Shahnaz Husain - A Successful Indian Woman Entrepreneur

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.

Diversification

The Group has diversified into Ayurvedic centers for Panchkarma, Dhara and Kerala massage.²

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2] Panchkarma is an ayurvedic revitalization program. It is a complex system of therapeutic actions which activate the curative powers of the mind and body. Panchkarma literally means five actions, which flush out the system and eliminate toxins from the body. Dhara means flow, and signifies downward flow. This is a pre panchkarma therapy to open the channels of the mind and body to facilitate treatment. The renowned Kerala Massage also uses this form of therapy. Various essential oils such as Chandanadi Tel, Dashmool Tel, Ksirabala Tel, Dhanvantara Tel, etc. along with a variety of powders are used in this form of therapy (Refer Exhibit V).

Case Details

Case Code : LDEN012
Themes: Corporate Social Responsibility, Woman Entrepreneurs
Case Length : 11 Pages
Period : 1980-2003
Organization : Shahnaz Husain Herbals
Pub Date : 2003
Teaching Note : Not Available
Countries : India
Industry : Cosmetics and Skin Care

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