CHENNAI: As much as mankind has evolved over the years, so has its growing needs and wants. Going by Maslow’s hierarchy of needs, soon after the basic physiological and safety needs were taken care of, the emphasis on self-esteem and self-image (the need for grooming) topped the list of priorities.
In author Charlie Hix’s words ‘Looking good isn’t self-importance, it’s self-respect’. Perhaps, it is this that paved the way for small-time barbershops and beauty parlours to mushroom across the planet.
Soon came the premium high-end salons, many of them in five-star hotels, which drilled a hole through the pockets. There were few to no mid-segment, unisex, hygienic salons that catered to the likes of the majority in-between. This is where husband-wife duo CK Kumaravel and Veena Kumaravel stepped in and established Naturals Salon & Spa in Chennai. But, it was never a rosy path for the couple.
After raising funds, capital and hiring skilled resources, they launched their first unisex salon in Nungambakkam with an initial investment of `30 lakh in 2000. Little did they know that it would become an inspiring business story for millions to study and adopt.
In a span of 20 years, the couple, without an academic background in the beauty industry, built a salon empire with over 600 franchises across India and abroad. Kumaravel, the co-founder of Groom India Salon & Spa that owns the brand Naturals, talks about transforming an industry that was once considered a taboo into a commercially viable profession for many.
Breaking taboos
Despite coming from a family of entrepreneurs, Kumaravel’s ideologies were different. His mother was not in favour of his plan to venture into the salon market. “It was not considered a respectable profession those days. My mother suggested that I join hands with my brothers in the FMCG business, but it wasn’t about the dignity of labour or business for me.
I wanted to pursue something that was fair and ethical. I knew I was on the right path when I went to one of the Naturals outlets for a shave. One of the staff members identified me and thanked me. He had been in the industry for 14 years, of which 10 years were with Naturals. Those who called him a barber and hairdresser earlier were now calling him a hairstylist. He also happens to be the style director at one of the outlets. He’s just one among the many whose life has changed,” shares the Cuddalore native.
Experimenting with ideas
What started as six outlets — with Kumaravel and Veena managing three each — grew into a bigger brand. The hunger to scale up their business paved way for a franchise model. “The model had its own pitfalls, mainly because it was relatively new in the salon industry. We invested in the right people to make sure the quality and commitment were maintained across outlets. We even invested 50 per cent in franchises to help beginners and encourage more to come into the business.
A parental approach was taken to handhold them through the process. It was our reliability that made the whole concept work and spread the word,” notes Kumaravel. Known as the ‘Networker of women entrepreneurs’, Kumaravel ensured he created an opportunity for women to come forth and shine. It’s his intent that made way for over 400 female franchise owners to come onboard. But, the seed for this idea had been sown since the day of his youth, when Kumaravel was surrounded and influenced by strong women.
“After my father R Chinni Krishnan, who was the brains behind India’s first sachet shampoo, Velvette, passed away, the financial burden fell on my mother, who had to take care of her four children. He left us with a debt of Rs 2,50,000. She had studied only till class 10 and yet she handled her husband’s business, agricultural work, a tailor shop, a bakery — to pay back the money — and also ran the household. She’s an inspiration. Veena too did not want to settle for family life and dared to become an entrepreneur, which was not common then. Another role model is Anita Roddick of The Body Shop for her work ethics and principles. These are a few powerful women in my life,” narrates Kumaravel.
The power couple
Among the many family-run, multi-generational businesses around them, this husband-wife duo was not just partners in life but also at work. They stood by each other through ups and downs. “Entrepreneurs lead a lonely journey but I was fortunate enough to share it with Veena. Identifying each other’s strengths helped us resolve conflicts of opinions. Veena handled the HR and finance aspects of the business while I took care of marketing and branding. We divided our work and that’s how we started complementing each other. Problems are inevitable but solvable, provided you acknowledge it in the first place,” explains Kumaravel, a voracious reader and a motivational speaker.
The defining moment
Cut to 2020, just when the duo was expanding their global business steadily, a foreign virus pressed pause on their growth. The pandemic and its subsequent lockdowns came as a wake-up call for the salon and spa industry. Veena and Kumaravel, like the rest of the players in the market, were caught off guard by the restrictions imposed by the government. As their brand is a franchise model, the franchisees had to borrow money and pledge jewellery to pay its staff, had said Kumaravel in a Twitter post in May.
“We were able to pay our staff till April. Then there was news about a barber in the city testing positive and that went viral on social media. That created more fear.
Eventually, we garnered the willpower and opened once the lockdown was relaxed on May 23. People came in only for basic services such as threading, shave and haircut. They weren’t comfortable spending more time in the salon. How much profit will we make with that? There were no events like weddings or fashion pageants so that was also a loss. Another major risk is that banks are not giving collateral-free loans to even experienced people like us. They are unsure whether the business will do good in the near future,” he says.
If treading the path carefully was a task on one hand, keeping the customers satisfied was a challenge they didn’t anticipate. “One of the customers criticised us for charging extra for the PPE kit and that spread on social media. I could’ve just increased the charge for every service by 20 per cent and they wouldn’t have had any qualms about it, but I felt it was unfair. In the pre-pandemic world, people selected a salon based on the brand name, plush interiors, services offered, the efficiency of stylists, pricing, and distance. Now, the only criterion is safety protocols being followed and we did not want to compromise on that,” he says.
Braving the multiple odds during the pandemic encouraged the couple to reorganise their business strategies and set their priorities right. They introduced the door-to-door salon service. Online training sessions were offered to existing staff members, freelancers and freshers were provided a platform to build skills. Digital dashboards were created to monitor the performance of every salon on social media. Naturals will also be coming up with a product line that will be made available through an app. “I’m grateful to my franchise partners and landlords.
In situations like these, the customers, government, suppliers, each one is a stakeholder and we have to respect one another. Although I was disappointed that the government did not support us, I’m glad that the rest of us did our share. It was a humbling experience. We finally had the time to focus on our standard operation protocol to break-even in sales. By October, 65-70 per cent of our business picked up. We were able to retain the majority of our staff,” details Kumaravel.
The future
Kumaravel plans to open 3,000 franchises in the next couple of years. The digitisation process will begin and emphasis on product retailing will be strengthened. “Our competitors have become our collaborators. I want to make Naturals the number one salon chain in the world. That’s possible only if I’m good at everything and constantly updated. It’s also a dream to open a beauty and wellness academy, and create more employment. We’ve come a long way from being an unorganised sector to an organised sector. There’s still a long way to go and I believe that it’s in the hands of an entrepreneur,” assures Kumaravel.