The Halal lifestyle is increasing rapidly throughout the world nowadays. Muslim communities have now become the biggest consumer segment demanding Halal labeled products for daily consumption. This has an impact not only for Muslim markets but also for global brands as well to provide any product certified as Halal. This issue has discussed by Dr. Paul Temporal in his book "Islamic Branding and Marketing". He stated that Muslim markets are very interesting since all their activities are related to faith and values in Islam. One specific thing in Islam is known as the concept of "Halal" and "Haram". Halal is a term encompassing everything which is allowed to be eaten or consumed as stated in the Quran; Everything that is pure, clean and tasteful for humans to consume. To be more clear, there are specific foods tied to health and cleanliness and in obedience to God which we are permitted to eat. To the contrary, Haram is everything that is specifically forbidden from use or consumption as per the teachings of the Quran.
When it comes to Islamic branding and marketing, the growth of Muslim markets has brought positive influences on global markets. Companies and marketers all around the world realize the high potential this market has, not only for selling products but also services. Recent research has shown that Muslim populations are growing rapidly. Now they represent the majority in Asia Pacific countries and this implies an increase in the number of consumers demanding Halal labeled products for their daily needs. Of course, these potential customers will generate benefits for profit-oriented companies and non-profit seeking ones as well. Halal products are in high demand not only for food products but also extend to other items and consumables.
Globally recognized brands have also recognized the potential in this trend and are labeling their products with the Halal emblem. Nestle has introduced Halal-certification in all their consumables. This marketing move has resulted in additional millions of dollars in profit, selling these products. Other brands have also jumped the bandwagon. Burger King is one of the most popular fast food franchises and has now offered Halal food on their menus. In cosmetics, Unilever and L'Oreal have promoted Halal cosmetics for Muslim women, their number one target market.
Global brands are now inclined to provide everything that is called "Muslim-friendly" products to sell and deliver in Muslim markets. According to the Fleishman-Hillard Majlis, the Global Halal market Value has reached $2.3 Trillion. It's not only private companies that receive benefits from Halal products, but entire countries can also. Take for example, Brazil, the biggest exporter of poultry and meat loaf. They have sent about 2 to 6 million meat products certified Halal every year. (Fleishman-Hillard Majlis, Sharing, 2012)
Halal labeled is not just about the label. It is considered sacred and safe enough to be consumed by Muslims. Halal branded has its advantages for global use. A brand must be very careful when promoting or advertising the Halal certified label, in order to prevent confusion for some people who had misunderstood what Halal really means. Since some people might have different interpretations about what is halal in their minds, the producing company must clearly communicate the absolute truth about Halal through their ads in the media. Otherwise, Halal will be judged negatively by non-Muslim consumers.
Known for its safeguards, the Islamic financial system is renowned for risk avoidance while conducting business. Consumers are assured that if they choose Islamic financial services, their money is safe. Thus, there are three main points to be considered when engaging in the Halal business: human capital development, product innovation and marketing communication. Proper communication should ensure that companies are successfully able to maintain good relationships with their Muslim and non-Muslim customers. Businesses should be able to be good quality providers for both communities as well. Therefore, Halal in Islam is not merely about food, clothes or financial transactions but Halal is a comprehensive concept to be reflected in one's lifestyle.
About Author
Rhesa Yogaswara, S.Si, MM, is Senior Consultant - Strategic Business Insight of QASA Consulting. Can be contacted at rhesa@qasaconsulting.com
© Business Islamica 2012
