innovative muslim market brands & opportunity gap
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Innovative Muslim Market
Brands & Opportunity Gap
Rafi-uddin ShikohE: [email protected]: www.dinarstandard.com
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Muslim Markets* ¼ of the world Barely any Global Innovation/Brands?
Most Innovative Companies & Respected Global Brands
Companies built on trust and admiration
*All logos are sole properties of respective organizations
Source: Reputation Institute
© DinarStandard 2010 2
OIC* Economies:US$ 7.6 trillion, ‘09 GDP
Growing sectors:• Transportation• Food & Agriculture• IT\ Telekom• Healthcare/ Pharma• others
MUSLIM LIFESTYLE MARKET:US$ 2 trillion+ ‘Halal’ consumer market
Growing segments:• Food, • Fashion, • Recreation• Travel• Education, • Health, • Other
Growing segments:• Investment Banks/PE Firms, • VC Firms• Retail Banks• Insurance Companies• Other
ISLAMIC FINANCEUS$ 1 trillion, 15-20% growth/year
Emerging Muslim Market Innovations/ Brands
3 Key Opportunity Areas
*57 OIC (Organization of Islamic Conference) member countries
© DinarStandard 2010 3
Two Objectives today
1
2
Share Examples of Innovative
Muslim Market Brands
Strategies for
Big Thinking - Global Leadership
Innovative Muslim Market Brands & Opportunity Gap
4
Muslim Market Innovations/ Brands
First: Innovation Defined
• Implementing new ideas in a
commercially viable way.
• Types of Innovation:
• Product: Ebay
• Process: Dell
• B-Model: iPhone - iTune
• Cust.Service: Zappos
• Positioning: Nike
© DinarStandard 2010 5*All logos are sole properties of respective organizations
Muslim Lifestyle Market: Innovative Brands
Food Sector Examples
Others:
Bateel: A Gourmet Date Experience
Offers more than 20 varieties of high quality dates
and chocolate. Recently launched a series of
Café‟s across its main markets.
HQ: Riyadh, Saudi Arabia ; Employees: 550+
Locations: 25+ outlets: including Dubai, Riyadh,
Amman, Riyadh, Mumbai, Delhi, Kuala Lumpur,
London.
Image source: Bateel website;
*All logos are sole properties of respective organizations © DinarStandard 2010 6
New York, USA now has hundreds of Halal food
carts and known as the best value for taste in NY.
An annual Vendy Award – for street vendors is NY
is regularly won by these Halal Carts.
(Shown here) The one on W 53rd Street and
Avenue of the Americas has people waiting for
hours regularly.
Muslim Lifestyle Market: Innovative Brands
Fascinating NY „Halal Cart‟ Phenomenon
Image Source: Sergio Calleja (Life is a trip)© DinarStandard 2010 7
Muslim Lifestyle Market: Innovative Brands
Fashion Sector Examples
Others:
SHUKR: Putting faith into fashion
Launched 2001: “contemporary modest clothing”
for a new generation of Muslims living in the
West. Prides having non-Muslim loyal customers.
“Aspires to be a model Islamic business…fair
trade, ethical labor practices, pursue a path of
perfection by producing clothing of the highest
standards, and avoiding interest-based financing.
.
Bahrain‟s Al-Gassra
Image source: Shukr website
*All logos are sole properties of respective organizations© DinarStandard 2010 8
Muslim Lifestyle Market: Innovative Brands
Travel & Hospitality Examples
Others:
Tamani Hotels & Resorts, Dubai
“Dedicated Ladies floor, Is alcohol free,
serves halal food, patron of Islamic art, and
donates a %age of profits to charities.”
A hospitality and leisure management division of KM
Properties, which is the real estate development
division of Dubai based KM Holding. Had announced a
US $2.3 billion Islamic-compliant real estate fund.
Image source: Tamani website
*All logos are sole properties of respective organizations© DinarStandard 2010 9
Muslim Lifestyle Market: Innovative Brands
Children Recreation Examples
Others:
Teshkeel Media Group: The 99 Comic series
Cultivate themes intrinsic to Islamic culture and deliver a
unique, values based, multi media experience to children
in the 9 to 12 age group with a global appeal.
HQ: Kuwait, Started 2003,
Raised $25 mill in first two rounds;
Theme park, merchandise license,
animation series
Image source: The99.org website
*All logos are sole properties of respective organizations© DinarStandard 2010 10
Islamic Finance: Innovative Brands
Leading Examples
Others:
Al Baraka Banking Group (Bahrain) is a leading
international Islamic bank offering retail, corporate /
investment banking and treasury services in accordance
with the principles of the Islamic Shari'a.
Vision: We believe society needs a fair and equitable financial
system: one which rewards effort and contributes to the
development of the community.
