Studies from the past few years suggest American Muslim’s have an annual spending power of $124-$200 billion just in the U.S. alone. This is similar to the Hispanic market in the early 90s, which today is worth a whopping $1.2 trillion (a punch in the face for any company who ignored it then)

86% of American Muslim Consumers believe that American Companies “need to make more of an effort to understand Muslim values” but at exactly the same time they are feeling largely ignored by American brands.

ISLAMIC BANKING AND FINANCE

Highlights

Source: Standard and Poors

Incorporates Sharia Principles in the functioning of the bonds

Significant growth post 2004

Booming industry currently valued at $1 Trillion

Accounts for just 1% in value of the total Financial Services market but has generated interest from all major banks.

Recently, the pope has endorsed the principles of Islamic Banking and Finance and the Vatican paper wrote that banks should look at the rules of Islamic finance to restore confidence amongst their clients at a time of global economic crisis.

First Islamic Stock Trading platform will commence in London, May 2010 , with the aim of providing a podium to strengthen sharia-amenable companies

Constant demand from Muslims who prefer their banking and finance to be Shariah compliant

98% feel that “American brands don’t actively reach out to Muslim consumers”.

“This despite these consumers showing the potential to be an extremely loyal customer base, with over 80% saying that they would prefer to buy brands that support Muslim identity through promotion and celebration of religious festivals, for example.

As bespoke Islamic Branding practice, Layla Mandi offering expert practical advice on how to build brands that appeal to Muslim consumers.

In 90% of Muslims say that their faith affects their consumption.This holds true whether in majority or minority Muslim populations.

In an economic model where products and communications are increasingly sophisticated in targeting consumer needs, Muslims are rightly expectant that their own consumer needs should be met on the high street and online, and that brands will address their consumption requirements.

For brands this can mean anything from a simple acknowledgement that Muslim consumers exist, through to tailored communications, special brands and even innovative products.

Layla’s advice to businesses when developing offerings for Muslim consumers is to find the approach that is right for your brand, and will make sense to the Muslim consumers. For this, businesses need to avoid stereotypical assumptions about Muslim consumers and access the right expertise.

While China and India have captured the world’s attention, the Muslim segment re­mains a quiet but enormous untapped con­sumer market. There are about 1.8 billion Mus­lims around the world and we call this “the third one billion” opportunity. Almost one in four of the world’s population is Muslim, and this number is expected to grow by a signifi­cant 35 per cent to 2.2 billion in 2030.

A stroll into some well known supermarket names during the month of Ramadan is an experience that Muslim consumers describe with delight. They love the Ramadan signage and the special offers, but what creates brand loyalty is the very fact that they are recognized by the business as valued consumers. But this novelty will soon wear off and brands must up the ante in branding, innovation, communications and engagement.

Despite being receptive to brand engagement, Muslim consumers rightly complain that brands seek to pass off poor quality products in a bid to win their business. Or that innovation is poorly implemented. Or that communications and customer service are clunky and insensitive.

Nobody knows how much of the Muslim world’s spending will become halal, but a report to be released next week by Thomson Reuters and DinarStandard, a New York advisery firm that focuses on emerging Muslim markets, estimates Muslim consumer spending on food and lifestyles totalled $1.62 trillion in 2012.

“The real development that is happening now, and which is the big opportunity, is that halal is now a lifestyle segment,” said Rafi-uddin Shikoh, chief executive of DinarStandard.

One of the largest tourism consumer segment in the world are Muslims whose tourism expenditure collectively is larger than the largest spending tourist source market in the world – Germany – and almost twice that of China’s. With unique needs that appeal to a wider global ‘family-friendly’ tourism market, this growing segment is one of the most exciting new areas of growth for the Industry.

Talk of Muslim consumers naturally throws up the word ‘halal’, which simply means ‘permitted’. And in common parlance, halal is used to refer to meat and food products. But Muslim shoppers are interested in more than just food. From the smallest to the most global of brands, there is an opportunity to tailor an offering for a young, brand conscious, well-connected and increasingly affluent consumer segment.

