Heiki Kanne is a visionary leader in the beauty industry and the driving force behind Aesti Skincare OÜ. Recognized as one of the most influential leaders in the beauty industry, he has transformed skincare with innovative products and a commitment to sustainability, setting new standards for excellence in the field. The Tycoon Magazine had a great interview with Heiki, who shared his business journey and what makes Aesti stand out in the industry.
Can you provide a concise overview of your professional journey and the genesis of Aesti?
I was born and raised in Tallinn, Estonia’s capital, where I enjoyed a cheerful childhood filled with studies, sports, and family events. My mother has been a pivotal figure in my journey; her hard work, achievements at work and guiding me have greatly influenced my path. Plus, my education at Tallinn English College opened the door to the international world and prepared me for life’s uncertainties. It was during high school that I first developed an interest in entrepreneurship, discovering a natural inclination to combine ideas and create new value.
As I entered university, my interest in entrepreneurship grew, though I was unsure of the direction to take. I attended four universities, studying International Relations and Business while exploring courses that caught my interest. During this time, I also excelled in tennis, teaching lessons and organizing competitions, inspired by legends like Roger Federer and Rafael Nadal.
My first significant job was managing a sports equipment store, where I built a team to optimize operations. I later worked as a project manager in a real estate company during Estonia’s property boom from 2005 to 2008, gaining valuable project management skills. I also participated in various entrepreneurship seminars, broadening my knowledge in areas like financial analysis and product development.
In 2007, my sister faced hair loss, and the treatments she received in Estonia weren’t effective. She discovered a Finnish methodology that successfully addressed her scalp issues, primarily using peat for deep cleansing. This prompted discussions in our family about why Estonian peat wasn’t utilized for skincare.
In 2009, I began researching the potential of Estonian peat for beauty products, quickly realizing that no one had explored its cosmetic applications in depth. After gathering research and collaborating with the University of Tartu and Tallinn University of Technology, we learned how peat could alleviate various conditions. We developed a filtering technology that produced pure, organic, and stable peat, suitable for cosmetic use.
By 2014, we had enough material and feedback to launch our company and brand, AESTI. The name, inspired by the Roman historian Tacitus, represents the ancient roots of Estonians. That same year, we partnered with Chemi-Pharm AS to produce our first peat shampoo, which won two beauty awards in Estonia. To date, we have developed 33 peat-based beauty products available in various countries, including Estonia, Finland, and India.
My journey from a joyful childhood in Tallinn to a diverse professional career reflects growth, learning, and inspiration. The blend of family values, varied education, and professional experiences has created a narrative rich in potential. I am excited to continue writing the story of Aesti and see what the future holds.
What were the primary challenges encountered during Aesti’s inception, and how were they overcome?
In the early years, Aesti faced challenges due to limited information on peat’s uses and benefits, requiring extensive testing to understand its effects on human skin. Each positive result fueled our determination, confirming that we had discovered an exciting raw material for the beauty industry. The peat in our products is 10,000 years old, and while we found scattered insights about its properties, comprehensive research was lacking.
Through continuous research and development, we refined our products to maximize peat’s benefits, establishing Aesti as a trusted name in the beauty industry. We take pride in offering natural solutions that enhance beauty and promote skin health. In addition to scientific hurdles, we had to educate consumers about peat’s unique advantages, which involved significant marketing efforts. The positive feedback from our customers and the visible improvements in their skin health motivate us to explore peat’s full potential. Hence, our vision is to lead in sustainable beauty, committing to ongoing research to unlock even more benefits from this ancient resource.
Could you elaborate on Aesti’s unique offerings and how it differentiates itself within the competitive beauty market?
Aesti is a unique player in the beauty industry, renowned for its innovative use of peat, a natural resource cultivated over 10,000 years. We proudly assert that Estonia has the world’s finest peat, backed by the World Health Organization’s findings on the country’s clean air quality. The decomposition of plants over millennia has created a rich and bioactive composition in Estonian peat.