Image source: AlBaraka website
*All logos are sole properties of respective organizations© DinarStandard 2010 11
OIC* Economies: Innovative Brands
Leading & Innovative Examples
*57 OIC (Organization of Islamic Conference) member countries
Consumer Brands of the Top 100 Companies of the OIC (from DinarStandard‟s DS100 Ranking)
Select Innovative Brands
Finance:
Transportation
Food:
Education:
Hospitality:
Media:
*All logos are sole properties of respective organizations © DinarStandard 2010 12
Only fraction of demand
being met*.
Each sector represents
various consumer facing
and B2B subsectors. E.g.
Halal Food Sector in
infancy across all sub-
sectors.
• Islamic Finance: $1 trillion
in total assets, growing at
15-20% annually. Yet--still
in its infancy and mostly
B2B.
* Based on existing Halal services relative to related product category consumption today
** DinarStandard 2008 estimate based on related conventional product category current spend
Media
Online
Services
Education
Hospitality
Other
Pharma
Retail
Consumer
Goods
Halal Food
Retail
Islamic
Finance
Fashion
Tourism
Global
Audience
Faith driven
Global Muslim
Consumer Base
1.6 Billion ppn.
**US$1.8 trillion+
spend
© DinarStandard
Muslim Lifestyle Market/ Islamic Finance
HUGE Opportunity Gap.
© DinarStandard 2010 13
OIC* Market Brands
HUGE Opportunity Gap.
Increased connectivity and growth within the 57 OIC (Organization of Islamic Conference) member countries (2009 GDP est. $7.7 trillion, 12.8% of the Global GDP.)
Yet– barely any reputable global brands and innovations.
© DinarStandard 2010 14
Two Objectives today
1
2
Share Examples of Innovative
Muslim Market Brands
Strategies for
Big Thinking - Global Leadership
Innovative Muslim Market Brands & Opportunity Gap
Global value
proposition with
Islamic values
inherent
Muslim Lifestyle
market optimized
Global business
solutions with
developmental
impact
© DinarStandard 2010 15
"Innovation is capable of being presented as a
discipline, capable of being learned, capable
of being practiced.
Entrepreneurs need to search purposefully
for the sources of innovation, the changes
and their symptoms that indicate
opportunities for successful innovation."
Mr. Peter Druckers, Innovation &
Entrepreneurship
Innovation Strategy Best Practices are well defined
So, we should learn from the best and invest
© DinarStandard 2010 16
...but, hasn’t exactly translated to the OIC environment
Industry clusters have been developed and
existed for years.
Global consulting firms have been advising
OIC companies on these strategies.
No Silicon Valley as yet,
No Google as yet,
No Values driven truly global “Islamic Brand”
© DinarStandard 2010 17
Leading Global
Brands
50 Most Innovative
Global Companies
Top 100+
Companies of the
Muslim World
a) A corporate culture that fosters “Fear of
Failure” at all levels
a) Small Thinking led by executive leadership
b) A corporate culture that discourages “Critical
Thinking” at all levels
1. Relative “Chronic” gaps in the OIC markets’ innovation culture
2. Major gaps in branding & marketing approach
VS
Top 100+
Companies of the
Muslim World
VS
We compared and looked closely and found*:
So what‟s missing?
*Based on DinarStandard research/ analysis © DinarStandard 2010
a) Disingenuous brand soul/ identity
b) Relative lack of marketing investment
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2. „Rehabilitate‟ an Innovation
culture
Critical to realize full potential of Muslim market opportunities
Solution: 3 Core Areas to address
3. Develop competitive, marketing
& innovation practices
1. Products/Brands with unique soul: (Islamic brands – must have Islam driven
core values/ purpose)Challenges
Unique to
the Muslim
markets
*Based on DinarStandard analysis © DinarStandard 2010 19
Shari‘*divine rules
Tabi‘*aspect of 'dunia‘ (world)
• Iman – faith in Allah• Taqwa – Fear of Allah• Ihsan – Love of Allah• Itqan – Excellence• Mujahedah – Self
Improvement• Amanah - Trust• 'Ahd – Keep promises• Adl – Justice• Birr – righteousnessSource: Leadership: An Islamic Perspective, by Dr. Rafik Beekun, Dr. Jamal Badawi
Profit Not UsuryZakat – Charity
• Innovation• Corporate governance• Interactive Marketing• Quality control• Product development• R&D• Global integration • Information Tech.• Competitive strategy
* Source: Inseparable Shari' and Tabi' Principles in Business Strategy: Prof. Dr. Saiful Azhar Rosly
Islamic Brands soul: Islam defined values as the driving force
© DinarStandard 2010 20
IFI’s Operational Manifestation Disclo
sure
& G
ove
rnan
ce as a Me
ans o
f Acco
un
tability
Mandatory
• Screening of investments
• Earnings prohibited by Shari‟a
• Responsible dealings with clients
• Employees
• Zakah
Operations(employees, vendors, etc)
Financial
mobilization Religious (Form & Substance in all
operations)
Recommended
• Qard Hasan
• Environmental considerations
• Screening clients and contractors (add. criteria)
• Industry-wise investment quotas
• Social impact based investment quotas
• Par excellence customer service
• Micro/ small sized biz social savings and investments
• Employee welfare (extension)
• Charitable activities
Social Responsibilities
Can be applied across all business sectors
Example Values Framework for Islamic Financial Institutions (IFI‟s)
*Based on 2009 Survey by DinarStandard and Dar Al Istithmar, Jan 2010, Supported by Industry standardization body AAOIFI
© DinarStandard 2010 21
CR
ISIS
OP
PO
RTU
NIT
Y
Hunger
• Increased food prices in 2007/ 2008 has increased malnourished people worldwide by 119 million. Total to nearly one billion people . – Oxfam
Financial
• Collapse of major Wall Street institutions leading to a worldwide recession.
