Islamic Branding and Marketing Forum Report

WWW.SBS.OXFORD.
EDU
THE INAUGURAL OXFORD
GLOBAL ISLAMIC BRANDING
AND MARKETING FORUM
2627 July 2010, Oxford, England
EDUCATING LEADERS FOR 800 YEARS
UNIVERSITY OF OXFORD
FORUM REPORT
THE INAUGURAL OXFORD GLOBAL ISLAMIC BRANDING AND MARKETING FORUM 02
ACKNOWLEDGEMENTS
I would like to thank you all for making this Inaugural Oxford Global Islamic Branding and Marketing Forum
the success it undoubtedly was. The contributions of the distinguished speakers, moderators and delegates
were rst class and ensured that the two days were an enjoyable and memorable learning experience. I hope
that this summary of proceedings will serve as a reminder of many of the key points that were made during this
groundbreaking event, and look forward very much to seeing you at our next Forum.
Paul Temporal, Forum Director
THE INAUGURAL OXFORD
GLOBAL ISLAMIC BRANDING
AND MARKETING FORUM
Report from a Forum held 2627 July 2010
Sad Business School, University of Oxford
03 WWW.SBS.OXFORD.EDU/ISLAMICMARKETING
NOTES ABOUT THIS REPORT
Since the development of the Islamic marketing and branding industry is at an early stage, there is variation in
opinion on market and revenue sizing, as well as different perspectives on the activities of existing players in these
elds. All information in this report is recorded as delivered by the participants in order to reect accurately their
delivery, and the variation in opinions that currently exist. This is the reason that gures vary or may even disagree.
Further, the information is preserved as speakers delivered it, and has not been normalised against market data.
Therefore some information may be at odds with more widely available information. If readers wish to verify data,
they are encouraged to contact the Sad Business School and follow up with the conference organisers or the
speakers themselves.
04 THE INAUGURAL OXFORD GLOBAL ISLAMIC BRANDING AND MARKETING FORUM
FOREWORD
I was delighted that the University of Oxford hosted the Inaugural Oxford Global Islamic Branding and Marketing
Forum.
Oxford scholars have long had a deep interest in Islam, including its culture, learning and civilisation. We are
equally interested in the nature of contemporary business and in connections between business and the wider
world.
My predecessor, Dr John Hood, wisely observed that A full and informed understanding of Islam is a major
priority for us in the West. Universities like Oxford have an important role to play in the development of that
understanding.
The Forum was a great success, and I am pleased to introduce this summary of its proceedings.
Professor Andrew Hamilton, FRS
Vice Chancellor
University of Oxford
ABOUT THE FORUM
The Inaugural Oxford Global Islamic Branding and Marketing Forum brought together business and thought leaders
to discuss and debate the opportunities and challenges of engaging the growing Muslim market. Held at the Sad
Business School, University of Oxford, on 2627 July 2010, it was attended by over 230 delegates from across the
globe.
Although the rise of industries characterised as halal, Islamic and shariah-compliant have increasingly made
headline news, this was the rst forum of its kind focusing specically on the branding and marketing aspects of
addressing Muslim markets and consumers.
The Forum was structured to look at several different perspectives of Islamic branding and marketing. What do
we mean by Muslim markets and brands? What are the challenges, how can they be overcome and how to build
customer loyalty? How are Muslims perceived today when it comes to religion, culture and branding and what are
the challenges of engaging Muslims in a multicultural global world? What can we learn from the development of
the Islamic nance industry, and where next for this sector? What innovation can we hope for in the future and
what trends will shape the Muslim markets of the future?
Keynote addresses were delivered by global leaders such as Rt. Hon. Pehin Sri Haji Abdul Taib Mahmud, Chief
Minister of Sarawak, Malaysia; Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers Department,
Malaysia; Miles Young, CEO, Ogilvy & Mather Worldwide; Shri K. Rahman Khan, Deputy Chairman of the Rajya
Sabha and MP Indian National Congress; Tan Sri Dato H. Muhammad-Ali, President and CEO, Johor Corporation;
Roy Michel Haddad, Chairman and CEO, JWT Middle East and North Africa; Shaukat Aziz, Former Prime Minister
of Pakistan and HRH Raja Dr Nazrin Shah, Crown Prince of Perak, Malaysia.
Several key themes emerged, and these are elaborated on in the Executive Summary:
The conference was the rst of its kind in bringing together thought leaders, business pioneers and
entrepreneurs to focus entirely on Islamic branding and marketing
Market denition and sizing, as well as consumer data and segmentation show considerable variation due to
the nascent nature of the industry
Muslim consumers, both globally and nationally, are not a homogeneous entity. Their diversity
demographically, ethnographically and by gender must be recognised and understood.
Islamic branding and marketing can be used to tackle wider global issues affecting Muslims at a political and
international level
A positive change of attitude towards innovation, risk-taking and business aspiration is required to inspire and
nurture Muslim entrepreneurs
Strong value propositions will be key to the success of Islamic brands

TABLE OF CONTENTS
FOREWORD ............................................................................................................................................ 04
EXECUTIVE SUMMARY ............................................................................................................................ 09
FORUM PROGRAMME ............................................................................................................................. 14
SESSION 1: OPENING SESSION ............................................................................................................. 16
SESSION 2: THE MUSLIM BUSINESS WORLD MARKETS AND BRANDS ............................................... 18
SESSION 3: THE BRUNEI HALAL BRAND: BUILDING ISLAMIC BRANDS FOR NICHE MARKETS .............. 21
SESSION 4: THE HALAL CITY OF THE FUTURE: BUILDING A CITYS ISLAMIC BRAND
AND THE MARKETING CHALLENGES FACED ........................................................................................... 22
SESSION 5: WINNING AND RETAINING CUSTOMER LOYALTY IN A DIVERSE MARKET ............................ 23
SESSION 6: MARKETING CHALLENGES OF THE GLOBAL HALAL INDUSTRY. WHAT MUST WE DO? ......... 24
SESSION 7: THE MUSLIM WORLD TODAY: PERCEPTIONS AND PERSPECTIVES ...................................... 25
SESSIO 8: DINNER KEYNOTE ADDRESS: MUSLIMS IN TODAYS INDIA ................................................... 26
SESSION 9: THE FUTURE OF ISLAMIC FINANCE: TRENDS, GROWTH, INNOVATION ................................ 28
SESSION 10: INNOVATIVE GLOBAL MARKETING DEVELOPMENTS .......................................................... 30
SESSION 11: REACHING THE MUSLIM MARKET: OPPORTUNITIES AND CHALLENGES ........................... 33
SESSION 12: ANTICIPATING THE FUTURE: WHAT ARE THE FUTURE TRENDS IN GLOBAL
MUSLIM MARKETS? HOW SHOULD WE PREPARE FOR THE SHAPE OF THINGS TO COME? ..................... 35
SESSION 13: RELIGION, CULTURE AND BRANDING: THE IMPORTANCE OF UNDERSTANDING
AND THE CHALLENGES OF ENGAGING A GLOBAL MULTICULTURAL WORLD .......................................... 37
SESSION 14: CLOSING REMARKS .......................................................................................................... 39
PARTNERS .............................................................................................................................................. 42
CONTACT DETAILS .................................................................................................................. BACK COVER
EXECUTIVE SUMMARY
THE CONFERENCE WAS THE FIRST OF ITS KIND IN BRINGING TOGETHER THOUGHT LEADERS, BUSINESS
PIONEERS AND ENTREPRENEURS TO FOCUS ENTIRELY ON ISLAMIC BRANDING AND MARKETING
According to the Pew Research Center a comprehensive demographic study of more than 200 countries nds that
there are 1.57 billion Muslims of all ages living in the world today, representing 23% of an estimated 2009 world
population of 6.8 billion. Not only is the Muslim population a signicant percentage of the global population, but
AT Kearney also point out that the market for shariah-compliant products or services totals USD$2trillion annually
and is growing rapidly. As Muslim countries develop, there is an expressed need to develop and market their own
brands to the rest of the world. Additionally, there is substantial interest amongst non-Muslim companies in how
to enter and penetrate this global market, which spans many industries, including nance, food and beverage,
cosmetics, healthcare, pharmaceuticals, logistics, tourism, fashion, and others.
The Oxford Forum was the rst to bring Muslim and non-Muslim leaders and companies from a variety of public
and private sector organisations together to discuss how to develop better trade and business relations and to
learn from each other about the markets involved and the techniques required. Referring to the Islamic Branding
and Marketing Research and Education Project which organised the Forum, its Project Director Dr Paul Temporal
commented that: The Forum is the Projects rst signicant event at a time of rising interest.
Gay Haskins, Dean of Executive Education, welcomed everyone, and Professor Hamilton, the Vice-Chancellor of
Oxford University, noted that As the global village increasingly takes shape at the start of the 21st century
Oxford University was a natural place to create a full understanding of Islam in the West, and that this innovative
forum was part of a centuries-long quest to deepen relations with the Muslim world.
Javed Husain, co-founder and director of the Media Reach agency felt that it was interesting that the debate about
Islamic branding being hosted by the Forum the rst of its kind was being held in the West rather than the
traditional Islamic lands of the East.
Miles Young, CEO of Ogilvy & Mather Worldwide, noted that the appreciation of this growing market is only slowly
beginning to dawn on the commercial world: It was when we sent out a mailer recently, describing Muslim
consumers conservatively as the third one billion that the bells started nally to ring in the global HQs of some of
our clients. Yes, this is a market bigger than India or China is, and yet it receives a tiny fraction of the attention.
MARKET DEFINITION AND SIZING, AS WELL AS CONSUMER DATA AND SEGMENTATION SHOW
CONSIDERABLE VARIATION DUE TO THE NASCENT NATURE OF THE INDUSTRY
Speakers throughout the conference were conscious of the variation in market sizing data that they quoted in their
analysis. The Muslim global population was variously quoted as ranging from between 1.57bn to 1.9bn, the global
halal industry was estimated from USD$150bn to anywhere up to USD $632bn, and the Islamic nance industry
was quoted at between USD$1 trillion and USD$2 trillion. Not only were the numbers themselves different, it was
clear that the denitions of terms like halal, shariah-compliant and Islamic were used with variation.
The analysis of both the size and the breakdown of the Muslim market was of evident concern in sizing the
commercial opportunities available and the best way to tailor products and brands to meet those opportunities. As
Sarah Joseph, Editor of EMEL Magazine, explained: investors should not be fooled into thinking the big numbers
that were being quoted are one market rather they comprise lots of markets with great variation. However, she
noted more optimistically that the unifying factor was that values do travel across sectors whereas cultures do
not.
For the industry to develop it was clear that more work on sizing and analysis would need to be undertaken.
However, there was a challenge to source actual and reliable data. Professor Cedomir Nestorovic of the ESSEC
Business School in Paris gave the example of France: There are no real gures to size the market, and these will
be difcult to obtain since 90% of halal food is sold in small shops.
There was general consensus on the key segments that were ripe for targeting. Dr Temporal explained: The halal
industry focuses on ve segments: Islamic lifestyle products, food and beverage, nance, education and internet
and digital brands. Young noted the ranking of the importance of shariah-compliance increases with the body
sensitivity of the product where food, dairy, beverages and oral care score highest, followed by fashion, personal
care and regular nance and nally airlines, resorts, nancial and insurance products. Some products are
considered neutral of the halal/haram criteria such as software.
Two of the worlds leading global marketing and advertising agencies Ogilvy & Mather Worldwide and JWT, the
former using the Forum to highlight the launch of their specialist Islamic Branding agency Ogilvy Noor - presented
their research into the Muslim market, along with their own consumer segmentation.
Research by Ogilvy Noor identied six consumer segments, of which three, when grouped together as Futurists
are of most interest to marketers. They are individualists who choose Islam. Their pride is intense, regardless of
the extent to which they would be categorised as devout. They believe in education and question intention. In
particular they challenge the use of halal to make sure it is not just a logo. Where information on halal status is
not available the companys reputation for shariah-friendliness is key.
JWT commissioned the rst commercial research into sizing the Muslim market. The aim was to identify the
common values at the markets core in order to create relevance for the community at large with the ultimate
goal of ne-tuning propositions across regions and countries. Can we segment the Muslim world into groups that
brands can be anchored on? asked Roy Michel Haddad, Chairman and CEO JWT Middle East and North Africa.