Peat offers exceptional deep-cleansing properties, effectively addressing skin issues like psoriasis, dermatitis, eczema, and acne, unlike many products that rely on a mix of synthetic components. Currently, Aesti offers 33 products, with an equal number in development, including facial, hair, body care, and specialized treatments. Our peat face mask is particularly popular, rejuvenating and refreshing the skin with noticeable results.
Our hair care products promote scalp health and address various scalp conditions, nourishing hair from the roots with minerals and humic acids. Peat stands out by providing multiple skin benefits on its own, including cleansing, refreshing, and anti-aging effects.
Aesti has won 10 beauty awards in Estonia from 2015 to 2024, averaging one per year. We received a very good credit rating (AA) from Creditinfo in 2022 and 2023 and were recognized as a TRUSTWORTHY COMPANY by Äripäev in 2024. Our products are made with 96% to 100% natural components and are produced using 100% green energy.
What strategic approaches have you implemented to ensure Aesti’s continued success and market leadership?
To succeed in a competitive market, Aesti has implemented several key strategies. Our focus is on partnering with distributors eager to differentiate themselves by offering our unique product range made entirely from peat, which has excellent skin benefits. The dark color of our products adds to their market distinction. We maximize peat’s beneficial properties while ensuring our products are as natural as possible using current technology and produced through sustainable practices.
We actively seek consumer and distributor feedback to enhance our products and foster loyalty. By listening to our customers, we meet their expectations and cater to diverse preferences, focusing on natural ingredients and effective properties. Effective marketing and sales strategies are essential for our success. We identify and collaborate with distributors who share our values and enthusiasm for our products. Building strong relationships ensures our products are well-represented and marketed effectively.
Education about peat’s benefits and our sustainability efforts is a key part of our strategy. We use social media, our website, and in-store promotions to engage with customers and provide valuable content, fostering a sense of community around our brand. Consistency in branding is vital for a strong identity. We ensure that all marketing materials, packaging, and communications reflect our brand values. Storytelling helps connect emotionally with customers, deepening their loyalty.
To reward our loyal customers, we have loyalty programs offering discounts, exclusive offers, and early access to new products. This recognition encourages repeat purchases and strengthens relationships.
Please highlight some of the key milestones and accomplishments achieved by Aesti under your leadership.
Achieving our current position is a significant milestone for us. We have grown from nothing to being internationally recognized, with consistent sales in foreign markets and numerous international awards to our name. However, we see this as just the beginning and are excited about what the future holds.
Launching a new product in such a competitive market requires immense faith and a touch of boldness. It demands persistence, learning from our mistakes, and maintaining motivation. As the world changes, we must be analytical to avoid wasting resources and find cost-effective strategies. Remarkably, we achieved our first profit only in our eighth year of operation.
Under my leadership, Aesti has made significant strides. We have introduced innovative products using Estonian peat, earning multiple beauty awards from respected local magazines like Anne & Stiil and Iluguru. Our products are now exported to various countries, including Japan, India, the USA, the UK, and most EU nations through Amazon.
The Aesti team continues to innovate and expand, driven by our commitment to creating high-quality, natural skincare products that benefit both our customers and the environment.
How has Aesti adapted to the evolving landscape of consumer behavior and preferences in the beauty industry?
Purchasing habits are changing significantly, with a rise in social media and online sales. Video product launches and influencer marketing are becoming more common, though the impact of AI on these trends remains uncertain. Despite this shift, many consumers still prefer traditional shopping, wanting to physically interact with products before buying. Aesti recognizes the importance of standing out on store shelves.
Aesti has successfully sold products on Amazon for years, with 86% of users giving 4 or 5-star ratings, attracting new customers. In Japan and India, Aesti uses more traditional sales methods, like selling through beauty salons where customers can experience peat treatments. Customer service representatives act as product advisors, enhancing familiarity with the products.