Climate
• Global carbon emissions rose 3 percent last year. Could result in large-scale melting of glaciers. With a dangerous rise in sea level. - NowPublic
Ignorance
• One in five children in developing countries does not complete five years of basic education; one billion illiterate adults.– PBS, Wide Angle
Health
• 14 million people in developing countries die from infectious diseases. Mostly due to expensive medicines. No Insurance. - Oxfam
Management
• Inaccurate financial reporting; executive pay excesses; bribery; labor/ employee abuse. Enron, Tyco, WorldCom, Satyam scandals.
Islamic Finance
• Unprecedented Opportunity to take global leadership
• A new guide to the Global Finance industry
• Take ownership of real-economy sectors with biggest human development impact.
Agriculture sector Leadership
• Egypt, Bangladesh, Pakistan, Sudan, Nigeria - are some of the most agriculturally endowed in the world however with dismally low productivity.
Sustainable Tech. Leadership
• Renewable energy initiatives – solar; wind power, other.
Education sector Leadership
• World-class education/ research institutes
• Thought leadership
Healthcare sector Leadership
• Healthcare management development
• Medical research leadership
Management Leadership
• Lead by example with ethically conscious management practices
• Sector investment focus • Sector investment focus • Sector investment focus • Sector investment focus • Management practices
Islamic Values driven opportunities
Islamic finance global leadership
*Based on DinarStandard analysis © DinarStandard 2010 22
• Customer
Insights
research/
analysis
• Marketing
Strategy/
Campaigns
Islamic Finance Muslim Lifestyle Market℠ OIC – SectorsHealthcare/ Pharma, Food, IT,
Others
CUSTOMERSAcquire, Retain,
Grow
MARKETSNew regions,
Segments
INNOVATIONProduct, Model,
Process
RESPONSIBILITY
Ho
w yo
u G
RO
W?
Ho
w w
e h
elp
?
Optimize (Profitability)
• New market
Feasibility
• Market
opportunity
• Business
Planning
• Investment
analysis
• Big-Thinking
Innovation
Framework
• Innovation
culture at work
• Social
responsibility
framework
• Audit &
Recommendations
How we address the unique Muslim market gaps and opportunities
Our Growth Strategy Methodology*
© DinarStandard 2010
*DinarStandard Consulting Framework
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Summary of two Objectives today
1
2
A rich diversity of exciting brands are emerging from across
the Muslim lifestyle, Islamic finance and OIC markets -- yet
far from their potential or global impact.
Innovative Muslim Market Brands & Opportunity Gap
To realize full global potential of Muslim brands:
1. Develop products with unique soul: (Islamic brands –
must have Islam driven core values/ purpose)
2. „Rehabilitate‟ an Innovation culture
3. Develop competitive, marketing & innovation practices
© DinarStandard 2010 24
Envisioned Future?
Salman Amin, CEO, Pepsico UK
World's Most Admired Companies (Fortune 2007)
World's Most Influential
Business Leaders
“You are the best of peoples ever raised up for mankind...”
(Qur’an: Al-Imran3:110)
© DinarStandard 2010*All logos are sole properties of respective organizations 25
CONTACT:
Rafi-uddin ShikohManaging Director
DinarStandard31 Kinglet Avenue, Marlboro, NJ, USAT: 1-347-624-7454F: 1-201-526-8404E: [email protected]: www.DinarStandard.com
Growth Strategies for Muslim Markets
© DinarStandard 2010
Reproduction of this presentation or any part of it
should be accompanied with proper credit to
DinarStandard and without any manipulation. All
third party images and logos are sole properties of
respective organizations.
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