Oxford: Innovative Muslim Market Brands & Opportunity Gap: Oxford University Global Islamic Branding Forum

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Presentation on Innovative Muslim Market Brands & Opportunity Gap at the Inaugural Oxford Global Islamic Branding & Marketing Forum, July 2010

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Oxford: Innovative Muslim Market Brands & Opportunity Gap: Oxford University Global Islamic Branding Forum

  1. 1. Innovative Muslim MarketBrands & Opportunity Gap Presented at: By: Rafi-uddin Shikoh E: rafishikoh@dinarstandard.com W: advisory.dinarstandard.com 1
  2. 2. Most Innovative Companies & Respected Global BrandsMuslim Markets*  ¼ of the world  Barely any Global Innovation/Brands? Companies built on trust and admiration Source: Reputation Institute*All logos are sole properties of respective organizations 2 © DinarStandard 2005-2011
  3. 3. Emerging Muslim Market Innovations/ Brands 3 Key Opportunity Areas MUSLIM LIFESTYLE MARKET: OIC* Economies: US$ 2 trillion+ ‘Halal’ consumer market US$ 7.6 trillion, ‘09 GDP Growing segments: Growing sectors: • Food, • Transportation • Fashion, • Food & Agriculture • Recreation • IT Telekom • Travel • Healthcare/ Pharma • Education, • others • Health, • Other ISLAMIC FINANCE US$ 1 trillion, 15-20% growth/yearGrowing segments:• Investment Banks/PE Firms,• VC Firms• Retail Banks• Insurance Companies• Other *57 OIC (Organization of Islamic Conference) member countries © DinarStandard 2005-2011 3
  4. 4. Innovative Muslim Market Brands & Opportunity GapTwo Objectives today Share Examples of Innovative 1 Muslim Market Brands Strategies for 2 Big Thinking - Global Leadership 4
  5. 5. Muslim Market Innovations/ BrandsFirst: Innovation Defined• Implementing new ideas in a commercially viable way.• Types of Innovation: • Product: Ebay • Process: Dell • B-Model: iPhone - iTune • Cust.Service: Zappos • Positioning: Nike*All logos are sole properties of respective organizations 5 © DinarStandard 2005-2011
  6. 6. OIC* Economies: Innovative Brands Leading & Innovative Examples Consumer Brands of the Top 100 Companies of the OIC (from DinarStandard‟s DS100 Ranking) Select Innovative Brands Finance: Transportation Food: Education: Hospitality: Media:*57 OIC (Organization of Islamic Conference) member countries*All logos are sole properties of respective organizations © DinarStandard 2005-2011 6
  7. 7. Muslim Lifestyle Market: Innovative Brands Food Sector Examples Bateel: A Gourmet Date Experience HQ: Riyadh, Saudi Arabia ; Employees: 550+ Offers more than 20 varieties of high quality dates Locations: 25+ outlets: including Dubai, Riyadh, and chocolate. Recently launched a series of Amman, Riyadh, Mumbai, Delhi, Kuala Lumpur, Café‟s across its main markets. London. Others:Image source: Bateel website; 7*All logos are sole properties of respective organizations © DinarStandard 2005-2011
  8. 8. Muslim Lifestyle Market: Innovative Brands Fashion Sector ExamplesSHUKR: Putting faith into fashion “Aspires to be a model Islamic business…fairLaunched 2001: “contemporary modest clothing” trade, ethical labor practices, pursue a path offor a new generation of Muslims living in the perfection by producing clothing of the highestWest. Prides having non-Muslim loyal customers. standards, and avoiding interest-based financing. . Others: Bahrain‟s Al-GassraImage source: Shukr website 8 © DinarStandard 2005-2011*All logos are sole properties of respective organizations
  9. 9. Muslim Lifestyle Market: Innovative Brands Travel & Hospitality ExamplesTamani Hotels & Resorts, Dubai A hospitality and leisure management division of KM“Dedicated Ladies floor, Is alcohol free, Properties, which is the real estate developmentserves halal food, patron of Islamic art, and division of Dubai based KM Holding. Had announced adonates a %age of profits to charities.” US $2.3 billion Islamic-compliant real estate fund. Others:Image source: Tamani website 9 © DinarStandard 2005-2011*All logos are sole properties of respective organizations
  10. 10. Islamic Finance: Innovative Brands Leading ExamplesAl Baraka Banking Group (Bahrain) is a leading Vision: We believe society needs a fair and equitable financialinternational Islamic bank offering retail, corporate / system: one which rewards effort and contributes to theinvestment banking and treasury services in accordance development of the community.with the principles of the Islamic Sharia. Others:Image source: AlBaraka website 10 © DinarStandard 2005-2011*All logos are sole properties of respective organizations
