Packaging art into lucrative biz opportunity
The ancient art form perfected and developed into a skilled craft and a profitable business opportunity is Heritage for Henna based out of UAE. In an interaction Fathia Ahmed, CEO, Heritage of Henna shares the success and growth of the brand through franchising. Read on.......
Namita Bhagat (NB): Share the inception and growth of ‘Heritage for Heena’ with us.
Fathia Ahmed (FA): I am from Emirates and knew the henna’s (myrtle) qualities as a cosmetic ingredient like many young woman of the Middle East. The ancient art form of body painting includes usage of henna which is one of the first beauty products ever developed, with its rich colored dyes. The practice has been followed across the Middle East and Asia for thousands of years. Further, being an artist, I found this concept interesting. I envisioned that this beautiful art heritage should be preserved. During the course of my studies I did extensive research on its origin and travelled widely to document the details of this fascinating art. Later, I realised that there was a potential; for use of henna worldwide and set out to package this art into a lucrative business opportunity. Thus ‘Heritage for Heena’ was established in 2002.
NB: What is the USP of the brand?
FA: The ancient art form has been perfected by Heritage for Henna and developed into a skilled craft, preserving designs and decorations passed down through the generations. Today the stunning variety of patterns has become very popular with both men and women of all nationalities. We have also developed contemporary designs to ensure acceptance among new generations and establish henna as a modern global art.
NB: What are the factors that inspired you for taking up franchise route for brands’ expansion in the region?
FA: Due to wide appeal of the concept, it has fast become a profitable business opportunity. Its reputation, respect and range, has created considerable interest with those seeking to establish salons in other parts of the world for a relatively modest capital outlay. In the UAE, the journey started in one small Khaimeh at the Jumeirah Beach Hotel, Dubai. It was a huge success with foreign visitors and confirmed my belief that henna decoration has a massive market out there. Sponsored by the Dubai-based Mohammed Bin Rashid for Young Business Leaders, the dream became reality.
NB: How many locations do you have currently?
FA: Heritage for Henna has grown rapidly with 45 majalis (centres) now located in some of most stylish locations throughout the Emirates, including Burj Al Arab, Atlantis, Bab Al Shams, Souk Madinat, Souk Al Bahar, Sheraton and Jumeirah International. This amazing accomplishment confirms the commercial viability of Heritage for Henna’s unique approach. By rejuvenating this heritage art and marketing it in a modern way has opened the doors to expand globally with partners who share our ambitious vision.
NB: What is the operational strategy of the company to enhance its reach in the region?
FA: Always fresh, always natural and always pure. These words describe the highest quality ingredients skillfully and carefully prepared by Heritage for Henna. It is one of the main reasons for it becoming the leading global company in contemporary use of the product. To maintain quality, Heritage for Henna set up its own farms in carefully selected regions, where top quality henna shrubs are cultivated. In addition, considerable investment has been made to select and train only the most talented henna artists. The combination of providing a professional service coupled with elegance and fashion has been the core of its success.
NB: What is the start up cost of franchise outlets of your company in UAE in terms of space and money? What are the selection criteria for your franchisees?
FA: The estimated initial investment including franchise fee ranges from AED 340,000 – AED 499,000. The continuing fee or royalty is seven per cent of the gross sales and is payable weekly. The fee entitles the franchisee to use brand’s service mark, use of its distinctive system, marketing support, and assistance in on going business development, counseling and other benefits. Also, the Heritage for Henna name reputation is an important part of our business. The franchisee will spend a minimum of AED 8000 on grand opening advertising during the first three months of operations and two percent of the gross sales per month on local advertisement. In case, the company establishes fees for marketing fund, the franchisee will be expected to make contribution in the designated fund up to one percent of the weekly gross sales.
NB: What kind of training is given to the franchisee for doing business?
FA: The selected franchisee needs to participate in an initial training course form 15 to 30 days at maximum. The initial programme will focus on all aspects of our company’s franchise system and is comprised of class room and on the job training.
NB: Could you shed some light on the nature of company’s franchise agreements?
FA: The initial term of the franchise agreement is five years from the date, the franchise agreement is signed. The agreement is renewable for three additional terms of five years each with a renewal cost of 50 per cent from the initial franchise fee, providing the franchisee has complied with the provisions of the franchise agreement.
