Ogilvy Noor celebrates massive Muslim market

Dianne Bayley

08 June 2010

According to a recent CNN report, Ogilvy & Mather has launched a global branding practice specialising in Islamic branding and the conforming of brands to the precepts of Islamic Shariah. Ogilvy Noor will be led by branding exerts based in "key Muslim markets" in Asia, the Middle East, North Africa and London.

Launched to offer practical advice on how to build brands compliant with Shariah principles, the group says the Muslim consumer market - comprising some 1.8 billion people - is the next important and "largely untapped" opportunity, adding that the Halal market is worth a $2.1 trillion a year and is set to grow to $500 billion annually.

According to www.islamicpopulation.com, the total Muslim population in 2009 was 1.66  billion, far greater than often quoted 1.2 or 1.3 billion. In Britain, this sector grew 10 times faster than the rest of society - from 500,000 to 2.4 million in just four years - according to research by the Office for National Statistics. Interestingly, the number of Christians in Britain fell by more than 2 million in the same time period.

Ogilvy & Mather's survey "Brands, Islam and the New Muslim Consumer" served as the launching pad for its new division. It debunks stereotypes surrounding Muslim consumer attitudes while highlighting the fact that Halal labels - still important to show certification - are no longer enough to persuade the New Muslim Consumer that the company behind the brand conducts business in line with Islamic values.

The survey, conducted with TNS Research Surveys, ran across Malaysia, Egypt, Pakistan, and Saudi Arabia, the four culturally distinct majority Muslim markets that Ogilvy believes represent four key stages in the level of consumer development.

Burgeoning market

It's a market too big to ignore and more and more banks are realising its benefits, with experts suggesting that the Islamic banking sector will also gain business from non-Muslim customers who believe that an under-regulated global banking industry helped to precipitate the global financial crisis.

Shariah-compliant investment does not allow speculative activities such as hedging and derivatives, and therefore may be seen as a "safer bet". Halal Journal says there is also evidence to suggest Islamic banks have been less severely affected by the economic downturn than other financial institutions, partly because they invest only in assets and not debt, a fact which allowed them to escape the direct impact of the US housing crash.

As an estimated 23% of the world's population, marketing to the Muslim community is good business - but it isn't something that can be undertaken by "window dressing". Expert advice is required, which may be exactly what will put Ogilvy Noor on the map.

For Muslims, Islam is a "way of life" grounded in aspects of modesty, justice, and religious practices, that creates a unique set of product and services needs. These include Halal food, restaurants, modest clothing, Islamic media, travel services, entertainment and recreation. Global brands that adhere to the principles of Islam are well placed to meet these needs and create more opportunities in this sector as the growth in Muslim identity continues.

Here's a fact that has global marketers taking notice: The global Halal market value for trade in Halal foods is estimated at US$547 billion a year. European Supermarket giants Carrefour and Auchan aggressively pursue Halal food retailing; and exporting countries including Australia and New Zealand have stepped up their diplomatic and marketing efforts to increase their share of the market: New Zealand Lamb exports account for 40% of the world market and 95% of all New Zealand lamb exports are now Halal, while non-Halal production is being phased out.

Key to this sector, however, is understanding that full Sharia compliance means that production and logistics are also compliant; that the business is financed with permissible funds; and that safety and hygiene meet religious standards.

The interesting thing for manufacturers and marketers to consider is that non-Muslim consumers often embrace the standards set by Halal and Haram requirements, broadening their appeal.