DinarStandard Editors

Where are the "Muslim" Brands? - BrandChannel.com

BrandChannel.com (produced by Interbrand - a global brand consultancy that also produces the BusinessWeek list of Top 100 Global Brands)  recently did an article on "Muslim" brands to which I contributed some point of views. 

Key points discussed in the article were around the distinction between brands that serve a global need and brands that serve unique "Muslim" needs.  The question about which brands from the Muslim world have the best option to go global was also brought up.    My view and that of some others was that - to be global, the brand has to have a global appeal and utility.   

It was also noted that Fast-moving consumer goods have the best possibility to become global brands.  This is true if you look at the Global Top 100 or the Leading Brands of the DS100 companies.

Some of the most prominent brands from the Muslim world are hence consumer products/ services that have a global appeal.  Which are some of the brands you think will first break into the Global Top 100? 

US Muslims Disposable Income Estimated at $170 billion: Report

Muslims have been in the United States for a long time but their recognition as part of the fabric of American society has been a frequent topic of discussion - especially after the tragedies of 9/11.  Issues of identity and belonging were probed and questions of whether Muslims could ever fit in to American society dominated debate.  But a recent NY Times article indicates that this is about to change - at least from business' point of view.   

Companies are now realizing that the Muslim market in the US alone has a combined disposable income well in excess of $170 billion a year.  On the basis of trade and profit, business and commerce have long contributed to intercultural understanding.  Today companies like McDonald’s, Walgreens, and Ikea (specifically their locations in the Detroit area) are learning to cater to their Muslim customers.  Picking up on the needs of American Muslim customers the marketing firm JWT recently concluded a survey of American Muslims and plans to encourage clients like Johnson & Johnson and Unilever to market to American Muslims. 

To illustrate how this recognition of the American Muslim market segment is part of a larger trend Marian Salzman, executive vice president and chief marketing officer of JWT, pointed to ads in the 1960s that featured Jewish products like Levy’s rye bread, which, she said, helped bring Jews in the US into mainstream advertising. 

Challenges for marketers will determine the level and sophistication of their understanding.  Addressing the various cultural groups of the American Muslim segment as well will remain a challenge along with the area of Halal standards but the news is certainly encouraging.  DinarStandard pointed to the emergence of the Muslim Lifestyle Market™ in a January 2005 article.  We look forward to following the continuing recognition and development of the Muslim Lifestyle Market™ globally. 

Muslim Identity on the Rise

Last month the Pew Global Attitudes Project, which conducts worldwide public opinion surveys, released findings of a study on Muslims’ attitudes towards their Islamic and national identities.

The poll which was conducted in 13 countries showed that among the Muslim population in Europe, a majority of British (81%), German (66%), and Spanish (69%) Muslims surveyed considered themselves Muslims first.  The same was true in Muslim majority countries of Pakistan (87%), Jordan (67%), Egypt (59%), and Turkey (51%).  Accross all countries surveyed ,the majority suggested that Muslim identity among Muslims is getting stronger.  Also, most of the Muslim population considered this growth to be a good thing and were in support of minimizing extremism.

A key implication of the above trend is on the growth of the 'halal' market – or as Dinar Standard refers to it: the “Muslim Lifestyle Market (tm)”.  This market, which covers Islamic Finance, halal food, modest clothing, muslim media etc. is already showing promising growth signs globally.  The study certainly bolsters the future growth opportunities for key players within this market.

Live Blog: World Halal Forum - Final Day

Wednesday, May 10, 2006 – 11:00 PM in Kuala Lumpur

The close of the World Halal Forum

The second and final day of the World halal Forum focused on the technical aspects of slaughtering, halal ingredients, food transport, and logistics with presentations by industry participants including the Sr. Business Development Manager of the Port of Rotterdam, Capt. Kees Weststrate.  The Port is in the process of developing a dedicated Halal processing zone aiming to be the Halal gateway for continental Europe.

The Forum later closed by passing resolutions dedicating efforts to further develop widely acceptable standards.  These efforts will center on the involvement of industry players who currently produce for the halal market.  The resolutions will create a benchmark for the progress of the industry to be measured at the 2007 World Halal Forum.  Look for an update on this later after I visit the Department of Standards Malaysia and the Department of Islamic Development Malaysia (JAKIM) today.  JAKIM is the sole authority on halal certification in Malaysia.

MIHAS Opens

The Malaysian International Halal Showcase (MIHAS) opened today with remarks by the Deputy Prime Minister of Malaysia. The tradeshow is the 3rd in a series of now annual events with which Malaysia
is bidding to become a leader in the global halal market.  Overall MIHAS has facilitated the arrival of 200 international buyers from almost 30 countries.  One of the main organizers of the event, the Malaysian External Trade Development Corporation, aims to organize up to 4000 business meetings between suppliers and buyers.  The exhibition hall smelled of pungent snacks, sauces, candies, cold cuts, and a host of other products – all carefully selected for their established quality and global ambition.

Live Blog: World Halal Forum - Day 3

Tuesday, May 9, 2006 – 2:00 PM in Kuala Lumpur

From flour and animal feed producers to butchers and bankers they are all here to meet, exchange views, and collaborate in the development of the global halal marketplace.  This is indeed an historic event in the consolidation of an idea long under represented in world wide business circles. 

This morning's sessions focused on the developing confluence between Islamic finance and the Halal industry. 

