Article in The Halal Journal for the 2012 World Halal Forum

1. A lot has been written and will continue to be written about the business Words by
opportunities within the Muslim community – which today stands Joy Abdullah
close to 1.6 billion, making 23 per cent of the global population.
‘Halal & SHARI’AH Compliance’
A Process?
T
his consumer system presented by the
segment has commercial enterprises.
shown an
ever-increasing A great deal of consumer
attractiveness and industry research
to businesses, especially has been done, by
through the Halal and highly experienced and
Islamic Finance sectors.
E’S EFFORT
professional organisations,
With the industry’s global covering specific areas of
annual summit coming information that’s extremely
up in Kuala Lumpur in helpful in business planning.
ON
April, businesses will be Yet, on the ground, activities
pied BY
able to see firsthand the by Halal and Islamic
opportunities available. Finance organisations still
co
The big question for demonstrate a high extent
NG
business working in and of “head-in-the-clouds”
BE
looking to get a foothold style of business approach.
THE DEEN IS
in the Halal and Shari’ah- In essence, this disregard
related industry is: Do of the consumer element
you understand who within these industries will
your customers are be at their own peril.
and what they want? The consumer world
This invariably ties in has changed and even
with a discussion I had more-so the Muslim
with a friend in the Islamic
or a Value?
consumer world, which
Finance industry: ‘Is Halal illustrates a new kind of
and Shari’ah a process or consumer, who many
are they value concepts?’ have called the ‘futurist’.
Whilst the (current) This ‘futurist’ is acutely
issue of convergence (of aware of what he or she
the Islamic Finance and wants and how you as a
Halal industries) and its business must engage him
potential or even explosive or her. Do not think you
growth and emergence
UE
of new product and
AL
service segments (fashion,
V
The consumer
- A
cosmetics, hospitality) are
L FORM
being thrashed out, the
key issues of the day are:
world has
changed and
INA
• Consumer intelligence
even more-so
IG
(i.e. insight for business
OR
growth planning); the Muslim
I TS
• Comprehension (i.e.
consumer world,
IN
understanding of the two
THE DEEN
terms Halal and Shari’ah which illustrates
by the consumer); and a new kind of
• Knowledge of (what) the
latent emotional need
consumer, who
(of the consumer) means many have called
with regards to a value the ‘futurist’.
The Halal Journal | World Halal Forum 2012 Special Edition | 40 www.halaljournal.com
Feature.indd 40 3/26/12 4:53:13 PM

2. can fob the ‘futurist’ off
with a few buzz words
or empty rhetoric.
As part of the ever-
winning formula that works
cross-borders and builds
the business year-on-year.
Recently the Swiss
View understanding is what
brings the consumer
closer to the product or
services. And this is what
growing and maturing
global Muslim community
banking group, Bank
Sarasin, released a
If we take the the Halal and Shari’ah-
compliant industries
(as the mainstay for both Wealth Management view point that need to do better in.
Halal and Islamic Finance) Report on the increased Muslims want Going back to my
the ‘futurist’ has shown a value of converting a to see a Halal point, this cannot be done
paradigm shift in attitude,
perception and behaviour.
conventional business
into a Shari’ah-compliant
and Islamic through a ‘head-in-the-
clouds’ attitude – in other
It is time we actually entity. The report, which Finance industry words, throwing pieces in
listen and take on board was initiated through attractive to both the air to see where they
what this consumer base a consumer question, Muslims and land will not bring about
– of Halal and Islamic found there was little Consumer intelligence,
Finance products and information out there for
non-Muslims, Comprehension and
services – is saying. This people and from a business then one has to Knowledge of the Halal
would help in identifying perspective, Shari’ah- look at how that and Shari’ah industries.
what the value benefits
(of Halal and Shari’ah)
compliance boost business
by 18 to 25 per cent.
industry is being Is this business Utopia?
The simple answer is No.
are and how commercial If this isn’t enough, it is publicised and This is just effortless
businesses can use this vital to note that the Muslim how it is viewed. and logical planning,
knowledge to develop numbers in India and which comes from being
their business strategies. China are larger than the consumer-centric. It
The starting point is population of some other utilises the knowledge
for the two sectors to get countries. An estimated gained from understanding
consumer-centric and combined population of N the consumer and in
undertake market education 180 million – how can this delivering value benefits
and research analysis on the demographic be ignored or to the community (or the
two basic terms – Halal and worse still not engaged? W E environment in which
Shari’ah compliant. Then Businesses cannot the business operates).
they must establish the afford to overlook the S The question to ask
t
value benefits of the two. Muslim segment, but on is: would businesses, in
in
issing the po
Halal and Shari’ah the contrary engage this both Halal and the Islamic
compliance is seen to segment through accurate, Finance industry, actually
be ‘must-have’ supports identifiable and clever re-build a better business
(for the product or marketing. If we take the model and approach
service) and not, in view point that Muslims from doing this?
ry m
itself a differentiator. want to see a Halal and To answer it,
ust
With this in mind, we Islamic Finance industry organisations would need
ind
must develop business attractive to both Muslims to undergo a cultural
An
strategies that enable the and non-Muslims, then shift in terms of the
community (in which one has to look at how way business is done
the business transacts) to that industry is being today. A shift away from
grow. Without the planned publicised and how stakeholder profitability to
growth of the community it is viewed. community value creation
no commercial business Let’s take a consumer, based on the ethical
can survive for long in who loves pizza. A values embodied within
today’s climate of the mainstream company like Shari’ah and to focus on
discerning and connected Dominoes has gone out of being consumer-centric
consumer. Take the strategy its way to engage consumers in order to be sustainably
to the masses, through through digital marketing, competitive over time.
social media, and drum apps and creating a strong
up high awareness of product desire by involving
the commercial purpose the consumer in feeling About the Author: Joy Abdullah is a strategic management
professional, specialising in cross-industry strategic planning.
of the businesses and and believing he or she Currently he is Head of Marketing and Communication
clearly show how it aids is a part of the process at INCEIF- The Global Islamic Finance University.
the community. Add to that makes Dominoes *The views expressed in this article are those of the author and do not
the mix a strong quality good at what it does. necessarily represent the views of, and should not be attributed to INCEIF.
control on products (and This concept of creating **Opinions expressed by contributing writers do not
services) and you have a a connection and knowledge necessarily reflect the views of The Halal Journal.
www.halaljournal.com The Halal Journal | World Halal Forum 2012 Special Edition | 41
Feature.indd 41 3/26/12 4:53:18 PM