THE MUSLIM CONSUMER IS NOT A HOMOGENEOUS ENTITY. THEIR DIVERSITY MUST BE RECOGNISED AND
UNDERSTOOD
Dr Basil Mustafa, Nelson Mandela Fellow and Bursar, Oxford Centre for Islamic Studies, captured the mood of the
Forum with the sentiment of diversity that was repeated by almost every speaker: Muslims are a mosaic of views
on halal, on culture, attitudes, economics, poverty and other demographics. This mosaic includes Muslims who
live in both majority and minority Muslim countries. He warned that the Islamic branding discussion must avoid
lazy stereotypes of monolithic Muslims or Islam vs. West dichotomies. Drilling deeper into the differences that are
worth noting, Dr Temporal mentioned: diverse locations, languages and dialects, cultural and lifestyle differences,
degrees of religiosity, education, afuence and marketing sophistication.
Haddad went further still stating that: There is no single Muslim consumer, only a consumer to whom we have to
respond, who has wants, needs and desires. Ramadan is the only time that the Muslim consumer exists. Instead
we must ask: can these consumers be reached based on their Islamic identity despite cultural and geographic
differences?
Young offered advice to western marketers, who in his view face two big challenges when it comes to addressing
the diversity of Muslim consumers: First, most companies operate on a geographic basis, but the Islamic
conscience is something that is a more centralised concept. The best way to capture this is to move from localised
management, to a centralised product management function to invest the Islamic brand into products from their
very core. Second, Muslim consumers are not a segment that differs by one variable from the norm, such as the
pink dollar. Muslim consumers are an alternative norm where the starting point is Islamic identity, and everything
else ts into it. Muslims own belief in the signicance of Islam in their lives is pervasive, and for them, this
sincerity is key in marketing practice.
It was not only Western marketers who needed to be conscious of this diversity, but also Muslims themselves,
according to HE Shri K. Rahman Khan, Deputy Chairman of the Rajya Sabha and MP Indian National Congress.
He spoke of this challenge when it came to the huge Indian Muslim population which is nonetheless classied as
a minority: The world Muslim community has generally ignored Indian Muslims even though they are the second
largest Muslim population in the world. For example, the Organisation of the Islamic Conference and Islamic
Development Bank concentrate their activities on Muslim countries, so a small Muslim nation of two million will
have a say in those forums, but a minority Muslim population like Indias of over two hundred million Muslims will
have no say.
The Rt Hon Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak, Malaysia, had some further words
of advice, cautioning that the international community must be mindful of the diversity and that to take
advantage of this the commercial world needs to develop regional trade as well as inter-regional trade. It needs to
recognise that the halal market is growing and seek out Muslim consumers, whether the companies are Muslim-run
themselves or not.
ISLAMIC BRANDING AND MARKETING CAN BE USED TO TACKLE WIDER GLOBAL ISSUES AFFECTING
MUSLIMS AT A POLITICAL AND INTERNATIONAL LEVEL
Sir Iqbal Sacranie argued that the issue of Islamic branding affects both halal products, and Muslims and Muslim
countries. Negative media coverage makes Muslims feel fearful and want to hide. In Sacranies view one of the
responsibilities of the Islamic branding industry is to address the wider issue of negativity.
The Rt Hon Taib Mahmud complimented the Forum on its role which he felt extended beyond just branding and
marketing: When it comes to Muslim nations issues are raised such as poverty, deprivation, terrorism, extremism
and other forms of negative stereotyping, but by focusing on the economic angle, this inaugural Islamic Branding
Forum offers a fresh way to tackle those issues, noting that an Islamic lifestyle does not mean an anti-western or
anti-modernity lifestyle.
As an example of how commerce could work towards addressing political problems, Dr Mustafa described the
rise of coffee as a consumer product as one model for building Islamic brands. In the 17th century it was rst
introduced to Europe from the Muslim world. Some Europeans were enamoured of it, others saw it as the sinful
drink of indels. Today coffee is a highly desirable commodity.
Effective Islamic branding and marketing would be borne by nurturing Islamic entrepreneurship, according to Tan
Sri Dato H Muhammad-Ali, CEO of Johor Corporation. Such entrepreneurship was ethical based, and community-
centric and hence would tackle the lack of even wealth distribution, mass poverty and global conicts. He went
further to say that Islamic products and brands could be used to tackle general challenges wider than that of just
Muslim consumers, addressing issues such as sustainability, nancial crises, the rich/poor divide, and ethics in
business.
HE Shaukat Aziz, former Prime Minister of Pakistan, elaborated on this by saying that: At a global level, Islamic
marketing and branding must be part of the work to tackle terrorism. Deprivation is the most likely root cause
of terrorist acts lack of income, justice, freedom, peace and harmony. Islam encourages peace, harmony and
tolerance. Not terrorism!
HRH Raja Dr Nazrin Shah added optimistically that Growing commercial opportunities can bind Muslims and
non-Muslims in a common humanity even though till now religion has long been considered taboo in mass
marketing. But he warned we should be cautious in how far we pursue segmentation on religious lines, if the
Islamic brand proves a turn-off for non-Muslims. Caution must be exercised of the inherent dangers of widespread
use of faith-based brands which in the worst-case scenario could feed into Huntingtons polarising clash of
civilisations thesis. He explained that political negativity could spill over into commercial negativity towards
Muslims brands, making it difcult for Islamic products to penetrate Western markets. In his view Muslim
businesses already in the West were best-placed to counter such negativity.
A POSITIVE CHANGE OF ATTITUDE TOWARDS INNOVATION, RISK-TAKING AND BUSINESS ASPIRATION IS
REQUIRED TO INSPIRE AND NURTURE MUSLIM ENTREPRENEURS
When it comes to developing world class products, Ra-uddin Shikoh, CEO of DinarStandard, noted that none
of todays global brands are from a Muslim country. He explained: Innovation is being held back in Muslim
companies by fear of failure, small thinking and a lack of critical thinking. Haddad added a lack of creativity
to this list, which he felt stemmed from a poor understanding of Islamic culture. This lack of creativity was
demonstrated through the stereotypical and shallow symbolism that exploited tired imagery like the crescent and
the arch. It was time to move beyond traditional expressions, he added.
One of the challenges according to Tan Sri Muhammad-Ali, is that in South Asia business is seen by Muslims as
a negative matter, something that is worldly and detracts from the spiritual. He coined the strapline Business
Jihad to encourage Muslims to think of business as a religious duty and so work on changing perceptions. He
emphasised that Muslims are no less entrepreneurial, however their businesses are not organised. For example,
95% of Middle East businesses are family owned. Though highly protable only 6% lasted to the third generation,
and only 2% beyond that.
He cautioned that for entrepreneurship to be Islamic it cannot just copy conventional models because of the risks
of placing prot over people and being unsustainable. Conventional entrepreneurship was also exclusive to those
with access to capital and networks and so the challenge for Islamic entrepreneurship is to nd ways to encourage
entrepreneurs from people with the lowest levels of capital and networks.
Mohamed El-Fatatry, CEO of Muxlim, said that obtaining funding is challenging as was nding the right talent
that has the passion for what you are doing. Khalid Sharif, CEO of Ummah Foods, noted that part of the attitude
change required was an acknowledgement that whilst trillion dollar estimates were thrown around, there must
be consciousness of the various political and economic problems facing Muslims such as poverty: It is social
improvement not greed that must be the driver for the development of the industry.
The Forum showcased two examples of innovation that brought community benet: the Brunei Halal brand and the
Halal City of Tanjung Manis, in Sarawak, Malaysia. Hajah Normah SH Jamil, Director of Agriculture and Agrifood,
Ministry of Industry and Primary Resources in Brunei Darussalam, explained the philosophy of the former: As a
Muslim country, Brunei sees it [delivering halal food] as an obligation to Muslims and its brand will provide a
platform for the development of local products and SMEs and will open global doors for smaller corporations that
may not have the budget or leverage to otherwise gain access to international markets.
The Halal City is a green zone promoting sustainability and community development, two criteria that Datuk
Hajjah Norah, Executive Chairman of Tanjung Manis Food and Industrial Park explained were inherent to the halal
brand. One of the programmes had been to invest in farming tilapia sh. However, to improve sustainability and
quality, investment was made in innovative processes so that the sh produced were not low-grade commodities,
but high level luxury products. As far as community upliftment was concerned the halal city was premised on
corporate and aesthetic value because it is crucial in an area like Sarawak that young people feel a strong pull
to remain in their communities and not leave them. By making the halal city attractive and investing these strong
principles into it, there is the hope that they will feel strongly bound to their communities.
STRONG VALUE PROPOSITIONS WILL BE KEY TO THE SUCCESS OF ISLAMIC BRANDS
When it comes to Islamic branding and marketing, there are two challenges, explained Tan Sri Nor Mohamed
Yakcop, Minister in the Prime Ministers Department, Malaysia. First, is the need to develop a comprehensive
range of products that are universally accepted by all Muslims. Second, value propositions are required that
will appeal to non-Muslims which would move the addressable market from 1.6bn Muslims to the full global
population. Islamic branded products offer a better future for all, as they are based in the values of goodness and
justice. But such products needed to be competitive and the substantive benets had to be obvious. To achieve
scalability, added Tan Sri, rst a common halal brand needs to be established, and then local and theological
variation could be easily introduced. To achieve this, global standards would be helpful, and would require a
global consensus in order to build the industry and avoid duplication.
Nestorovic explained that bringing Muslim brands from Muslim countries would be challenging. Muslim brands
need to think carefully about who their propositions are aimed at and whether the context is a majority or minority
Muslim country. Muslim brands must choose whether to target Muslims or non-Muslims. For example, should a
halal certication logo be placed on the product? In the case of France, it already has a volatile environment when
it comes to Islam, and this could exacerbate it. The best rst step might be for such brands to be marketed to
Muslims only, he advised.
Local propositions are increasingly popular as long as they deliver quality. John Timothy, International Corporate
Affairs Manager, Tesco, explained that the local approach is key. In Malaysia it will allow Tesco to become part of
Malaysias plan to export their halal products. In Turkey, the local approach is also used. To serve customers better
the company has been broken into regional groups, and stores are localised for local taste.
Young explained that Global brands are liked for their quality, innovation and heritage, but the sincerity of their
halal-friendliness is doubted. Local brands are considered to have more insight and evoke pride, but raise concerns
of quality and helpfulness. Global brands need to communicate their sincerity, local brands need to show quality,
innovation and transparency.
He added that for any kind of Islamic value proposition the qualities it would need to demonstrate would include:
honesty, respect, consideration, kindness, peacefulness, authenticity, purity, patience, discipline, transparency,
modesty, community, dignity. The aim of an Islamic value proposition was not to measure devoutness but to
understand how devoutness, regardless of intensity, affects the lives of people as they work, play and consume.
An ethical approach to proposition development would reap rewards with non-Muslim as well as Muslim
consumers, noted Afaq Khan, CEO Standard Chartered Saadiq. Non-Muslim countries are also interested in
Islamic nance as they want the most efcient use of capital and to facilitate their own growth they need to engage
with the commercial opportunity of Islamic nance in the Muslim world.
Muslim consumers needed education in Islamic value propositions. Khan gave the example that consumers were
not always clear about what benets Islamic nance brought them. Layla Mandi, CEO of OnePure, noted that
for a proposition to be Islamic, it did not need to have the word Islamic in its name offering her own example:
OnePure does not advertise that it is halal on the label, but is positioned in a premium space so its halal
message can be explained clearly to consumers.
The challenge is to educate consumers and to avoid the creation of technically halal products that miss the
point, explained Joseph. Much of the groundwork for these values has already been laid by the development of
the ethical industry, the green movement, animal welfare and so on. The halal market is not the big idea. Instead
we need to focus on the big ideal of sustainable industry.
