frontage, or on the first floor with easy accessibility.
Strategy/business model adopted for expansion
I thought franchising would be a good way of extending our salons and promoting our specialised treatments. I established customised beauty care, based on personalised style. The franchisee system proved ideal for this kind of service as we trained the franchisees ourselves. I also adopted a distinct style to open the salons: it was all based on personal interaction, where I met people, listened to their problems and provided beauty solutions. Thus, unknowingly, while spreading ayurvedic beauty care, a brand was born, and our chain of franchised salons grew into a global network.
Maintaining consistency of service across locations
The selection of the franchisee is a very critical decision because it is a key link in the chain. Each franchisee has to undergo training and acquire the Shahnaz Husain diploma and post-graduate qualification in beauty at Shahnaz Husain's beauty school. Our franchisees are required to have standardised interiors, equipment and a commitment to a positive customer experience. The franchisee is provided with the necessary assistance in site selection, project management, layout and interiors and marketing.
Is it more difficult building a service brand?
What is unique about the company is that Shahnaz Husain is not a faceless brand name or corporation. The image that is foremost in the mind of the consumer is that of a real person who is trained in cosmetology and cosmetic therapy. We have an integrated system of salon chains and product excellence. This format is an integral part of our business strategy.
Challenges faced & lessons learnt
Entering the international market was the biggest challenge. India was not adequately represented then. I participated in the Festival of India in London in 1980 on my own, and was given a counter in the perfumery section at Selfridges (UK). The entire consignment sold out in three days. From there, we moved on to Harrods in London, Galeries Lafayette in Paris, the Seibu chain in Japan and La Rinascente in Milan.
Setting up a countrywide distribution network was also a big challenge as our salons were expanding fast.
If you had to start over, what would you do differently
I would follow the same strategy.
Shahnaz Husain
founder & CMD, Shahnaz Husain Group of Companies