There is also a growing focus on sustainability, with consumers seeking eco-friendly products and transparent ingredient lists. Aesti has adapted by ensuring their products meet these criteria, building trust and loyalty among customers. The trend toward informed consumers has led Aesti to provide detailed information about their products online, including ingredient lists and usage instructions.
Overall, each country has a unique selling approach shaped by cultural habits. By collaborating with local partners, Aesti aims to help customers become familiar with their products. Staying adaptable to these trends allows my company to thrive in a competitive market.
What are your strategic objectives for Aesti’s future growth and expansion?
Currently, we offer our products online through Amazon in the USA, selected EU countries, the UK, and Walmart’s online store in the USA. In traditional retail, you can find our products on shelves in Japan, India, and especially at Rossmann stores throughout Poland, which has been a significant growth area for us.
Our participation in the 2024 Cosmoprof in Bologna was highly successful, resulting in 174 contacts from 53 countries. In the near future, we plan to enhance our presence in existing markets by providing a more tailored product selection for each country and collaborating with the contacts we made at Cosmoprof.
Our long-term goal is to expand our global distribution network. Customer feedback has been overwhelmingly positive, and we believe that natural cosmetics with effective properties are in demand worldwide. We are dedicated to making our products accessible everywhere, ensuring that everyone can enjoy our high-quality skincare solutions.
We are also committed to continuous innovation and improvement in our product line to meet the changing needs of our customers. By investing in research and development, we aim to stay at the forefront of the natural skincare industry, exceeding customer expectations.
If anyone reading this article believes our products would complement their portfolio, we would love to discuss potential collaboration opportunities. We are always eager to explore new partnerships that align with our vision and values.
What essential qualities do you believe are indispensable for entrepreneurs in the beauty industry, and what advice would you offer to aspiring entrepreneurs in this field?
After 25 years of playing tennis, I have found that the principles of sports apply well to entrepreneurship: create a solid plan, work consistently, adapt when needed, and surround yourself with supportive people. For aspiring beauty industry entrepreneurs, focus on developing effective, beneficial, and eco-friendly products. Understand your customers’ preferred channels for information and engage with them there.
Stay informed about the latest trends by attending conferences, participating in workshops, and networking with professionals. Building a strong brand identity and being transparent about ingredients helps establish trust and loyalty with customers. Lastly, prioritize feedback by regularly seeking input from customers to refine your offerings and demonstrate your commitment to meeting their needs.
Could you share some valuable beauty or wellness tips with our readers?
Aesti Peat Water Mist: Keep a spray bottle of peat water in your bag. Use it throughout the day to refresh your skin and set your makeup. This product makes miracles on your skin. Japanese love it.
Peat Face Mask: Apply raw peat to the face and leave it on for 15-20 minutes. Peat is a natural humectant and antibacterial, making it perfectly moisturizing, refreshing and restoring the natural complexion of the facial skin in a 100% natural way. The best you can offer your facial area once or twice a week.
Scalp Care: A healthy scalp is the foundation of healthy hair. Use Aesti Deep Cleansing Shampoo once or twice a week to remove the week’s build-up from possible air pollution and other non-natural hair care products to maintain a clean, balanced scalp.
Digital Detox Before Bed: Give your mind a break from screens at least an hour before bedtime. This helps improve sleep quality, which is essential for overall wellness and radiant skin.
Mindful Skincare Routine: Turn your skincare routine into a mindfulness practice. As you apply each product, take a moment to breathe deeply and appreciate the process. This not only benefits your skin but also reduces stress.
Social Connections: Make time to connect with friends and family. Strong social connections are important for emotional well-being and can provide support during challenging times.
Please provide a one-line quote that best encapsulates your approach to business and your vision for Aesti Skincare.
“Where there is a will, there is a way”.
Contact Details:
Heiki Kanne
CEO
Aesti Skincare OÜ
heiki@aesti.ee
WhatsApp: Heiki Kanne, +372 56 908 556
LinkedIN: Heiki Kanne