Shahnaz Husain - A Successful Indian Woman Entrepreneur

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Themes: Woman Entrepreneurs
Period : 1980-2003
Organization :Shahnaz Husain Herbals
Pub Date : 2003
Countries : India
Industry : Cosmetics and Skin Care

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Case Code : LDEN012
Case Length : 11 Pages
Price: Rs. 300;

Shahnaz Husain - A Successful Indian Woman Entrepreneur | Case Study

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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 said, "I removed the banner and since then I have never advertised. I have let my products speak for themselves." Shahnaz was disturbed by the fact that India was not represented in any of the Global beauty forums of the world beauty congresses. Deciding to change this situation, she represented the country for the first time in the CIDESCO1 beauty congress in the late 1970s. "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," said Shahnaz. She was appointed President for the day's proceedings at the congress and 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. Shahnaz was the first Asian whose goods were retailed by the the Galeries Lafayette in Paris. Although it was not easy to enter the highly competitive western markets and especially difficult to attract attention to the Indian system of Ayurveda, she was able to gain a firm foothold in the markets. Shahnaz Husain products are sold at many prestigious stores around the world such as Harrods and Selfridges in London, the Galeries Lafayette in Paris, Bloomingdales in New York, the Seibu chain in Japan and Sultan Stores in the Middle East. Her products are 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. She has a large network of over 600 franchises and associate clinics around the world. All the franchisees are required to undergo training in specialized treatments at Shahnaz Husain's school of beauty therapy. All franchisees obtain the right to use the Shahnaz Husain name and her specialized treatments and are allowed a 30% profit margin on the sale of Shahnaz Husain products. In 2002, the Shahnaz Husain Group obtained distributor rights for Australia, New Zealand and the Fiji Islands. Distribution channels were first set up in the major cities of Australia, and later in New Zealand and Fiji. This was followed by the setting up of herbal clinics, first in Sydney and later in other Australian cities, New Zealand and Fiji by the first half of 2003. 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.

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1] CIDESCO is the world's major beauty therapy association. Founded in 1946, its head office is located in Zurich, Switzerland.