FORUM PROGRAMME
DAY ONE
Session 1: Opening Session
WELCOME REMARKS, Ms Gay Haskins, Dean, Executive Education, Sad Business School
OPENING REMARKS, Professor Andrew Hamilton, Vice Chancellor, University of Oxford
OPENING SPECIAL ADDRESS: The Role of Muslim Nations in Rebuilding Todays Global Economy
Rt Hon Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak, Malaysia
OPENING SPECIAL ADDRESS: The View from Muslim Southeast Asia
Tan Sri Nor Mohamed Yakcop, Minister In The Prime Ministers Department, Malaysia
Session 2: The Muslim Business World Markets and Brands
FORUM SCENE SETTING, Dr Paul Temporal, Associate Fellow, Sad Business School and Project Director for
Islamic Branding and Marketing
KEYNOTE ADDRESS: Brands and Muslim Consumers
Miles Young, CEO, Ogilvy & Mather Worldwide
PANEL DISCUSSION with Miles Young, CEO, Ogilvy & Mather Worldwide; Professor Cedomir Nestorovic, ESSEC
Business School, Paris; Shaista Gohir MBE, Executive Director, Muslim Womens Network UK; Khalid Sharif,
Managing Director, Ummah Foods and Editor, The Muslim Paper, and moderated by Linda Scott, Professor of
Marketing, Sad Business School, University of Oxford
Session 3: The Brunei Halal Brand: Building Islamic Brands For Niche Markets
KEYNOTE ADDRESS, Hajah Normah SH Jamil, Director of Agriculture and Agrifood, Ministry of Industry and
Primary Resources, Brunei Darussalam
Session 4: The Halal City of the Future: Building a citys Islamic brand and marketing challenges faced
KEYNOTE ADDRESS, Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub, Executive Chairman, Tanjung Manis Food
& Industrial Park Sdn Bhd, Malaysia
Session 5: Winning and Retaining Customer Loyalty in a Diverse Market
PRESENTATION, John Timothy, International Corporate Affairs Manager, Tesco followed by Q&A
Session 6: Marketing Challenges of the Global Halal Industry: What must we do?
OPEN FORUM DISCUSSION with Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers Department,
Malaysia; Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub, Executive Chairman, Tanjung Manis Food & Industrial
Park Sdn Bhd, Malaysia; Hajah Normah SH Jamil, Director of Agriculture and Agrifood, Ministry of Industry and
Primary Resources, Brunei Darussalam and moderated by: Dr Jonathan Reynolds, Academic Director of the Oxford
Institute of Retail Management, Sad Business School, University of Oxford
Session 7: The Muslim World Today: Perceptions and perspectives
PANEL DISCUSSION with Sir Iqbal Sacranie, founding Secretary General, Muslim Council of Britain; Dr Basil
A J Mustafa, Nelson Mandela Fellow and Bursar, Oxford Centre for Islamic Studies; Dr Walter Armbrust, Albert
Hourani Fellow, Middle East Centre, St Antonys College, University of Oxford and moderated by Mishal Husain,
International Broadcast Presenter
Session 8:
DINNER KEYNOTE ADDRESS: Muslims in Todays India
Shri K Rahman Khan, Deputy Chairman of the Rajya Sabha and MP Indian National Congress followed by Q&A
and moderated by Mishal Husain
DAY TWO
Session 9: The Future of Islamic Finance: Trends, growth, innovation
WELCOME REMARKS, Richard Briant, International Director, Sad Business School and Chair of Day Two of the
Oxford Global Islamic Branding and Marketing Forum 2010
KEYNOTE ADDRESS, Afaq Khan, CEO Standard Chartered Saadiq
OPEN FORUM DISCUSSION with Afaq Khan, CEO Standard Chartered Saadiq; Usman Hayat, Director Islamic
Finance and ESG Investing, CFA Institute; Walid Sarieddine, Head of Islamic Finance, Sumitomo Mitsui Banking
Corporation; M Iqbal Asaria, Associate, Afkar Consulting Ltd and moderated by Paul McNamara, CEO and Editorial
Director, Yasaar Media
Session 10: Innovative Global Marketing Developments
KEYNOTE ADDRESS: Islamic Entrepreneurship
Tan Sri Dato H Muhammad-Ali, President & CEO, Johor Corporation
OPEN FORUM DISCUSSION with: Tan Sri Dato H Muhammad-Ali, President & CEO, Johor Corporation; Mohamed
El-Fatatry, Founder & CEO, MUXLIM; Ra-uddin Shikoh, CEO, The Dinar Standard; Layla Mandi, CEO and
Founder, OnePure Halal Beauty and moderated by Dr Pegram Harrison, Fellow in Entrepreneurship, Sad Business
School, University of Oxford
Session 11: Reaching the Muslim Market: Opportunities and challenges
KEYNOTE ADDRESS, Roy Haddad, CEO, JWT MENA
OPEN FORUM DISCUSSION with Roy Haddad, Chairman & CEO, JWT Middle East & North Africa;
Sarah Joseph OBE, CEO and Editor-In-Chief, Emel; Javed Hussain, Director, Media Reach and moderated by
Linda Scott, Professor of Marketing, Sad Business School, University of Oxford
Session 12: Anticipating the Future: What are the future trends in global Muslim markets? How should we
prepare for the shape of things to come?
KEYNOTE ADDRESS, HE Shaukat Aziz, Former Prime Minister of Pakistan
OPEN FORUM DISCUSSION with HE Shaukat Aziz, Former Prime Minister of Pakistan; Arif Zaman, Advisor,
Corporate Governance, Commonwealth Business Council; Shah Hakim Zain, Group CEO, Scomi Group Bhd and
moderated by Andrew Critchlow, Middle East Managing Editor, Dow Jones Newswires
Session 13: Religion, Culture and Branding: The importance of understanding and the challenges of engaging a
global multicultural world
KEYNOTE ADDRESS, HRH Raja Dr Nazrin Shah, Crown Prince of Perak, Malaysia,
introduced by Dr A Al-Akiti, KFAS Fellow, Oxford Centre for Islamic Studies and Lecturer in Islamic Studies,
Faculty of Theology, University of Oxford
Closing Session
CLOSING REMARKS AND FORUM REPORT, Dr Paul Temporal, Associate Fellow, Sad Business School and
Project Director on Islamic Branding and Marketing
SESSION 1: OPENING SESSION
WELCOME REMARKS, Ms Gay Haskins, Dean, Executive Education, Sad Business School and
Chair of the Oxford Islamic Branding and Marketing Forum 2010
OPENING REMARKS, Professor Andrew Hamilton, Vice Chancellor of the University of Oxford
OPENING SPECIAL ADDRESS, The Rt Hon Pehin Sri Haji Abdul Taib Mahmud, Chief Minister of Sarawak,
Malaysia
OPENING SPECIAL ADDRESS, Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers Department,
Malaysia
WELCOME
Ms Haskins welcomed the Forum by noting the groundbreaking and global nature of the participants on stage and
in the audience, bringing together business leaders, branding and marketing experts and thought leaders.
OPENING
Professor Andrew Hamilton
Professor Hamilton opened the Forum by outlining that Oxford has a long and deep
relationship with the Islamic world, taking its rst international student in 1190, and
continuing this interaction with many and diverse faiths throughout its history. Universities
like Oxford have an important role in deepening the understanding of Islam, and Oxford
does this through institutions such as the Oriental Studies Faculty, the Middle East centre
which will soon celebrate its 50th anniversary and the Oxford Centre for Islamic Studies. It
is therefore timely and appropriate for Sad Business School to be holding this forum.
THE ROLE OF MUSLIM NATIONS IN REBUILDING TODAYS GLOBAL ECONOMY
The Rt Hon Pehin Sri Haji Abdul Taib Mahmud
Muslim nations have shown resilience in the face of both the Asian and the current
nancial crisis, becoming more integrated into the global economy. The combined GDP of
the OIC nations is USD $5 trillion. When it comes to Muslim nations issues are raised such
as poverty, deprivation, terrorism, extremism and other forms of negative stereotyping, but
by focusing on the economic angle, this inaugural Islamic Branding forum offers a fresh
way to tackle those issues.
It is important to note that an Islamic lifestyle does not mean an anti-western or anti-modernity lifestyle. Muslims
are becoming active consumers and active in the economy as bankers and investors. Both these hark back to the
golden era when Muslims dominated global trade by virtue of their geographic position. Whilst geography is no
longer as signicant today, the cultural, historic and religious connections that Muslims share across the globe are
an important asset for commercial markets.
The Islamic lifestyle means many different things across the diversity of Muslim countries and cultures and the
international community must be mindful of this. This means that there is no single halal hub. To take advantage
of this the commercial world needs to develop regional trade as well as inter-regional trade. It needs to recognise
that the halal market is growing and seek out Muslim consumers, whether the companies are Muslim-run
themselves or not. One example is Nestle which has delivered halal certication across 75 factories.
There are three industries where Muslims seek out special products: food, nance and fashion, and this halal
market is estimated at USD$12 trillion. When it comes to Islamic nance, it will grow from USD$1 trillion
in 2010 to USD$1.3 trillion by 2012. Islamic mutual funds are growing at 23%pa and the Takaful industry is
growing at 13%pa. Centres like London, Hong Kong and Tokyo are already positioning themselves in Islamic
nance markets, and such non-traditional players can bring fresh skills to the industry. In addition, there is a
need to mobilise enough capital through Islamic routes and this means that a new co-operation between Muslim
nations and global players is necessary. Islamic nance also faces challenges. Scholars need to rethink traditional
structures. There will be higher demand for products, which will require scalability. And there will be higher
demand for products that can be sold across Muslim and non-Muslim markets.
Muslim consumers must be targeted through a core product brand that stands up across a variety of markets,
both Muslim and non-Muslim. Also, there must be a clear understanding of the position of the corporation in
the Muslim consumers mind. The corporation can be easily affected by social movements such as boycotting
companies for their social actions. Political situations can also affect them, such as the rise of Islamic colas.
Finally, these can all lead to a nancial risk. For example, Nike had to recall 38,000 pairs of shoes when the logo
was declared by the Council of American Islamic Relations to be offensive to Muslims as it resembled the word
Allah. In summary, courting the Muslim market is no different to other markets.
THE VIEW FROM MUSLIM SOUTHEAST ASIA
Tan Sri Nor Mohamed Yakcop
Islam embraces multiculturalism, since it is a Quranic principle. The view from South
East Asia is to manage plurality as a positive thing. In Malaysia, the population is majority
Muslim, but the constitution safeguards non-Muslims the right to practice freely. Indonesia
is a Muslim country. The Philippines is Catholic and Thailand, Buddhist.
When it comes to Islamic branding and marketing, there are two challenges. First, is the
need to develop a comprehensive range of products that are universally accepted by all
Muslims. Second, value propositions are required that will appeal to non-Muslims also.
When it comes to developing a comprehensive range of products, the Islamic nance industry is an excellent
example to consider. At the moment there are more than 400 Islamic banks in over 50 countries. More Muslim
consumers are demanding shariah-compliant products, and so banks have to step up to serve all consumer
segments, not just one or some of them. Thus comprehensiveness is key to the Islamic nance proposition. In
developing Islamic industries, such as nance, it is important to note that desire to ensure compliance with faith
should not impose a prohibitive cost on developing products or on consumers purchasing products. In the Islamic
nance industry, economies of scale are required to ensure products are competitive, and this means that global
institutions are required. Although each market may have different nancial regulations, there are universal values
that apply to Islamic nance across markets, which would then allow for local customisation.
This universality of Islamic nance can also appeal to non-Muslims, because its core values just equitable
sharing of risk, and discouragement of excess leverage are very appealing to consumers who are disillusioned
and disadvantaged by the prot at all costs mindset that has triggered the latest nancial crisis. Thus shariah-
compliancy can be branded as ethical investment and appeal to Muslims and non-Muslim consumers. The key to
such products is that they must be competitive in order to appeal to consumers, and that they must have a strong
value proposition so that the substantive benet is obvious. The product must not appear to be a mainstream
product with some tweaking.
Muslim consumers want Islamic products across the whole spectrum. When it comes to food, how should they be
convinced by the halal certication process? In a Muslim country this might be done by a national board, but what
about products from non-Muslim countries? To this end, global standards would be helpful, and this will require a
global consensus in order to build the industry and avoid duplication. However, halal certication is not just about
the slaughter process, but needs examination of the whole food process from farm to table. This means tackling
issues such as food safety, chemicals used and environmentally sustainable farming methods. Again, including this
is not only of interest to Muslims, but also meets other non-Muslim consumer concerns too. Other companies may
take up halal products as a competitive advantage due to these other ethical and value proposition elements.
Broadening the comprehensiveness of the halal product range will help Muslims to practice their religion more
freely. If emerging Muslim countries embrace the opportunity to create halal products this is a big commercial
opportunity. In fact, Islamic branded products offer a better future for all, as they are based on the values of
goodness and justice.
