Although an estimated 23% of the world’s population is Muslim, creating brands and marketing strategies that resonate among Muslims is tricky business. Living in more than 200 countries with a wide range of cultural traditions, ethnic backgrounds and standards of living, Muslims hardly constitute a homogenous single market.
Yet, as Paul Temporal points out in his book Islamic Branding and Marketing: Creating a Global Islamic Business, there are shared Islamic values that non-Muslim companies can tap into to reach Muslim consumers, and that Muslim companies can better leverage to go global. While few Muslim companies have built brands extending beyond their nation’s borders (and those few mostly in the oil and gas industry), Temporal offers international companies straightforward advice on integrating themselves into Muslim markets.
The demand for halal products and services (the word halal means “lawful”) is one commonality of Muslim life from Muslim-majority countries like Saudi Arabia and Indonesia to Muslim-minority countries like France, Germany and the U.S. “The term is most frequently linked to food that is permissible according to Islamic law, but in fact it applies to all categories of products and services used in Muslim life,” writes Temporal, who is an associate fellow at the Saïd Business School at the University of Oxford in the U.K. “Conforming strictly to Islamic law means that everything a Muslim does must be halal. In reality, however… there are different degrees of religiosity practised, from orthodox to liberal.” Halal products not only meet the requirements of Shariah law, which is drawn from a variety of sources including the Qur’an, they are also a mark of purity and quality. Interestingly, one study suggests that 16% of U.S. Muslims buy kosher food when they are not able to gain access to halal products.
Sectors where halal is especially important include food and beverage; education; tourism and hospitality; medical and pharmaceutical products and services; entertainment; financial products and services; cosmetics and personal care; and Internet and digital products and services. The Noor Global Brand Index, a 2010 study of consumer perceptions of halal status, ranks Europe-based brands like Lipton and Nestlé at the top, showing that country of origin matters less than a well-executed commitment to halal principles.
Globalization and rising incomes in many emerging economies have, perhaps unexpectedly, made halal increasingly important to Muslim identity. In a case study of OnePure, a cosmetics company founded in 2007 by Canadian-born Muslim Layla Mandi, the marketing strategy targets affluent Muslim women who appreciate global brands like Clinique, Lancôme and Chanel, but see an added value in halal-certified products. Designed and formulated in Canada, OnePure uses financial products and services from Emirates Islamic Bank (which follow Shariah principles, including not charging interest), sources halal raw materials, ensures products don’t come in contact with non-halal products or processes, such as machinery cleaned with substances containing alcohol, uses halal-compliant transportation and storage throughout its supply chain and ensures that its female sales personnel wear abayas, loose dresses meant to protect their modesty.
“This enterprise shows that, with determination, Islamic brands can penetrate every market and attract non-Muslim consumers as well—for example, people who are interested in organic, eco-friendly, ethical and authentic beauty products,” writes Temporal.
Attaining halal accreditation is not straightforward, since different regions, countries and communities have different standards. Brunei Darussalam, a Muslim country with a population of about 381,000, is trying to overcome these hurdles to become a major player in the global halal industry. In 2009, the government launched the Brunei Halal Brand which, although not necessarily universally accepted, sets a high benchmark for its certification processes. “Having obtained certification in Brunei, products can generally be expected to pass audits undertaken by other countries,” writes Temporal.
Reaching Muslim women remains a challenge. Tougher still is reaching Muslims in emerging markets in regions such as North Africa, sub-Saharan Africa, the Mideast and Asia-Pacific, though increased penetration of mobile communication technology is making that easier.
“The use of digital channels by brands also allows marketers to carefully target Muslim consumers without over-using their ‘religious’ identity to attract their attention,” writes Temporal.
At the top end of the market, increasing incomes in countries such as Malaysia, India and Indonesia mean an appetite for luxury products. Closer to home, the number of Muslims in Canada are expected to nearly triple in the next 20 years, from about 940,000 in 2010 to nearly 2.7 million in 2030. Unlike Muslim minorities in much of Western Europe, who tend to be much poorer than average, North American Muslims are more likely to have incomes comparable to their non-Muslim peers.
“However one slices and dices the numbers, there is no escaping the fact that the Muslim population is not only huge, it is growing,” writes Temporal.
