Introduction One of India's most successful women entrepreneurs. Her company, Shahnaz Husain Herbals is one of the largest manufacturers of herbal products in the world. Shahnaz Husain Group, based in New Delhi, worth $100 million. Employed about 4200 people in 650 salons spread across 104 countries. The average growth rate in the initial years (late 1970s to the early 1980s) was 15-20%. In the 1990s the average growth rate was 19.4%.
Awards "The Arch of Europe Gold Star for Quality" "One of the Leading Women Entrepreneurs of the World" "The 2000 Millennium Medal of Honor" "Rajiv Gandhi Sadbhavana Award“ “Padma Shree (2006)”
The Making of an Entrepreneur Belongs to a royal Muslim family Migrated from Samarkhand to India Later held high positions in the princely kingdoms of Bhopal and Hyderabad before India's independence. Schooling in an Irish convent Developed a love for poetry and English Literature.
The Making of an Entrepreneur (cont’d..) Advantage of growing up in a traditional family and receiving a modern education. Married at the age of 15 and was a mother by the next year. Husband was posted in Teheran, Iran She developed an interest in beauty treatments and decided to study cosmetology. To support the expenses of the training financially, she wrote articles for the Iran Tribune on various topics under different names.
The Making of an Entrepreneur (cont’d..) In the course of her studies, she learnt of the harmful effects of chemicals on the human body. Consequently, she turned her attention to Ayurveda. After leaving Teheran, she trained extensively in cosmetic therapy for 10 years in some of the leading institutes of London, Paris, New York and Copenhagen.
Return to India In 1977. Set up her own salon at her house in Delhi. Initial investment of Rs 35000. In contrast to salons offering chemical treatments, Shahnaz offered Ayurvedic products.
Entrepreneurship-The Shahnaz Husain Way Uses the Ayurvedic method of treatment. Pioneer and leader of Ayurvedic beauty products in the world offering "Natural Care and Cure". Shahnaz Husain Group offers exclusive salon treatments as well as a number of commercial formulations for the treatment of specific problems like acne, pimples, pigmentation, dehydration, alopecia (hair loss), etc. The Group's sophisticated R&D units develop the products Put them through stringent quality control tests.
Entrepreneurship-The Shahnaz Husain Way (Cont’d) Products are environment friendly and no testing is done on animals. The products offered by the group are entirely natural and carry the guarantee of purity and safety. Offers a wide variety of over 400 products for all age groups and for a variety of problems.
Uses natural ingredients - fruits, flowers, herbs, vegetables, honey, - as the base for most of her products. More complicated and exclusive treatments using gold and pearls have also been developed. All the procedures are carried out in accordance with the Ayurvedic system. Shahnaz Husain has never advertised. Relied entirely on word-of-mouth publicity to make her products known to customers. She believes that a satisfied customer is the best form of advertisement. Entrepreneurship-The Shahnaz Husain Way (Cont’d)
Before entering the retail market, her clinics were the only outlets for her products. By the 1990s, the range and popularity of Shahnaz products had increased so much that her products were carried by most of the big retail stores in India and abroad. Entrepreneurship-The Shahnaz Husain Way (Cont’d)
The Success Mantra Achieve growth due to the quality of her products and the result-oriented treatments she offers. She commented, "I have relied only on clientele feedback, based on clinical treatments and this is what has made the ranges truly unique and result oriented."
And the success… In 1977, when she returned to India, she set up a parlor at her home in New Delhi. She had then put up a banner with her qualifications on it. Within days she was booked for the next 6 months. She removed the banner and since then she never advertised. She let her products speak for themselves. She removed the banner and since then she never advertised. She let her products speak for themselves.
Aim “It was my aim to get India on the world beauty map as I felt terrible about the fact that India was never represented at any world beauty congress”. - Shahnaz Husain - Shahnaz Husain
And the corridor to her AIM… She represented the country for the first time in the CIDESCO beauty congress in the late 1970s. She was appointed President for the day's proceedings at the congress. She used this opportunity to focus the world's attention on Ayurveda.
The Turning Point The turning point in her business came when she represented India at the Festival of India in 1980. Her team was given a counter in the perfumery section of Selfridges in London. She managed to sell her entire consignment in 3 days and also broke the store's record for cosmetics sales for the year. As a result, she was offered a permanent counter in Selfridges.
The Turning Point (Cont’d) First Asian whose goods were retailed in western markets by: The Galeries Lafayette in Paris Harrods and Selfridges in London The Galeries Lafayette in Paris Bloomingdales in New York The Seibu chain in Japan Sultan Stores in the Middle East Also carried by other exclusive outlets in the Middle East, Asia and Africa.
Shahnaz Husain has used the franchising mode to expand her business in India and abroad. A large network of over 600 franchises and associate clinics around the world. In 2002, the Shahnaz Husain Group obtained distributor rights for Australia, New Zealand and the Fiji Islands. Business Mode
In India The Shahnaz Husain Group has about 40 distributors and more than 600 sub distributors all over India. The Group sells not only in the cities but also in the small towns. In addition, the Group owns about 20 clinics and outlets in New Delhi. All other outlets are run on the franchise system. The Group does not make any financial investment in its franchises, nor does it have any share in their profits.
Diversification The Group has diversified into Ayurvedic centers for Panchkarma, Dhara and Kerala massage. Two Shahnaz Husain Ayurvedic Health Resorts, one near Delhi and another in collaboration with the Hyakumata group of Japan in the US island of Saipan. A line of herbal drinks under the brand name Fitness Fiesta Shadrink. These drinks are low calorie, cooling drinks to be consumed in the summer. A special range of ayurvedic products for pets – Shapet.
Future Plans Has started work on formulations that astronauts could carry with them in their extraterrestrial sojourns to protect their skin from the ravages of space travel and slow down the ageing process. Sent National Aeronautics and Space Administration (NASA) free samples of her moisturizers
Lessons on Entrepreneurship Shahnaz Husain has acquired worldwide recognition. Her dedication and persistent hard work have paid off and she heads a Group which is the largest of its kind in the world. Shahnaz believes that a true entrepreneur is a person who has independence of spirit. Shahnaz says that to succeed, one must never give up and never stop trying. She puts in 18 hours of work and diverts all her energies into her company.
Her business sharpness and determined efforts combined with excellent products she creates have made the Shahnaz Husain Group the undisputed leader in the market for Beauty Products and Natural Remedies.
"She lives, sleeps, breathes her business. She is consumed with building a successful company which she has done." - Janine Sharell, Correspondent, CNN - Janine Sharell, Correspondent, CNN