SESSION 2: THE MUSLIM BUSINESS WORLD
MARKETS AND BRANDS
INTRODUCED BY: Dr Paul Temporal, Associate Fellow, Sad Business School and Project Director on Islamic
Branding and Marketing
KEYNOTE ADDRESS: Brands and Muslim Consumers
PANELLISTS:
Professor Cedomir Nestorovic, ESSEC Business School, Paris
Shaista Gohir, Executive Director, Muslim Womens Network, UK
Khalid Sharif, Managing Director, Ummah Foods and Editor, The Muslim Paper
MODERATOR: Linda Scott, Professor of Marketing, Sad Business School, University of Oxford
SCENE-SETTING
Dr Paul Temporal
The Islamic branding and marketing programme began in 2008 and is designed to be
of practical use to both policymakers and practitioners, and to act as a focal point for
companies to share their expertise. It was a response to demand for more knowledge about
Islamic markets from non-Muslim organisations, and an expressed need from Muslim
countries and companies to acquire the skills to build their own brands and diversify. The
Forum is the programmes rst signicant event at a time of rising interest. It aims to build
links with other educational institutions, to give partners access to research to improve
effectiveness and to offer education for companies and executives.
In 2009 the Pew Centre provided the rst accurate gures for the Muslim population, but the picture is complex.
The global Muslim population is 1.57 billion (23%) spread across 200 countries, of which 300 million (20%)
are in Muslim minority countries. Of these, the Indian Muslim population is the largest comprising 161 million.
62% are in Asia, 20% in MENA, approximately 15% in Sub-Saharan Africa and only 2.7% in Europe and North
America, with small numbers in South America and Australia. There is a clear divide between rich and poor, most
of these populations being relatively poor. The Muslim populations across markets show a number of similarities:
common faith, values and identity as Muslims; similar lifestyle as well as halal dietary requirements, and a strong
sense of community and welfare. However, the differences are worth noting of diverse locations, languages and
dialects, cultural and lifestyle differences, degrees of religiosity, education, afuence and marketing sophistication.
The halal industry focuses on ve segments: Islamic lifestyle products, food and beverage, nance, education
and internet and digital brands. Strategic brand and marketing opportunities lie at country level, industry level,
corporate level including mergers and acquisitions, product and service levels.
BRANDS AND MUSLIM CONSUMERS
Miles Young
Muslim consumers known as the third billion are starting to resonate with our clients
at their global HQs. Bigger than India or China they receive a tiny fraction of the attention.
The GDP of the ve large Middle Eastern countries is the same size as India, but with
one third of its population. Most global enterprises, whether from the West or the East,
have a BRIC strategy, and many are starting to look at N-11 in the same way. 53% of the
population of the N-11 are Muslim. Muslim countries are some of the youngest in the world
with more than 750 million Muslims under the age of 25, representing 43% of the global
Muslim population, and 11% of the worlds. This population and economic growth has
been accompanied by an Islamic renaissance.
Western marketers face two big challenges when it comes to addressing Muslim consumers. First, most companies
operate on a geographic basis, but the Islamic conscience is something that is a more centralised concept. The
best way to capture this is to move from localised management, to a centralised product management function
to invest the Islamic brand into products from their very core. Second, Muslim consumers are not a segment that
differs by one variable from the norm, such as the pink dollar. Muslim consumers are an alternative norm where
the starting point is Islamic identity, and everything else ts into it. Muslims own belief in the signicance of
Islam in their lives is pervasive, and for them, this sincerity is key in marketing practice.
There is no such thing as a Muslim brand, and brands do not have religious beliefs. One demonstration of this is
the failure of Islamic colas, which did not exhibit sincerity. As Shelina Janmohamed remarked, What was Islamic
about them except their name? They cashed in on a moment of political history. They misunderstood what it was to
be a brand: what brand equity is, and what is the relationship between it, the category benets and the consumer
needs are.
Ogilvy Noor denes Islamic branding as branding thats empathetic to shariah values, in order to appeal to the
Muslim consumer, ranging from basic shariah-friendliness to full shariah-compliance in all aspects of a brands
identity, behaviour and communications. Shariah is not limited to qh (law) but includes values such as:
honesty, respect, consideration, kindness, peacefulness, authenticity, purity, patience, discipline, transparency,
modesty, community, dignity. Its aim is not to measure devoutness but to understand how devoutness, regardless
of intensity, affects the lives of people as they work, play and consume. Ogilvy Noor commissioned research in
four key Muslim markets Saudi Arabia, Egypt, Pakistan and Malaysia and then qualied and sense checked the
results in other both majority and minority markets. The report is entitled: Brands, Islam and the New Muslim
Consumer. Six segments were identied looking through the lens of the role that religion plays.
The Connected (27%) see themselves as part of the web-like network of the Ummah, saying religion connects
me. Technology is positive, and compassion ranks highly. The Grounded (23%) say religion centres me. Islam
is their anchor, religion and culture are inseparable. They seek peace and closeness to Allah. The Immaculates
(11%) say religion puries me are younger, seek discipline and perfection, and may incline towards rejecting the
impure. These three segments have a more Traditionalist mindset; a desire for harmony and belonging; quietly
proud of their faith; aligning with values of tolerance and compassion.
But marketers should focus themselves on the other three segments, which are identied by the Futurist mindset
who see themselves as steadfast followers of Islam in a modern world. They are individualists who choose Islam.
Their pride is intense, regardless of the extent to which they would be categorised as devout. They believe in
education and question intention. In particular they challenge the use of halal to make sure it is not just a
logo. Where information on halal status is not available the companys reputation for shariah-friendliness is key.
Identiers (27%) wear Islam with pride: religion identies me and want it strengthened and defended. The
Movers (6%) say religion enables me. They are internet savvy and act as change agents. The Synthesizers (6%)
are pragmatic, and adapt religious practice to their needs saying religion individuates me. Futurists want the
brand to be their friend, not see them as a market opportunity.
The importance of shariah-compliance increases with the body sensitivity of the product where food, dairy,
beverages and oral care score highest, followed by fashion, personal care and regular nance and nally airlines,
resorts, nancial and insurance products. Some products are considered neutral of the halal/haram criteria such as
software.
Global brands are liked for their quality, innovation and heritage, but the sincerity of their halal-friendliness is
doubted. Local brands are considered to have more insight and evoke pride, but raise concerns of quality and
helpfulness. Global brands need to communicate their sincerity, local brands need to show quality, innovation and
transparency.
One of the other outputs of the research is the Noor Index a quantied ranking of brands perceived shariah-
friendliness. For companies entering this market, while rules matter, they are not the whole picture. Intention
matters more. Second, the branding must be world-class Futurists will not tolerate second-rate standards.
PANEL DISCUSSION
Nestorovic offered France as an interesting case study into Muslim
consumers. It has the largest Muslim population in Europe, but
has some quirks. It offers three university level degrees in Islamic
nance, but does not have an Islamic bank he noted. It is home to
the luxury industry estimated at USD$145bn, and the automotive
industry brings in USD$900bn. Yet the halal industry is worth USD
$800bn and there are no real brands in France to deal with this
industry.
He noted three challenges. There are no real gures to size the market, and these will be difcult to obtain since
90% of halal food is sold in small shops. Some halal certication is also considered dubious. Second, whilst the
Islamic nance industry has been training individuals to enter the industry, there are no such training institutions
for the halal industry, so no labour is ready. Finally the halal industry is fragmented compared to the Islamic
nance industry and consolidation is required.
He added that bringing Muslim brands from Muslim countries would be challenging. Whilst there was a golden
age where Islamic products were accepted, this was no longer the case. Muslim brands must choose whether to
target Muslims or non-Muslims. For example, should a halal certication logo be placed on the product? France
already has a volatile environment when it comes to Islam, and this could exacerbate it. The best rst step might
be for such brands to be marketed to Muslims only.
Young explained that the research commissioned by Ogilvy Noor was to offer some intelligent analysis of the
Muslim consumer market and how to maximise opportunities. Whilst earlier research by JWT had looked at sizing
the market, this was one step further in analysing and segmenting consumers. The aim of the research is to
help clients better talk to their consumers both locally and globally. Since the whole Ogilvy Noor programme was
initiated and driven by Muslims from within the organisation, Young emphasised that it was aimed at better serving
the Muslim community and not exploitation.
Sharif attempted to add some nuance from his own personal transition from Muslim consumer to Muslim producer,
explaining Todays Muslim renaissance is happening because Muslims are trying to overcome problems. This
needed investment in smaller upcoming companies, not just big global corporations. Other problems include the
poverty which affects a huge number of Muslims, and this fact must be front of mind as trillion dollar market
estimates of Muslim commercial opportunities are quoted. It is social improvement not greed that must be the
driver for the development of the industry.
He also disagreed with earlier statements that boycott brands do not work, and are not Islamic. He responded to
Young by stating that failure of products like Islamic colas was not due to brand issues but rather having the wrong
business model. Boycott products were born out of Muslim memories of being treated badly, and even a small error
on the part of a company could trigger a boycott. Sharif went as far as to say that the Noor Index as developed by
Ogilvy Noor should not include any companies at all that showed hostility to Muslims or Muslim causes, even if
other parts were halal compliant.
Gohir ew the ag for Muslim women. Where is the Muslim consumers purchasing power? she asked. With
women! Two values that were not mentioned by Young in his keynote address which she felt would speak directly
to Muslim women as consumers: equality and empowerment. Young responded that their research and work in
other countries had shown that those two qualities were indeed important and were in fact being used in the
relationship with Muslim women consumers.
Gohir then turned to challenge the experts from within the Islamic nance industry and asked where the
acknowledgement of women in Islamic nance consumption was. She also counselled organisations wishing to
target Muslim women to consider doing so through their corporate social responsibility programmes. Investing
in Muslim women through such avenues would ultimately bring benet to the brands when it comes to product
purchase.
SESSION 3: THE BRUNEI HALAL BRAND:
BUILDING ISLAMIC BRANDS FOR NICHE MARKETS
KEYNOTE ADDRESS
Hajah Normah SH Jamil,
Director of Agriculture and Agrifood,
Ministry of Industry and Primary Resources in Brunei Darussalam
THE MUSLIM POPULATION AND THE HALAL MARKET
The world Muslim population is approximately 1.9 billion, with an estimated growth of
2.5% pa. The halal industry is worth USD $560 billion and the halal food industry is worth
specically USD $150 billion, with a predicted growth of 2% pa.
ISSUES IN THE HALAL CERTIFICATION PROCESS
There are many halal labels across the world. The label indicates who has certied the product to be halal. For
example in Brunei the label is purple with a blue background. In countries like Brunei and Malaysia it is the
government that certies the halal status, but in non-Muslim countries it may be a local mosque or organisation.
There are a number of challenges for the halal certication and labelling process. First, how is the credibility of
such agencies established? How are the halal processes used to produce the products properly audited? How is the
logo protected? And what mechanisms are in place to prosecute any infringement?
BRUNEI HALAL BRAND AND ITS CREDIBILITY
The Brunei Halal brand was launched last year to address these issues. In the past there was only real consumer
concern about meat being halal. However, consumers have an increasing awareness of all ingredients and show
concern over whether they are halal or not. Since often detailed lists are issued by scholars, checking every product
for its halal status can be a challenging process for the average consumer. The Brunei Halal brand is given to
products considered to be of high quality and halal. This makes it easier for Muslim women and wives to select
suitable products. It is its own private brand which comes with a halal certication label. This is important because
consumers need to know who it is that has certied the product as halal, and the Brunei Halal brand clearly does
that.
WHY BRUNEI HALAL BRAND?
Brunei Darussalam is a Muslim country with a population of 381,000. The rst Muslim arrived in 907 and in
1368 the rst Muslim ruler, Sultan Muhammad, embraced Islam.
As a Muslim country, Brunei sees it as a fardu kifayah an obligation to Muslims to make safe, high quality
halal food readily available.
The development of this brand also gives Brunei the opportunity to diversify its economy away from its core
products of oil and gas. Also it will provide a platform for the development of local products and SMEs.
The target market for the brand includes the regional market, the GCC and European and American markets.
THE CERTIFICATION PROCESS
This is an 8-step process. Companies must begin by submitting an application which is processed by the Halal
Food control division. A desk audit is then followed by an on-site inspection. A report is submitted to the religious
council who will issue their decision based on the ndings. If everything is in order, the applicant is issued the
certicate and halal permit upon payment.
BUSINESS OPPORTUNITIES
Companies that have been certied can avail themselves of the international prole of the Brunei Halal brand.
This is particularly valuable for smaller corporations that may not have the budget or leverage to otherwise gain
access to international markets. Or, if they dont wish to use the Brunei Halal brand they will benet from the halal
certication.
Brunei is now constructing the Brunei Agrotechnology park, where facilities for R&D and production will be
available to all companies, not just those from Brunei. The hope is that this will bring investment to Brunei.
