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Case Study of Naturals

Only Buziness

Case Study of Naturals



Introduction

Naturals, India’s largest chain of beauty salons, has redefined the beauty and grooming industry. Starting as a single outlet in 2000, the brand has expanded to over 750+ salons across India. Its success story is a perfect blend of vision, innovation, and franchising excellence.

In this case study, we will explore how Naturals built a strong brand, disrupted the traditional salon industry, and became a household name.

1. The Beginning

Naturals was founded in 2000 by C. K. Kumaravel and Veena Kumaravel in Chennai. The idea stemmed from a simple realization:

  • At the time, branded and professional salons were rare in India.
  • The beauty industry was unorganized, with local barbershops dominating the market.
  • Women had very few high-quality and hygienic salon options.

With this insight, the Kumaravels decided to bring international salon standards to India while keeping prices affordable.

2. The Business Model

Unlike traditional salon owners who operate a few outlets, Naturals followed the franchise model from the start.

Why Franchising Worked for Naturals?

  • Scalability: Allowed them to expand rapidly without heavy investment.
  • Empowerment: Created opportunities for aspiring entrepreneurs, especially women.
  • Consistency: Maintained a standardized brand image and service quality.

Today, 90% of Naturals salons are franchise-owned, making it a pioneer of the franchise salon model in India.

3. Targeting the Right Audience

One of Naturals’ smartest strategies was empowering women through franchising.

  • The company encouraged housewives and first-time entrepreneurs to start their own salons.
  • Provided low-investment franchise options with business training and support.
  • Created a community of women-led businesses, making it a socially responsible brand.
  • Over 600+ women entrepreneurs have launched their own Naturals salons.
  • Helped women gain financial independence and business skills.

This unique approach set Naturals apart and strengthened its brand loyalty.

4. Branding and Positioning: From a Salon to a Lifestyle Choice

Naturals didn’t just sell beauty services – it sold confidence and self-care.

Key Branding Strategies:

Affordable luxury: Positioned itself between high-end salons and local parlors.
Celebrity endorsements: Used actors like Kareena Kapoor and Genelia D’Souza to gain credibility.
 Standardized experience: Ensured uniform service quality across all outlets.

By blending aspiration with affordability, Naturals attracted a wide customer base, from college students to working professionals.

5. Innovation and Expansion

The beauty industry is highly competitive, but Naturals stayed ahead through continuous innovation.

Key Expansion Strategies:

Tier 2 & Tier 3 City Expansion: Unlike competitors focused on metro cities, Naturals expanded to smaller towns, capturing untapped markets.

New Service Offerings: Introduced Naturals Lounge (luxury salons) and Naturals W (women-exclusive salons) to cater to diverse customer needs.

Partnerships: Collaborated with brands like Lakmé, L’Oréal, and Schwarzkopf to enhance service quality.

By constantly evolving, Naturals ensured that its brand remained fresh and relevant.

6. Digital Transformation

Naturals adapted quickly to the digital era by:

Launching an online booking system to improve customer convenience.

Leveraging social media to engage customers with beauty tips, offers, and influencer collaborations.

Expanding into e-commerce with beauty products, increasing revenue streams.

By integrating technology into beauty services, Naturals enhanced both customer experience and business efficiency.

7. Challenges and Competition

Like any business, Naturals faced challenges:

1. Competition from Organized Players

With brands like Lakmé Salon, Green Trends, and Jawed Habib expanding aggressively, the salon industry became highly competitive.

Solution: Naturals differentiated itself by focusing on franchising and tier 2/3 city expansion, where competitors were less active.

2. Maintaining Service Quality Across Hundreds of Salons

With over 750+ franchises, maintaining consistent service quality was tough.

Solution: Naturals implemented rigorous training programs and mystery audits to ensure high standards.

3. COVID-19 Impact on Salons

The pandemic led to temporary closures and revenue losses.

Solution: Naturals introduced home beauty services and adopted strict hygiene protocols, regaining customer trust post-pandemic.

At last after facing lots of challenges naturals has become no.1 player in hair and beauty salon India and generating of annual revenue -3.8 billion rupees 

Thank you 

Comment me, what's your opinion on naturals ?

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