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​Shahnaz Husain to introduce artificial intelligence in beauty treatments

In the business for four decades now, founder, chairperson and managing director of the Shahnaz Husain Group of Companies talks to Moneycontrol News

May 21, 2018 / 06:01 PM IST

In a market full of beauty products, and where almost every beauty blogger has his or her own cosmetic brand, Shahnaz Husain has come a long way.

In the business for four decades now, founder, chairperson and managing director of the Shahnaz Husain Group of Companies talks to Moneycontrol about a host of things — her business model, luxury perfume segment , her dream to see the world celebrating an international Ayurveda Day and her latest innovation of introducing artificial intelligence in beauty. Yes, that's right. Read on to find out more:

In a market full of cosmetic start ups, where does brand Shahnaz Husain stand?

We are the leaders of the premium segment in Ayurvedic beauty care. In fact, our middle segment products have also done well on the strength of brand identity. The Shahnaz Husain brand offers four decades of brand loyalty, having earned customer confidence and an assurance of time-tested quality. We feel that awareness of natural beauty products is high and the discerning consumer is opting for holistic and plant-based beauty products. At such an opportune time, holistic Ayurvedic beauty care is the strongest and most appealing sales pitch of the Shahnaz Husain brand.

While it is encouraging to see new entrepreneurs, the niche that luxury cosmetics once had is slowing fading. What do you think?

It is herbal beauty care that has been driving the growth of the beauty industry in India. With rising awareness and globalisation, as well as higher disposable incomes, several international and Indian companies have entered the market in the luxury cosmetics segment. A report on the Indian cosmetic industry says this segment is expected to grow at a CAGR of 20%; therefore, the luxury cosmetics niche is growing steadily and surely.

Tell us about brand Shahnaz Husain — what is your market positioning? Once we knew the brand for its herbal essence, is it still the USP of the brand?

Shahnaz Husain is a brand name that has been synonymous with the finest natural care and cure based on Ayurveda, the ancient herbal healing system of India. The most unique feature of the brand is that Shahnaz Husain is not a faceless brand-name or corporate. As the founder and CMD of the company, I am, myself, trained in cosmetology, cosmetic therapy and Ayurvedic beauty care. I am the reality behind the brand name. This sets the brand apart from the rest.

The brand is also associated with a unique integrated system of salon chain and product excellence, which rely on each other. The products have grown out of salon treatments, in actual user-conditions and based on massive client feedback. Known for product innovation, we have evolved over 380 products for beauty and health care.

What's new at Shahnaz Husain?

Now we are thinking about incorporating artificial intelligence. When I started my first herbal salon more than four decades ago, I followed the principle of customized beauty care, at the client card level. It was like preparing a data base. The details of the individual client would be noted down in the Client Card. Apart from basic details, hemoglobin levels, details of allergies, past history, treatments were all noted down. The client went for pathological tests, if needed. We maintained these records. But, now with computer programming, it is possible to create immense data bases, with many more details fed in, like geographical region, climatic conditions, ethnic characteristics, etc. The customer can refer to a virtual card, fill in the details and search for a custom based product online.

Indeed, with the help of artificial intelligence, the customer may be able to find a skin profile that is totally personalized and unique

How has the brand grown with time? Take us through the journey.

From one herbal salon on the verandah of my home in Delhi to a global chain of franchise salons, spa, retail outlets and beauty training schools, it has been a phenomenal journey. I opened my first herbal salon in 1971, in a small way. I rejected the existing salon treatments and devised my own. I also started formulating my own products, based on Ayurveda. These have become breakthroughs in beauty care and we have become known for our therapeutic products and treatments for specific skin and hair problems.

I had entered the international market in 1980 during the Festival of India in London. To everyone's surprise, we broke the existing sales records in Selfridges, one of London’s leading stores. We have sold at other international locations like Harrods, Galeries Lafayette in Paris, La Rinascente in Milan, the Seibu chain in Japan, Bloomindales in New York and El Corte Inglis in Madrid. We also started opening franchise salons around the world.

Today, the Shahnaz Husain Group operates in over 100 countries with its franchise ventures and direct product distributors.

Coming to numbers, the growth that we have been witnessing year-on-year over the last decade is around 19.4% and we expect it to be around 20% over the next 3 years.

(The company declined requests to share more financial details)

Are you looking at investing in the luxury segment?

Our premium ranges like Diamond, 24 Carat Gold, Pearl, Platinum and Plant Stem Cells are for the higher luxury segment. We have introduced the Shahnaz Signature Perfume specially created by Galimard, the world renowned house of perfume in Grasse, France.

Your brand has been used by generations now... can you tell us the most popular product of the brand?

Our fastest moving and highest selling product is Shalife Nourishing Cream. It is used extensively for the personal care of normal to dry skin, for anti-ageing treatments and is also used for facial massage in all our salons worldwide. Back in 1975, Shalife nourishing cream was selling at about Rs 35 for 40 gms. And today, it is selling at Rs 544 for 35 gms.

You have been a study paper in a global university... tell us more about it.

I did not rely on commercial advertising for my products and treatments, Instead, I relied on word of mouth because I believed that a satisfied client is the best advertisement.

After entering the international market, our franchise salons started opening abroad and a brand was born. Dr L.R. Hayes from Harvard University had come to Delhi. When he heard about my unique marketing strategy, he wanted to understand it, because he said the first thing they teach at Harvard Business School is that a company's financial budget should definitely include publicity and advertising.

I was invited to speak at the Harvard Business School on how I had established an international brand without commercial publicity. Subsequently, I became a Harvard case study on Brand Creation. Then Harvard conducted my interview and I became a subject and part of the curriculum in Business History for Emerging Markets.

Tasmayee Laha Roy
first published: May 21, 2018 06:01 pm

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