If a halal product is good quality and those are the values that Brunei Halal brand is built on then it is suitable
for Muslims as well as non-Muslims.
SESSION 4: THE HALAL CITY OF THE FUTURE:
BUILDING A CITYS ISLAMIC BRAND AND THE
MARKETING CHALLENGES FACED
KEYNOTE ADDRESS
Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub,
Executive Chairman of Tanjung Manis Food and Industrial Park Sdn Bhd, Malaysia
Tanjung Manis is in Sarawak, and is approximately the size of Taiwan. Proposals for 16,000
hectares of the area to be turned into a Green Special Economy Zone are being submitted,
and this is being combined with the idea of halal.
Traceability and biosecurity are two of the key factors underpinning the development of the area. One of the
goals of the project is to ensure water quality is maintained along with the quality of production. This is part of
the overall ethos of having a local responsibility to community development, and this is born out of the concept
of halal. As a result of the goals of biosecurity and, community development Sarawak continues its policy of
maintaining the rainforest which has been in place since the 1950s.
This policy of sustainability will be extended throughout the Green Zone with methods such as organic farming,
green feed, green roadworks, green buildings. For example, any roadworks that are undertaken must have a life
span of 30 years. The airport will be relocated out of the Green Zone. That is to say that all activities must conform
to the highest environmental standards. For example, water management must meet world class levels. However, to
deliver against all these policies can be expensive.
Companies are invited to set up in the Green Zone, however, if they are unable to meet the policies outlined above
they are turned down, and this has already happened. For example, ship building was declined as an industry for
the area.
One project which has shown great success in integrating these criteria and the ethos of the Zone described earlier
is the Tilapia sh project. As mentioned, the area needs food security but also cost effective food production. This
project was able to deliver to those goals. This was done by partnering with a sea technology company from Taiwan,
which as it happens is not Muslim. This is worth noting. The project had the support of the Vice President of
Taiwan. The company was selected because of their zero-waste policy everything would be used. In establishing
the project, the company spent a year with local villagers and got involved with the community in order to better
understand the environment and their needs and to secure mutual support.
Tilapia is normally considered a low end, low value product. However, in this project, high quality methods were
used in order to reposition the sh from a low end cheap commodity to something of sufcient quality to be used
for high end products like sushi. This new process was developed in conjunction with the company and the IP
was shared with them. The process involved introducing corella algae which is expensive but reduces white spot
disease, cholesterol and improves the quality. It is expensive, but the whole process injects value into the product.
Part of the issue of food security is that food should be affordable, and this is a principle of halal, and food
security and affordability are also part of the development of the Green Zone. These are subjects at the heart of the
Halal City along with the green and organic initiatives outlined earlier. The Halal City will focus on sports tourism,
food production and lifestyle companies. It will be marked at its entrance by a green gate after which point no
fossil fuel cars will be permitted in the Zone. Only transportation like solar, battery or even horse and cart! will
be admitted.
Side by side with this, the Halal City must have both corporate and aesthetic value because it is crucial in an area
like Sarawak that young people feel a strong pull to remain in their communities and not leave them. By making
the Halal Ccity attractive and investing these strong principles into it, there is the hope that they will feel strongly
bound to their communities.
SESSION 5: WINNING AND RETAINING CUSTOMER
LOYALTY IN A DIVERSE MARKET
KEYNOTE ADDRESS
John Timothy, International Corporate Affairs Manager, Tesco
Muslim consumers are becoming an increasingly important demographic. Increasing awareness of religious
obligations is creating greater demand for halal food and other consumer goods. The needs of Muslim consumers
are not the same the world over. The key for a corporation like Tesco is to understand consumers and respond to
their needs in order to earn and retain loyalty.
Tesco is present in 14 markets. In the UK, Tesco is the leader in the UK grocery market with 2,482 stores.
Approximately 10% of the UK population is from ethnic backgrounds including European migrants, and these
groups also have higher birth rates.
Due to the diversity of Tescos UK customer base, the World Foods line was developed which carries 1,800
products and is accessed by 5 million customers weekly. In localities with higher ethnic demographics, the World
Foods team is also involved in store design. There are trends such as price still being key, some independent
retailers purchase their stocks from Tesco, and World Foods buyers prefer packaged to fresh goods so that they can
be stored for long term use.
One third of the UK Muslim population is under 18 and two thirds under 30. Research shows that younger
shoppers prefer supermarkets. The average Muslim household is 4.2 people versus 2.2. In areas of high Muslim
demographics stores will have a halal counter, and will feature a Ramadan aisle, which is the largest event in the
World Foods calendar. This year the Ramadan product line will grow from 50 to 85, and year on year spend will be
doubled.
Malaysia was the rst Muslim country to be addressed and the market entry strategy was a joint venture in 2004.
Today 4 million customers are served weekly. A wide range of halal certied food is key, and to do this local
suppliers such as halal poultry suppliers have been sourced, and a Halal Advisory Board has been set up to steer
the company. Since Malaysia is only 60% Muslim, non-halal aisles selling products such as alcohol are segregated,
and those products are only advertised in English and Chinese.
This local approach is key. In Malaysia it will allow Tesco to become part of Malaysias plan to export their halal
products. In Turkey, the local approach is also used. To serve customers better the company has been broken into
regional groups, and stores are localised for local taste.
The global halal industry is worth USD $632bn versus the US Kosher market of USD $100bn. Currently there are
86 kosher products for every 1 halal product.
Q&A
When asked if negative PR affects Tesco in countries like the UK and USA as a result of its operations in Muslim
countries, Timothy responded that Tesco always retains a local feeling and is run by local staff. As a result, the
local aspect overshadows the international corporate nature of the business, and as such there have been no
negative repercussions.
A number of issues around establishing and diversifying the halal product line were asked: how does Tesco decide
what is halal? Why did it take so long to establish a halal line, will there be crossover products between halal and
organic and will other lines such as fashion and gifts be added to the halal portfolio which currently focuses on
food? Timothy claried that Tesco does not take theological decisions in determining what is halal, but is guided by
experts such as the steering group in Malaysia. Although he felt unable to answer the point of why it took so long
to develop halal products for the UK he commented that consumers should exercise their power to ask for products
they want. However, new developments can take time. For example, halal organic products would need to be
developed and sourced from new suppliers. Other options for diversication would also be on the table, but these
would be determined as commercial decisions on a store by store basis as dictated by customer demand.
SESSION 6: MARKETING CHALLENGES OF THE GLOBAL
HALAL INDUSTRY. WHAT MUST WE DO?
PANELLISTS:
Tan Sri Nor Mohamed Yakcop, Minister in the Prime Ministers
Department, Malaysia
Datuk Hajjah Norah Bte Tun Abd-Rahman Yakub, the Executive
Chairman of Tanjung Manis Food and Industrial Park Sdn Bhd,
Malaysia
Hajah Normah SH Jamil, Director of Agriculture and Agrifood,
Ministry of Industry and Primary Resources in Brunei Darussalam
MODERATOR: Dr Jonathan Reynolds, Academic Director of the
Oxford Institute of Retail Management, Sad Business School, University of Oxford
LOCAL AND THEOLOGICAL VARIATION VS ONE HARMONISED GLOBAL HALAL STANDARD
Tan Sri Nor Mohamed Yakcop was of the view that once a common halal brand is established and this needs
to include the criteria of shariah compliance but also encompass other points such as product quality then local
and theological variation can be easily introduced.
He dispelled ideas that Islamic nance products were particularly contentious: 98% of all Islamic nance
products are acceptable across the world. It was only the perception of variation that had to be challenged and
that this range of products and authorising bodies were just symptoms of an emerging industry, and that over time
this would become streamlined. Datuk Hajjah Norah commented that The Pope even says that Islamic banking
is the way forward because it is real, adding that global standards and authority for the halal brand could meet
growing Muslim lifestyle needs and would also dispel irrational fears held by non-Muslims that halal is connected
to terrorism.
Hajah Normah preferred to emphasise that the rst duty upon Muslims is to help other Muslims to fulll their
religious obligations to observing halal standards, and that this was the approach that the Brunei Halal brand was
adopting. Their services and facilities would be open to anyone to use in order to acquire halal certication. But
the aspiration was that this would be a particular stimulus for the development of local Brunei SMEs onto a world
stage.
ENCOURAGING CREATIVITY AND INNOVATION
All panellists agreed that there was a blossoming of creativity and innovation in the halal marketplace and that
the geographic origin was not necessarily relevant. We dont know where creativity will come from, and it doesnt
matter, commented Tan Sri Nor Mohamed. He demanded greater creativity for a bigger audience: We need to
move to a value proposition that appealed not only to 1.6bn Muslims, but to the world population of 6.8bn.
One of the challenges of the explosion of innovation, in Datuk Hajjah Norahs view, was that there were no hubs of
industry, and that there was still a huge range of bodies simply discussing what halal actually means. Her counsel
was that emerging companies should group together to build momentum.
BUILDING THE HALAL BRAND
Tan Sri Nor Mohameds view was that Muslim countries need to come together to discuss what halal really means
and to establish some kind of consensus on how to manage its perception. Hajah Normah felt that the Brunei
Halal brand was already helping individual businesses to build their commercial success by promoting a consistent
message about the halal brand to international markets. This consistency was backed up by using the same
messages about halal to local communities and mosques.
Can the halal brand be co-marketed with other brands, like kosher? asked Dr Reynolds. Datuk Hajjah Norah was
emphatic: As people of the book we should allow the kosher brand to sit next to the halal brand.
A nal note was made by the audience that perhaps overall campaigns to promote the halal brand per se
were necessary, in much the same way as other industries band together to promote all suppliers, such as the
campaigns to promote milk.
SESSION 7: THE MUSLIM WORLD TODAY: PERCEPTIONS
AND PERSPECTIVES
PANELLISTS:
Sir Iqbal Sacranie, Founding Secretary General, Muslim Council of
Britain
Dr Basil A J Mustafa, Nelson Mandela Fellow and Bursar, Oxford
Centre for Islamic Studies
Dr Walter Armbrust, Albert Hourani Fellow, Middle East Centre, St
Anthonys College, University of Oxford
MODERATOR: Mishal Husain, International Broadcast Presenter
ISLAMIC BRANDING AFFECTS MUSLIMS AS MUCH AS IT AFFECTS ISLAMIC PRODUCTS
Sir Iqbal Sacranie argued that the issue of Islamic branding affects both halal products, and Muslims and Muslim
countries. Negative media coverage makes Muslims feel fearful and want to hide. In Sacranies view one of the
responsibilities of the Islamic branding industry is to address the wider issue of negativity. How do we go about
changing the brand that people perceive about Islam? he asked.
MODELS FOR DEVELOPING THE ISLAMIC BRANDING INDUSTRY, BASED ON THEIR DIVERSITY, VALUES AND
GLOBAL PRESENCE
According to Dr Mustafa, the Islamic branding discussion must avoid lazy stereotypes of monolithic Muslims or
Islam vs. West dichotomies: Muslims are a mosaic of views on halal, on culture, attitudes, economics, poverty
and other demographics. This mosaic includes Muslims who live in both majority and minority Muslim countries.
He described the rise of coffee as a consumer product as one model for building Islamic brands. In the 17th
century it was rst introduced to Europe from the Muslim world. Some Europeans were enamoured of it, others saw
it as the sinful drink of indels. Today coffee is a highly desirable commodity. He extended the coffee analogy to
Islamic nance products: If managed properly [they] can show the same success.
ISLAMIC BRAND VALUES MUST EXTEND BEYOND THE PRODUCT AND BE PERVASIVE IN THE VALUE CHAIN
Sir Iqbal Sacranie noted that the brand of Islam must be practiced as real if Islamic products are to carry
legitimate weight. The discussion is not about creating a separate commercial ghetto for Muslims, nor is it about
polarising Islam vs. the West. This issue of social purpose for Islamic brands was echoed by Dr Mustafa who added
that there was a need for quality and social responsibility not just economic benet, and that this focus applies
to all parts of the supply chain including elements such as advertising. For example, the marketing campaign for
a truly Islamic product would not appeal to vanity or sexual attraction. Instead it would project the goodness of
values such as moderation and balance. Such a market entry strategy must avoid producing sub-standard products,
and must be accompanied by long-term investment.