We heard from Ms. Juma'atun Azmi, Managing Director of KesehDia (in picture left), who spoke about the development of the full spectrum of the halal services value chain and the natural synergies which both Islamic finance and the Halal industry share.  The development of this service chain will be dictated by the core markets in the Middle East, Asia and SE Asia but also by increasingly influential markets in countries with sizeable and powerful Muslim minorities.  Ms. Azmi's comments were backed by solid market research of more than 2 years.  But her most telling remarks delivered a clear take away message...  That the development of the halal industry is based simply on three things—having a good product, proper certification, and solid marketing.  More later InshaAllah...

Tuesday, May 9, 2006 – 10:00 PM in Kuala Lumpur

I returned to the hotel with my media colleagues earlier this evening - shortly before sunset.  It was a day full of interesting discussion about the direction and expansion of the halal industry.  What arose as a major topic was the issue of standardization.  The halal industry has for some time contended with differing interpretations of halal.  When it comes to meat - what type of cut is necessary, can you stun an animal, does an animal have to be fed with halal feed?  What to say of other products like oils or dairy products. 

These are questions that still linger and there were many prominent calls for a global standard.  One delegate however put it this way, "Muslims should apply the same methods they use to arrive at consensus when they sight the moon for Ramadan and the Eids."  This may have been nothing more than a nicely worded statement that said, "Muslims will never agree to a global halal standard."

Update on my luggage… I have to wait another day... %&#*&@#!  I won't mention the airline that’s responsible for this.  The interesting thing is how I've been looking for sympathy from random people.  I went across the street to pick up some more duds for tomorrow and I found myself telling the salesman about my predicament.  All I got in return is a semi-confused look that said varyingly, "So what?!", "Too bad", or "I have no idea what you're saying".  So the lesson to me is I should be patient... after all "God is with the patient." (Q 2:153)

Signing off for today...

Live Blog: World Halal Forum - Day 2

Tuesday, May 8, 2006 – 11:30 PM in Kuala Lumpur

My first day in Malaysia was a memorable one for many reasons – mostly good and one bad.  First the good reasons - KL is a beautiful city and its people are kind and helpful – and they know how to do business.  I returned a short while ago from the gala dinner held to open the World Halal Forum.  It was addressed by Prime Minister Abdullah Badawi and Mr. Khairy Jamaluddin, the Chairman of the World Halal Forum.  The entire event was extremely well organized.  Industry heavyweights from all over the world, trade officials, and media (that’s DinarStandard) mingled while an assortment of booths displayed their offerings.  These included CIMB Islamic, the major Islamic financial institution, and Nestle who were handing out their goodies to dinner invitees.   

What the dinner did most importantly was set the tone for the entire week of events.  The World Halal Forum is marketing “halal” in a big, “in your face” way.  Some quotes from the opening video presentation – “Halal is a centuries old concept”… “Halal is a way of life”… “Its quality standards attract Muslims and non-Muslims”.  The event said Halal is no longer just a niche market.  It is here to stay and you can all (Muslims and non-Muslims) make money serving this growing, global market.  This is going to be an exciting conference!!!

And now for the bad news – now don’t laugh.  Basically, my luggage was lost in transit in Sweden.  Ugh!!!...  I was informed this afternoon that they’ve located it and it should reach KL tomorrow late afternoon sometime.  Let’s all hope and pray this is the case.  I’ve already gone out and bought replacement clothes to take me through the next day or so.  Sorry… some last bad news… my luggage has the charger for my camera.  So any pictures I did take today… I can’t post them on the blog.  These things happen unfortunately…

Stay tuned for more from KL…

Live Blog: World Halal Forum - Day 1

May 6, 2006 at 5pm - New York

This evening I depart New York bound for Kuala Lumpur to attend the first ever industry trade event dedicated to the promotion of the global halal industry.  The World Halal Forum will take place from May 8 - 10 with the aim to:

1. Develop the Global Halal Market
2. Understand and solve challenges faced by the Halal food industry
3. Address the need for industry standards for Halal on a global scale
4. Create a networking event to facilitate trade between players in the Global Halal Market

These are indeed worthy goals.  For the uninformed they might seem nothing short of unrealistic.  But for an industry that can claim a market of over 1.2 billion and now commands the attention of major international journals such as the Wall Street Journal (May 5th article entitled “Halal Meets Kosher In Health-Food Aisle”) these goals are real! 

The forum promises to set global benchmarks for the industry and galvanise efforts to promote it worldwide.  These are objectives which DinarStandard wholeheartedly supports and we look forward to reporting on the event. 

On a personal note I'm excited to visit Malaysia - one of the most dynamic economies of the Muslim World.  As Ziauddin Sardar has recently written in the New Statesman, "Malaysians are nothing if not far-sighted."  His article highlighted an interesting facet of their bid to send a man to outer space.  They are also bidding to be a leading hub for the global halal market in the years to come.  Their planning should be in evidence at the 3rd Malaysia International Halal Showcase which the Malaysian government is hosting from May 10 – 14, 2006 in conjunction with the World Halal Forum.  It should be interesting to see some of this foresight in action at the conference which will showcase Halal products and food from the world over.

Keep visiting this blog this week for regular updates from the Kuala Lumpur and the World Halal Forum. 

Regards, Sajjad Chowdhry, Associate Editor