THE HALAL FOOD INDUSTRY

Education and awareness about halal certification

Accessibility to Halal Food and Halal Restaurants

Communication of availability of Halal food

Hurdles have been overcome Billion

Booming industry currently valued at $661.25 Billion

Multinational corporations like Nestle took notice ,invested and voluntarily requested for Halal Certification for 80% of their food production facilities.

KFC has introduced 80 Halal outlets in the uk based on feedback from consumers indicating that there is significant demand.

Double digit growth year on year at least since 2007

Constantly rising demand from Muslim globally.

Food Industry
Globally, the Islamic finance market is estimated at $2.1 trillion. The Muslim travel market is valued at $126 billion.The Muslim fashion market is worth $96 billion. And the burgeoning personal care and cosmetics market is estimated at $13billion, although experts agree this is very low. Yet across all these sectors, products and communications aimed at the Muslim consumer are only slowly being developed. For any brands that want to gain first mover advantage and win over Muslim consumers, the time is now.

Muslim consumers are welcoming of even the smallest of overtures, understanding that businesses feel they are taking a risk. The rewards are for the taking as Muslim consumers are supportive of even the smallest of efforts and will be a brand’s best ally through word of mouth. Being tech savvy and well-connected digitally and via the concept of ummah means that support spreads quickly. And where brands do reach out to Muslim consumers, their courage will be rewarded. The response is loyalty, pride and collective endorsement.

Alongside commitment, credibility is important. Whilst being acknowledged by brands can be enjoyable for Muslim consumers, it is important that engagement is genuine. Being ‘fake’, or coming across as insincere are death knells for brands in this space. And despite best intentions, brands should ensure that they work with experts who can build strong credibility based on genuine insight and understanding.

Whether you are in control of an established company, starting up a new one, or have responsibility for a brand within an Islamic country looking for growth, Layla Mandi and the Islamic Consumer Consultancy are indispensable to help build, improve and secure brand equity and value for your company.

An Opportunity for the Taking

What brands need to do now is deepen their insights into the spending power, tastes and brand values that appeal to Muslim consumers. Britain has one of the most sophisticated well-connected and untapped Muslim consumer populations in the world. It’s time for brands to pay attention.

Food Industry

• Islamic Marketing
• Muslim Consumers
• Islamic Markets
• Commercialising Islam
• Islamic Marketing Ideals
• Islamic Marketing Mix
• Islamic Business Ethics
• Marketing Islamic Financial Products
• Halal Market
• Islamic Hospitality Continue reading Scope of Consulting Opportunities

Dubai Industrial City, a member of Tecom Investments, has announced today the launch of a dedicated ‘Halal Cluster’ in the UAE, aimed at driving the growth of Halal food, cosmetics and personal care sectors.
Abdullah Belhoul, CEO of Dubai Industrial City, said:

The creation of the Halal Cluster is another step towards Vice President and Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum’s wise vision to become the capital of the Islamic economy. It is truly rewarding seeing a project that has been a long-term goal finally come to fruition.

Layla Mandi’s aspiration to perform the fardh kifayah in making available halal products that are preferred by Muslims and everyone alike.We maintain a value chain based on integrity and to us, halal, as a concept, is built in. This effort enables the strengthening of our position as a trusted and reputable company in the industry, trailblazing the path in the domestic and global halal industry. Layla is also committed in playing a key role to promote and create awareness about the Muslim consumer and of the halal economy for the benefit of the ummah, by organising seminars, talks and discussions, aimed at fuelling awareness on the rights of the Muslim consumers in requesting for halal alternatives.

The halal travel market was estimated to be worth $140bn in 2013, accounting for almost 13% of the global total, and is expected to rise to $200bn by 2020, according to Crescentrating, a Singapore-based rating agency for halal-friendly travel services.

While Muslim travel in the past has been mainly related to providing services to Haj and Umrah pilgrims, travel agencies are now catering to a far more diverse spectrum of Muslim travellers. In East and Southeast Asia alone, the regions with the highest number of Muslims worldwide, hundreds of Muslim-only tour groups have emerged, offering services such as booking of halal hotels and itineraries that include halal-certified restaurants and the provision of prayer rooms at airports and shopping malls and other Muslim facilities, as well as Muslim-friendly business travel to meetings or events.