A GROWING CONSCIOUSNESS OF ISLAMIC PRODUCTS IN HIGHLY SECULARISED STATES
Dr Armbrust described perceptions in Egypt that the cities which are growing are seen as no Islam areas and
do not represent living the Islamic good life. In fact the main media channels propagate the view that Egypt is
a secular state. However, the Islamic product perspective is widely seen in print, and with the increase in the
number of satellite channels, the Islamic message is getting through on TV as well. There has also been growth in
Islamiyyat books, and on the internet where there are no gatekeepers as there are in the broadcast media.
HALAL IS THE DEFAULT SETTING FOR PRODUCTS IN ISLAMIC COUNTRIES
There is a distinction to be drawn between Islamic products and halal products when it comes to Muslim
majority countries, in Dr Armbrusts view. Halal is the default expectation of consumers when it comes to food,
and halal is assumed, whereas in Muslim minority countries Muslims would expect halal food to be appropriately
marked. It is probable that food imported to Egypt is not halal, but consumers operate under this assumption that
all food in Egypt is in fact halal.
Yet some companies have distinguished themselves as promoting Islamic values, without using the word Islam.
An example is Al-Tauhid wa al-Nur (The Oneness and Light of God) which has built its brand as an ethical
company that you can trust. Although it does not use the word Islamic in its title, it is widely known that it is an
Islamic brand, having started up as an outlet for womens modest clothing.
SESSION 8: DINNER KEYNOTE ADDRESS: MUSLIMS IN
TODAYS INDIA
KEYNOTE ADDRESS
HE Shri K Rahman Khan, Deputy Chairman of the Rajya Sabha and MP Indian National
Congress
MODERATOR: Mishal Husain, International Broadcast Presenter
Shariah is a set of rules and directions to be adopted in daily life for the overall benet
of human society. The nancial world was initially sceptical of Islamic nance but now
sees it as a viable alternative. Halal products and Islamic branding will follow suit in the future, appealing to both
Muslims and non-Muslims, if we can build on the strength of the product rather than on emotion and religious
duty.
The world Muslim community has generally ignored Indian Muslims even though they are the second largest
Muslim population in the world. For example, the OIC and IDB concentrate their activities on Muslim countries, so
a small Muslim nation of two million will have a say in those forums, but a minority Muslim population like Indias
of over 200 million Muslims will have no say. Muslims in non-Muslim countries make up 20% of the world Muslim
population and so it should be noted that they will play an important role in promoting Islamic nance and other
Islamic and halal products. Further, if the Islamic world invests in resource development of Muslims in non-Islamic
countries then those Muslims will provide resources to the entire Islamic world.
Islam came to India during the time of the Prophet Muhammad and has spread across the full geographic, ethnic
and linguistic breadth of the country. Muslims are the countrys second largest religious community and are
an integral part of Indias heritage, culture and civilisation. Kashmir is the only majority Muslim state. Muslim
minorities in other states vary from 5% to 35%, and the states of Uttar Pradesh, West Bengal and Bihar constitute
nearly 74% of Indias Muslim population.
A number of historic factors such as partition, successive governmental neglect and lack of the communitys own
initiative have led to Muslims poor economic and political representation. The current government is taking steps
to change this in line with the growing recent economic activity in the country. A large Muslim middle and upper
class is emerging as a powerful economic and political entity, making up 15% of this segment of nearly 500
million. They spend their income on consumer goods, food items, domestic appliances, housing, jewellery, apparel
and healthcare products offering a big market for halal products.
India has a thriving import-export market, and apart from China is the only market to avoid the recent global
economic meltdown, keeping a GDP growth rate of 7 8%, expected soon to reach double digits.
Indias constitution provides wide freedom to religious minorities. It has the largest number of madrasas and
mosques in the world, and the government allocates Rs. 200 billion annually to 150,000 hajj pilgrims, along with
educational scholarships to Muslim minority students. India has three Muslim presidents, several chief ministers
and cabinet ministers at central and state level and a Muslim Chairman and Deputy Chairman of the Upper House.
Riots, discrimination and harassment do occur but these are inevitable in any multicultural society, and are not
conned to Muslims.
The Muslim market must be targeted through identifying niche markets with potential areas for success in
marketing, modernisation, training and welfare. Examples are brass, copper and glass-work, silk, wood and carpets,
tourism, sheries and rubber as well as halal meat and chicken.
Along with opportunities in traditional industries, there are newer arenas such as IT, and ITES (IT Enabling
Services). Azim Premji is a leading entrepreneur having created the global IT company Wipro. Other areas for prot
and community upliftment include educational infrastructure, setting up of innovative Universities of Science
and Technology, distance education based on modern IT and communication methods and development of mass
media, particularly FM and TV stations oriented to the Muslim population such as Urdu E.TV.
WAKF Property development, on the principles of Build, Operate and Transfer are also open to investment with
100,000 commercially viable properties waiting for development. The land is available free to construct on, and
the investment required for building is only 30%, offering high returns and also long term community benets.
Muslim entrepreneurs, industrialists and real-estate investors are also being encouraged to turn their businesses
into corporations to better access national and global markets, and to this end, efforts are being made to establish
a Muslim Chamber of Commerce and Industry. These initiatives stand side by side with efforts for a master plan
for the socio-economic and educational upliftment of the Indian Muslim community in sync with the National
Five Year Plans of the central government. If the global Muslim community gets involved in this, it will make a
tremendous impact on one of the worlds largest Muslim populations.
SESSION 9: THE FUTURE OF ISLAMIC FINANCE:
TRENDS, GROWTH, INNOVATION
KEYNOTE ADDRESS
Afaq Khan, CEO Standard Chartered Saadiq
PANELLISTS:
Afaq Khan, CEO Standard Chartered Saadiq
Usman Hayat, Director Islamic Finance and ESG Investing,
CFA Institute
Walid Sarieddine, Head of Islamic Finance, Sumitomo Mitsui
Banking Corporation
M Iqbal Asaria, Associate, Afkar Consulting Ltd
MODERATOR: Paul McNamara, CEO and Editorial Director,
Yasaar Media
THE FUTURE OF ISLAMIC FINANCE
Afaq Khan
There are more than 1000 Islamic nancial institutions over ve continents, but only 8% of the global Muslim
population of 1.4bn is being served by Islamic nance products. Shariah compliant assets are estimated at
USD$1trillion with asset and revenue growth rates of 32% and 44% respectively since 2003, encouraged by
support from regulators. The industry is expected to double in ve to seven years and reach USD $2 trillion.
Further growth will be fuelled by product innovation. 80% of global Islamic nance assets are in the GCC and Iran
which comprise 6% of the Muslim population. (Sources: Bankscope and Oliver Wyman analysis, Thomson Reuters
Lipper.) In 2008, the estimated size of Islamic banking assets were: Saudi Arabia 60%, Kuwait 35%, Qatar 26%,
UAE 15%, Bahrain 10%, Malaysia 20%, Pakistan 4%, Indonesia 2%. (Sources: Islamic Finance Outlook 2010 by
Standard & Poors; Saudi Arabia percentage is based on Standard Chartered estimation; State Bank of Pakistan).
The UK is seen as the European hub for Islamic nance, with the rst fully-edged Islamic bank in 2004.
Germany opened its rst Islamic bank in 2010, and with ve million French Muslims there is increasing demand
in France. Hong Kong is seen as a bridge for Islamic nance in China. There is untapped potential in Africa
with unexploited raw markets, and negligible presence of Islamic banks to cover the populations needs. There
have been efforts from central banks in Nigeria, South Africa and Kenya to promote Islamic nance through new
regulation.
Non-Muslim countries are also interested in Islamic nance as they want the most efcient use of capital and to
facilitate their own growth they need to engage with the commercial opportunity of Islamic nance in the Muslim
world. New nancial instruments are being developed, and conventional banks are opening up to Islamic nance.
Ethics is critical in Islamic nance. There is a ban on riba (usury), on gharar (uncertainty in contracts) and
on maysar (gambling, short-selling). Also prohibited is investment in detrimental industries like gambling and
pornography. Other ethical values to be supported are encouragement of savings, job creation, and equality of
rights and obligations between lenders and borrowers. The emphasis is collective benet to wider society rather
than the pure pursuit of short-term prot. Islamic business ethics reect the moral principles and standards
that Muslims must follow. In view of the increasing global inuence of Islamic nance, companies aiming to do
business with shariah-compliant organisations should gain some understanding of their guiding principles and
ethics.
Trends in the industry include the move from simple to complex products designed to support aviation, shipping,
project and structured nance, hedging and investment products, FX rates and commodities hedging solutions.
There are also industry bodies promoting standardisation. Also we see windows for tremendous investment ows.
Pension and sovereign wealth funds such as GCC SWFs are the biggest among Arab countries and are managing
around $1.4 trillion. Most of their investments are directed towards conventional products/transactions. They could
be attracted to invest in shariah compliant assets to boost the Islamic nance industry.
There are a number of challenges: disparate shariah opinions, a lack of qualied Islamic bankers and shariah
advisors and the need to grow and expand to attract and absorb sovereign wealth fund investments.
PANEL DISCUSSION
Sarieddine immediately tackled the accusation that Islamic banking simply mimics conventional banking. Both
are human functions he commented, and so similarity should offer no surprise. He added that Islamic banking is
an evolutionary concept, and it is only recently that we have seen the modern international application of general
nance principles rooted 1,400 years ago.
Asaria discussed the idea that the value proposition for Islamic nance must be presentable to those who do not
share Islamic beliefs. Trade with the Muslim world on terms that the Muslim world operates on has been done
historically, so could be done so again.
Hayat asked whether the Islamic nance industry should be branded ethical or Islamic.. This was an issue only
in multi-faith countries, he noted. Where Muslim minorities were small, ethical branding might open up the
marketplace to more consumers. But Islamic has a more restrictive denition than ethical excluding industries
such as alcohol which ethical investors might not object to. And more philosophically, it depends what you mean
by ethical just as much as it depends on what you mean by Islamic as to whether the two overlap.
Khan added that when Standard Chartered was naming its Islamic banking division, they went through a process
to nd a name which resonated with their values that Muslim populations could relate to, and which wouldnt
need local language translation. They asked themselves What are we promising? What do we want to stand for?
and chose the name Saadiq (truthful). Sarieddine noted the opposite trend with Qatar International Bank that has
recently changed its name to Qatar Islamic Bank, and actively uses the word Islamic.
All the panellists noted that levels of knowledge and perceptions amongst consumers varied considerably. Asaria
felt that some consumers saw Islamic nance simply as qard e hasana, a good loan. Such consumers needed to
be educated that Islamic nance is nonetheless a prot making enterprise. Hayats view was that some terminology
has multiple meanings causing confusion to the consumer. The word interest is an example used in different ways
by the bank and the consumer. Khan suggested that the rst step to gaining consumer condence would be to
introduce them to the religious scholars on the board of the organisation as this ultimately will affect their trust in
the organisation.
SESSION 10: INNOVATIVE GLOBAL MARKETING
DEVELOPMENTS
KEYNOTE ADDRESS
Tan Sri Dato H Muhammad-Ali, President and CEO, Johor Corporation on Islamic Entrepreneurship
PANELLISTS:
Tan Sri Dato H Muhammad-Ali, President and CEO, Johor Corporation
Mohamed El-Fatatry, Founder and CEO, Muxlim
Ra-uddin Shikoh, CEO, The DinarStandard
Layla Mandi, CEO and Founder, OnePure Halal Beauty
MODERATOR: Dr Pegram Harrison, Fellow in Entrepreneurship, Sad Business School, University of Oxford
ISLAMIC ENTREPRENEURSHIP
Tan Sri Dato H Muhammad-Ali
Wealth is not evenly distributed globally resulting in a rich-poor divide, and people feel angry
as the system only seems to serve the rich. To the poor it feels like westoxication that
is to say that wealth creation is both intoxicating and toxic. The capitalism is corrosive, and
greed and moral indifference dene todays corporations. The circumstances that demand
Islamic entrepreneurship already exist: mass poverty, global divides, conicts and crises,
global resource grabs, multinational companies global domination, climate change and
westoxication. To do nothing about all of these is not an option.
For entrepreneurship to be Islamic it cannot just copy conventional models because of the risks that it will bring
with it. Conventional entrepreneurship is often uncaring, unsustainable, greed-driven, crisis-prone, damages
ecology and is exclusive to those with access to capital and networks. To address the latter we need to address the
issue of how to encourage entrepreneurs from people with the lowest levels of capital and networks. For example,
the approach that Johor Corporation has taken is to grow Muslim Malay entrepreneurs in order to bring them up to
the level of the mainstream.
One factor in this discussion that has not been raised before is the shape and role of the corporation. In many
Muslim countries, the model of the corporation is copied blindly, but although it has some good things, it has
problems too, and we shouldnt jump on the bandwagon without evaluating the risks.
Islamic entrepreneurship must be sustainable. Britains fourth richest woman Anita Roddick is a pioneer of
green capitalism capitalism with a conscience, however, she described turning her business into a corporation as
a pact with the devil.
Is Islamic entrepreneurship a valid and relevant concept? The answer is an obvious yes when we think of
example segments like halal and Islamic banking. But it is even more valid when we consider the Muslim
predicament: again mass poverty, internal divides, westoxicated, lethargic, fossilised, economic powerlessness,
endless subjugation and violent extremism. By contrast, Islamic entrepreneurship brings wealth creation and value
enhancement. Wealth is rahmah (mercy) for life on earth and a spiritual source of energy and motivation. The
Prophet said 90% of livelihood comes from business. Thus, the risk-taking of entrepreneurship is in fact a form of
rizq-taking. (taking of livelihood allocated by God). Further, it is a way to move away from violent extremism.
For all these reasons we can consider Islamic entrepreneurship as a form of business jihad which is a
controversial term! But then being an entrepreneur is all about taking risks! Johor Corporation has demonstrated
in business and corporate practice that the principles of Islamic entrepreneurship are feasible and do-able. Johor
Corporations business jihad has two principal objectives: to prosper the community and drive economic growth,
and second to create a just, equitable and compassionate society through adapting best practice to Islamic ways
and institutions. The critical success factors are an entrepreneurship strategy and an organisational strategy such
as a waqf corporation.
Johor Corporation was started in 1971 with a RM10 million loan. It has 65,000 employees, 8 PLCs and RM8.4bn
turnover. One of the organisations goals is to develop 2,500 young entrepreneurs by 2020, from SME to MNC.
Muslims are no less entrepreneurial, however their businesses are not organised. For example, 95% of Middle East
businesses are family owned (source: PWC 2004). Though highly protable only 6% lasted to the third generation,
and only 2% beyond that.
Islamic entrepreneurship is a higher cause than business: it is sustainable reform, business renewal and it is
community-centric.
INNOVATIVE BRANDING AND MARKETING DEVELOPMENTS
Mohamed El-Fatatry
Muxlim is the largest global Muslim Lifestyle network since 2008, with over 20 million visitors per year from 190
countries and 20 million monthly ad impressions. Based out of Finland it won the Internationalisation Award of the
President which was won by Nokia 10 years ago, but has never been won by a start up or immigrant before. The
award is a recognition of the global Muslim market as a massive opportunity.
Muxlim aggregates content across web, mobile and TV with key markets in Europe and North America due to its
English language medium. It is social media driven, not editorial driven. The USA and non-Muslim markets can
see Muxlim as a way to enter Muslim markets. The company started as a consumer facing business but has since
diversied into B2B after it was approached for consultancy on addressing Muslim consumers. Muxlim offers four
components: analyse the market; offer a bridge by dening strategy; identify the channels to execution and deliver
results.
INNOVATIVE MUSLIM BRANDS/OPPORTUNITY GAPS
Ra-uddin Shikoh
Not one of todays top global brands is from a Muslim country. Nor is any such company on the list of 28 most
reputable companies. But many exciting brands are emerging from across the Muslim lifestyle, Islamic nance
and OIC markets. To realise full global potential of Muslim brands, they must nurture the unique Islamic soul,
rehabilitate an innovation culture and develop competitive, marketing and innovation practices. Bateel (gourmet
dates) is an innovative Muslim food brand creating new positioning based on a traditional product. In New York,
the Halal Cart is seen on every street corner now. In fashion, Shukr blends faith with fashion. In travel, Tamani
hotels offer alcohol free premises with women only oors.
Muslim brands must think big in three ways: Global value proposition with inherent Islamic values, Muslim lifestyle
market optimised products, and global business solutions. Innovation is being held back in Muslim companies by
fear of failure, small thinking and a lack of critical thinking. There are two major gaps in branding and marketing:
disingenuous brand identity and a relative lack of marketing investment.
ONEPURE HALAL BEAUTY
Layla Mandi
OnePure is an Islamic beauty brand targeted at non-Muslims, and has been accepted in international markets such
as Gallerie Lafayette and Saudi Airlines. The entire product chain is shariah-compliant. A halal product also must
be innovative and better than its competitors at all levels. OnePure does not advertise that it is halal on the label,
but is positioned in a premium space so its halal message can be explained clearly to consumers.
Luxury halal brands must be innovative, creative, unique and appealing. They must have consistent delivery of
premium quality, tightly controlled distribution, a distinct brand identity, a global reputation, emotional appeal,
premium pricing and high visibility. Halal beauty is an untapped market combining commercial opportunity
targeting afuent Muslims, with social benet. Today, Muslims lack information and transparency about their
beauty products, many containing haram ingredients. The halal beauty industry also needs Imams to discuss
current issues with their congregations. Politicians must also understand these issues to provide peace of mind and
security to their communities. Individuals should write to magazines, articles, blogs and newspapers requesting
guidance and clarity on these subjects.
PANEL DISCUSSION
The panellists addressed the various struggles that face
entrepreneurs. Tan Sri Dato H. Muhammad-Ali tackled the idea
that in South Asia business is seen by Muslims as a negative
matter, something that is worldly and so the challenge is to change
perceptions. That is why the idea of business jihad is powerful,
because it reminds Muslims that business is a religious duty. Dr
Harrison noted that promoting the success of Muslim brands by
developing case studies of those businesses and promoting them
in mainstream forums was something that they were focused on at
the Sad Business School, and he invited the panellists to work with
him on producing case studies of their own businesses.
El-Fatatry told entrepreneurs that obtaining funding is challenging, and what they need to build is an ecosystem of
partners of which he felt there was a lack although he warned of ensuring that partners did not have different
agendas of their own. Entrepreneurs need to nd the right talent that has the passion for what you are doing.
El-Fatatry elaborated on Muxlims own business approach, outlining that the model was to integrate the Muslim
experience wherever Muslims go on the web. Muxlim has an exclusive agreement with Nokia as the only provider of
Muslim lifestyle content. He also commented that Muxlim was committed to upholding the moral fabric of young
people who use the site and works to support and promote other companies working in this area by supporting not
replicating their work. However, he added that their initial model had been consumer-centric, working towards a
pay-to-use service, but due to changes in the market, and a lack of long-term investment Muxlim has changed its
model to B2B and now generates more of its revenue from advisory services.
The panellists were asked where they thought Islamic commercial entities should draw the line in promoting
products that may not be good for consumers, such as fast food with high salt content. Mandi responded that
the business you engage in shows your stand on those issues, adding that her business did not engage in such
activities. Shikoh felt that if the product doesnt live the soul of Islam then it is not the right brand. Islamic
nance is worth USD$1 trillion, but where is the soul of the business? he asked. Tan Sri Dato pointed out that
when you come into the market late, the quickest thing is to ride on other peoples brands in order to give you
access to resources, and then at the same time, you have to start aligning yourself with Islamic values, otherwise
this is not business jihad.
El-Fatatry echoed this latter approach with his feeling that the way to persuade existing large corporations to
work with something that has Islam in the title will be to have extensions to existing brands. More data about
the benets of such an approach would be needed to prove the business case for this strategy. However, Shikoh
pointed to the example of the charity Islamic Relief which has become a mainstream brand due to the service it
delivers, even appearing on the news ticker on Fox News during the Hurrican Katrina disaster.
Mandi offered some advice specically to female Muslim entrepreneurs: to be persistent and patient, to stick with
your vision, to be consistent, dont expect success in year one, and also dont expect the journey to be easier just
because you have a halal brand.
SESSION 11: REACHING THE MUSLIM MARKET:
OPPORTUNITIES AND CHALLENGES
KEYNOTE ADDRESS
Roy Michel Haddad, Chairman and CEO, JWT Middle East and North Africa
PANELLISTS:
Roy Michel Haddad, Chairman and CEO, JWT Middle East and North Africa
Sarah Joseph, Concept Creator of Muslim Lifestyle and one of the worlds 500 most inuential Muslims
Javed Husain, Co-founder and Director of Media Reach
MODERATOR: Linda Scott, Professor of Marketing, Sad Business School, University of Oxford
KEYNOTE ADDRESS
Roy Michel Haddad
At 1.57bn, Muslims are more than one fth of the world population. 30% are under
14 compared with only 1820% in western markets. But we must be wary of collective
assumptions that Muslims are a homogeneous whole, or that such a thing as a Muslim
consumer exists. There is no single Muslim consumer, only a consumer to whom we have
to respond, who has wants, needs and desires. Ramadan is the only time that the Muslim
consumer exists. Instead we must ask, can these consumers be reached based on their
Islamic identity despite cultural and geographic differences? This opportunity of unmatched
scale has nally made the halal economy be noticed.
JWT commissioned the rst commercial research into sizing the Muslim market. The aim was to identify the
common values at the markets core in order to create relevance for the community at large with the ultimate
goal of ne-tuning propositions across regions and countries. Can we segment the Muslim world into groups
that brands can be anchored on? he asked. After all, building global brands Islamic or otherwise is about
scalability. No brand can be all things to all people. The research focused on the eastern hemisphere where Islam
is the predominant religion, using a mix of qualitative and quantitative techniques combined with observations of
the macro environment. Five attitudinal clusters emerged based on Geert Hofstedes cultural dimensions.
Social Conformists (19%) believe social norms should be adhered to even at the cost of personal choice. They
lack self condence and rely on others for decisions. They are not religious and feel positively about Western
values. Religious Conservatives (17%) follow and expect others to follow religious practices, which always
override personal choice. They are anti-media and information averse. They support gender segregation. They are
not brand conscious. Pragmatic Strivers (24%) are non traditional and ambitious, open-minded and willing to
compromise on religious values in order to get ahead. Extreme Liberals (21%) are independent and assertive
and not particular about tradition or religious practices. They will explore options even if they do not conform to
religious or societal norms. New Age Muslims (19%) are traditional and religious but do not expect others to be
so. Whilst religious, they believe in gender equality, are pro-media and pro-Internet.
This analysis produced some surprising revelations. The need for respect of individual opinions is considerably
higher than the need of belonging to a group or sharing group views. 90% of all respondents think its good that
todays generation voices opinions they strongly believe in. 79% believe the media is responsible for making
todays generation smarter. 72% of Saudis believe traditional practices need adapting to changing times. Saudi
Arabia has the highest rate of role models that are businessmen, twice as high as the UAE, and Iran has the
second lowest rate of religious role models. 83% of Pakistanis want to be part of a social group where they can
voice their opinion.
There is a tension between local and international brands. 68% see local products now as good as imported
ones. And if the quality matches, the local product is preferred. But if quality fails, so does the brand. Brands
must combine fashion with personal values. Saudis are the trendiest consumers. And consumers are increasingly
fashion conscious. Examples include the growth of Islamic fashion festivals, and an estimated market size for
female Islamic clothing of 250 million women. In the Islamic nance industry assets exceed USD$750bn
worldwide with 15% growth p/a (source: McKinsey & Co).
The lack of creativity is the main barrier to addressing the Muslim market, resulting from a lack of understanding
of Islamic culture. Marketers abuse the arch and crescent as if they were all that Islamic culture has to offer. But
Islam places great weight on beauty God is beautiful and loves all that is beautiful. Islam has always sought
means of creative expression.
Stereotypical creativity is a source of shallow symbolism, alienates Muslims from their society and is no longer
aspirational. We must move beyond the clichs of being Muslim and focus on the mindset not the practice. The
goal is not to act as Muslim but help consumers live and grow as Muslims. We must be mindful of the culture,
differences, commonalities and nuances. Although values evolve very slowly, the way to express them changes
all the time. We must continuously track these modern ways that Muslims are nding to move beyond traditional
expressions.
PANEL DISCUSSION
Husain felt that it was interesting that the debate about Islamic
branding being hosted by the Forum the rst of its kind was
being held in the West rather than the traditional Islamic lands of
the East. He identied the success factors for marketing to Muslims
as sticking to the core Islamic values; as knowing the heart and
soul of the community and being immersed in the community. The
missing factor in his view is purity. Speaking of the agency that
he co-founded, he spoke of the ethical principles that drove it,
and then the subsequent realisation that those principles equated
to halal. A brand that serves, is a brand that lasts, he stated, and so the aim was not to exploit the Muslim
consumer, but to release them.
Joseph explained how she had created the notion of Muslim lifestyle as a way to embody the hopes, dreams and
aspirations of that lifestyle starting even from the name EMEL. Before the creation of this concept, Muslims were
seen through a specically political or religious framework, but not as a holistic lifestyle. In her view, the challenges
facing the development of this market included a lack of information, talent and passion. In particular, as soon as
talent is trained, it walks. There is a conict with geo-political issues. There is also cynicism about whether this
market wants to be approached, and what it will think especially because Muslim consumers either think that
Islamic products are substandard, or that Islamic branding is promoting consumerism. The challenge is to educate
consumers and to avoid the creation of technically halal products that miss the point. Being at this leading edge
of development is expensive, and investors should not be fooled into thinking the big numbers that were being
quoted are one market rather they comprise lots of markets with great variation. However, the unifying factor was
that values do travel across sectors whereas cultures do not. Much of the groundwork for these values has already
been laid by the development of the ethical industry, the green movement, animal welfare and so on. The halal
market is not the big idea said Joseph. Instead we need to focus on the big ideal of sustainable industry.
SESSION 12: ANTICIPATING THE FUTURE: WHAT ARE
THE FUTURE TRENDS IN GLOBAL MUSLIM MARKETS?
HOW SHOULD WE PREPARE FOR THE SHAPE OF THINGS
TO COME?
KEYNOTE ADDRESS
HE Shaukat Aziz, Former Prime Minister of Pakistan
PANELLISTS:
HE Shaukat Aziz, Former Prime Minister of Pakistan
Arif Zaman, Advisor, Corporate Governance, Commonwealth Business Council
Shah Hakim Zain, Group Chief Executive Ofcer, Scomi Group Bhd
MODERATOR: Andrew Critchlow, Middle East Managing Editor, Dow Jones
KEYNOTE ADDRESS
Shaukat Aziz
The Muslim ummah is a great business opportunity, with a population greater than
1.8bn, and projected to reach 3bn 30% of the world population by 2050. Most
Muslim countries are emerging markets with high economic growth, resources such as
oil, and increasing consumer condence. To maximise economic growth good governance,
transparency, rule of law, the growth of the social sector, justice and reform in the role of
women are requirements. Many Muslims live in non-Muslim countries as well as Muslim
ones. Muslim markets have unique needs which also offer up unique opportunities, and so
the issue of marketing becomes signicant. The three main areas are: food, nance and personal care.
When it comes to food and personal care, halal products should be mainstreamed. This broader approach will
build economies of scale resulting in better products and lower prices for consumers. However, some specically
niche products will continue to be necessary, such as prayer mats. With regards to Islamic nance, Muslim markets
will always require some form of shariah-compliant products but these must be world class, and the ability to
regulate them is paramount. Islamic nance products and conventional nance products should be run in parallel
so consumers are free to choose.
At a global level, Islamic marketing and branding must be part of the work to tackle terrorism. Deprivation is the
most likely root cause of terrorist acts lack of income, justice, freedom, peace and harmony. A worrying trend of
increasing divisions between faiths is taking root. Islam encourages peace, harmony and tolerance. Not terrorism!
Only through good leadership and efforts from each individual can this be tackled.
PANEL DISCUSSION
Shah Hakim noted that consumers think that halal refers simply to food. A global standard
for halal certication like a CE mark would address this issue and make halal a household
term across a wider product range. This would also avoid the peril of Islamic brands
becoming pigeon-holed to Muslims only. However, neither should Muslim companies
expect Muslim consumers to favour them simply for being Muslim. They may be more open
initially, but they will not tolerate poor performance.
Zaman suggested moving beyond branding to reputation. In the commercial world, as in
Islam, it is perception of character not logos that is important. Five points are critical:
reputational risk, standards and policy engagement, business schools including more study of the Muslim world,
the professional Muslim diaspora being harnessed to help improve the image of Islam and nally, he cautioned
that companies taking Islamic brands into non-Muslim countries must understand negative perceptions of Islam in
those markets.
Critchlow asked What makes a company Islamic? Zain distinguished products aimed at the Islamic market,
from those owned by Muslims. The company needs to decide on its target audience, and package its products
accordingly. HE Shaukat Aziz was clear: if a company is world-class then the question of compromising Islamic
values does not arise. The free market approach will determine success companies must give customers what
they require with professionalism and high standards.
Critchlow raised other signicant trends in the Middle East which affect perceptions of the region, such as ongoing
political risks, the ow of capital out of wealthy Arab nations and the notion that Arab Muslim youth are being
radicalised.
SESSION 13: RELIGION, CULTURE AND BRANDING:
THE IMPORTANCE OF UNDERSTANDING AND THE
CHALLENGES OF ENGAGING A GLOBAL MULTICULTURAL
WORLD
KEYNOTE ADDRESS
HRH Raja Dr. Nazrin Shah, Crown Prince of Perak, Malaysia
INTRODUCED BY:
Dr A Al-Akiti, KFAS Fellow, Oxford Centre for Islamic Studies and Lecturer in Islamic
Studies, Faculty of Theology, University of Oxford
Growing commercial opportunities can bind Muslims and non-Muslims in a common
humanity even though until now religion has long been considered taboo in mass
marketing. Muslims are a growing economic force and the demand for shariah compliant products continues to
grow from todays USD$ 2.1 trillion (source: Ogilvy & Mather). Internationally, multiculturalism brings increased
global output and efciency in the world economy. Nationally immigration drives politics as new arrivals are blamed
for disrupting civil society, being a tax burden and lowering wages. Their presence raises fears in host communities
of loss of self-identity, shown in Europes response to its Muslim minorities. Multiculturalism posits people of
different cultural backgrounds to have free choice in how they live but national policy makers are concerned with
forging a community of shared values and cohesive societies. The challenge: to reach a balance between the two.
Since Independence in 1957 Malaysia travelled the multicultural path towards nation-building through ethnic
and religious cleavages, recently arrived immigrant communities with uncertain loyalties, poverty, insurgency and
external threats. Religious tensions do exist and are exacerbated by coinciding religious, ethnic and economic fault
lines. Integration not assimilation is the approach. Our success is built on celebrating not suppressing religious
diversity, and on political wisdom, sound economic policy, effective security strategy and good public governance.
Religious diversity and national unity are not incompatible, but enrich each other. We see this in thousands of
mosques, churches and temples across the country, and public holidays for each major religious and cultural
festival.
One third of all Muslims live as minorities in multicultural societies. (source: Journal of Muslim Minority Affairs)
with greater focus on those in Europe and the US since 9/11. They struggle with questions of identity and
challenges to retain their faith while integrating into sometimes hostile societies, often leading to alienation from
both. Negativity towards Muslims exists in the West, with trends such as the Swiss minaret ban and anti-burqa
sentiment in France. In 2006, 63% of British, 87% of French and 88% of Dutch believed Islam to be the religion
most prone to violence (source: John Esposito in The Future of Islam.). Such hostility has prompted some
religious leaders to discourage integration. Such discouragement from both sides only leads to further alienation
as seen in the rioting in French ghettoes in 2006. Instead, religious leaders should use their moral authority and
religions message of peace to come to the fore of national and global affairs, and preach the Quranic message of
multiculturalism: O humankind! We have created you male and female, and have made you nations and tribes so
that you may know one another. The noblest of you, in the sight of God is the most pious.
Political negativity can spill over into commercial negativity towards Muslims brands, making it difcult for
Islamic products to penetrate Western markets. Muslim businesses already in the West are well-placed to counter
such negativity due to the ethical underpinnings of their businesses allowing them to act with corporate social
responsibility (CSR). Porter and Kramer argue that CSR offers four business benets: reputation, license to
operate, moral obligation and sustainability. The rst two are typically public-relations exercises, but the latter two
prompt a company to reconcile prot making with greater social good, principles on which Islamic businesses can
excel.
The Islamic nance industry is an example of potential growth and challenges for marketing Islamic products to
non-Muslims. Industry growth is 1520% p/a and there are 300 Islamic banks and rms in 75 countries. Non-
Muslims are not interested in Islamic theology and in some cases it can even be off-putting, such as the Dubai
Port Authoritys acquisition of some US ports through the purchase of BP and Oriental Steam Navigation. The
USD$3.5bn Islamic bond used to nance the purchase was seen as a threat to US security. Instead by eschewing
Islamic jargon and building good products which are prized by everyone without labels being necessary - the
industry can claim Islamic nance is sound nance as it avoids the excessive risk-taking that precipitated the
recent global crisis.
How far should we pursue segmentation on religious lines, if the Islamic brand proves a turn-off for non-Muslims
or if it causes other religious responses, such as Stoxx Europe launching a Christian stock index? We must be
cautious of the inherent dangers of widespread use of faith-based brands which in the worst-case scenario could
feed into Huntingtons polarising clash of civilisations thesis. We should heed the advice of the 12th century
theologian Ghazali: There is no need to quibble over brands, once the point is understood!
SESSION 14: CLOSING REMARKS
CLOSING REMARKS AND FORUM REPORT
Dr Paul Temporal
This inaugural forum on Islamic branding and marketing was a delightful and multicultural event, and it is hoped
that it will be the rst step towards developing great brands together.
A number of themes have featured repeatedly throughout the two days, highlighting that there is a huge amount of
interest in this area and a wide range of topics to be explored, all of which generate disparate views and opinions
a reection of the Muslim world today.
A number of points in particular have been reinforced. Islam is one great religion, but not one homogenous market.
The global Muslim audience is a kaleidoscope of many multiculturally diverse countries, rich and poor, majority
and minority markets where consumers behave very differently, and this fact gives rise to many marketing and
branding challenges that have been pointed out by speakers and in the ensuing debates. But this variety also
creates massive opportunities. We have heard from people who have taken on such challenges and succeeded in
seizing those opportunities.
The forum has echoed our own research over the last two years that much more information is required, and much
more expertise needs to be found.
We hope that this inaugural forum that is to say I hope that there will be another such forum - has added value
and impetus in this area. We hope that you have enjoyed the forum. On our side, we will continue with our research
and education in this area, and we hope that many of you here will join with us as partners and contributors in this
area to drive it forward.
FAREWELL
Richard Briant, International Director, Sad Business School and Chair of Day 2 of the Oxford Global Islamic
Branding and Marketing Forum 2010
Id like to thank all our speakers for profound and valuable insights. Our gratitude goes to them, and the
moderators who have encouraged and facilitated excellent dialogue. In addition, our thanks to the individuals at
Sad Business School who have helped us prepare for and deliver this conference. In particular to be mentioned
are Clare Ruthven-Stuart who have been leading the team, Firoz Abdul Hamid who has been a strong bridge with
Malaysia, Allen Lai for keeping order, Paul Temporal for his research that led to this forum. In addition, thanks
are due to our sponsors, and of course to the delegates who have attended this conference, for their presence and
participation.
PARTNERS
TANJUNG MANIS
SARAWAK MALAYSIA
HALALHUB
Lead Partners Major Partner Associate Partners
Media Partners Supporting Partner
WWW.SBS.OXFORD.EDU
Sad Business School
University of Oxford
Executive Education Centre
Egrove Park
Oxford OX1 5NY
United Kingdom
www.sbs.oxford.edu/islamicmarketing
Tel: +44 (0)1865 422900
OxfordIslamicMarketing@sbs.ox.ac.uk
2010 SAID BUSINESS SCHOOL. PHOTOGRAPHY BY GREG SMOLENSKI [WWW.PHOTOVIBE.NET]
SAID BUSINESS SCHOOL
The Sad Business School is one
of Europes youngest and most
entrepreneurial business schools.
An integral part of The University
of Oxford, the School embodies
the academic rigour and forward
thinking that has made Oxford a
world leader in education. The
School is dedicated to developing
a new generation of business
leaders and entrepreneurs and
conducting research not only into
the nature of business, but the
connections between business and
the wider world.
RESEARCH AND EDUCATION
PROJECT ON ISLAMIC
BRANDING AND MARKETING
The Sad Business School
Research and Education Project
on Islamic Branding and Market-
ing welcomes contributors and
partners who are interested in
playing a role in understanding
Islamic branding and market-
ing. As well as combining the
resources of Sad Business School
and the wider University, experts
and interested parties from the
global private and public sector
are encouraged to take part in the
research and the building of case
studies for educational purposes.
For more information, see:
www.sbs.oxford.edu/islamicmarketing

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