  11. 11. Muslim Lifestyle Market/ Islamic Finance HUGE Opportunity Gap. Only fraction of demand Global Other being met*. Audience Pharma Retail Faith driven Islamic Global Muslim Each sector represents Consumer Base Finance various consumer facing Media Hospitality 1.6 Billion ppn. and B2B subsectors. E.g. **US$1.8 trillion+ Halal Food Sector in Fashion spend infancy across all sub- Education Consumer sectors. Goods Tourism Retail• Islamic Finance: $1 trillion Halal Food Online in total assets, growing at Services © DinarStandard 15-20% annually. Yet--still in its infancy and mostly B2B. * Based on existing Halal services relative to related product category consumption today ** DinarStandard 2008 estimate based on related conventional product category current spend © DinarStandard 2005-2011 11
  12. 12. OIC* Market BrandsHUGE Opportunity Gap.Increased connectivity andgrowth within the 57 OIC(Organization of IslamicConference) membercountries (2009 GDP est. $7.7trillion, 12.8% of the GlobalGDP.)Yet– barely any reputableglobal brands andinnovations. © DinarStandard 2005-2011 12
  13. 13. Innovative Muslim Market Brands & Opportunity GapTwo Objectives today Share Examples of Innovative 1 Muslim Market Brands Strategies for 2 Big Thinking - Global Leadership Global value Global business Muslim Lifestyle solutions with proposition with market optimized developmental Islamic values inherent impact © DinarStandard 2005-2011 13
  14. 14. So, we should learn from the best and investInnovation Strategy Best Practices are well defined "Innovation is capable of being presented as a discipline, capable of being learned, capable of being practiced. Entrepreneurs need to search purposefully for the sources of innovation, the changes and their symptoms that indicate opportunities for successful innovation." Mr. Peter Druckers, Innovation & Entrepreneurship © DinarStandard 2005-2011 14
  15. 15. ...but, hasn’t exactly translated to the OIC environment Industry clusters have been developed and existed for years. Global consulting firms have been advising OIC companies on these strategies. No Silicon Valley as yet, No Google as yet, No Values driven truly global “Islamic Brand” © DinarStandard 2005-2011 15
  16. 16. So what‟s missing? We compared and looked closely and found*: 50 Most Innovative Top 100+ 1. Relative “Chronic” gaps in the OIC Global Companies Companies of the Muslim World markets’ innovation culture VS a) A corporate culture that fosters “Fear of Failure” at all levels a) Small Thinking led by executive leadership b) A corporate culture that discourages “Critical Thinking” at all levels Leading Global Top 100+ 2. Major gaps in branding & marketing Brands Companies of the Muslim World approach VS a) Disingenuous brand soul/ identity b) Relative lack of marketing investment*Based on DinarStandard research/ analysis © DinarStandard 2005-2011 16
  17. 17. Solution: 3 Core Areas to address Critical to realize full potential of Muslim market opportunities 1. Products/Brands with unique soul: (core values/ purpose) Challenges Unique to the Muslim markets 2. „Rehabilitate‟ an Innovation culture 3. Develop competitive, marketing & innovation practices*Based on DinarStandard analysis © DinarStandard 2005-2011 17
  18. 18. Solution: 3 Core Areas to address Critical to realize full potential of Muslim market opportunities 1. Products/Brands with unique soul:Without 1 & 2 - You cannot truly (core values/ purpose)develop sustainable businessicons. 2. „Rehabilitate‟ an Innovation culture Focus on 3 Only - You can create good 3. Develop competitive, marketing follower brands & innovation practices*Based on DinarStandard analysis © DinarStandard 2005-2011 18
  19. 19. Example Values Framework for Islamic Financial Institutions (IFI‟s)Can be applied across all business sectors IFI’s Operational Manifestation Disclosure & Governance as a Means of Accountability Religious Financial Operations (Form & Substance in all mobilization (employees, vendors, etc) operations) Social Responsibilities Mandatory Recommended • Screening of investments • Qard Hasan • Earnings prohibited by Shari‟a • Environmental considerations • Responsible dealings with clients • Screening clients and contractors (add. criteria) • Employees • Industry-wise investment quotas • Zakah • Social impact based investment quotas • Par excellence customer service • Micro/ small sized biz social savings and investments • Employee welfare (extension) • Charitable activities *Based on 2009 Survey by DinarStandard and Dar Al Istithmar, Jan 2010, Supported by Industry standardization body AAOIFI © DinarStandard 2005-2011 19
  20. 20. Islamic finance global leadership Islamic Values driven opportunities Financial Hunger Climate Ignorance Health ManagementCRISIS • Collapse of major Wall • Increased food prices in • Global carbon emissions • One in five children in • 14 million people in • Inaccurate financial Street institutions leading 2007/ 2008 has increased rose 3 percent last year. developing countries does developing countries die reporting; executive pay to a worldwide recession. malnourished people Could result in large-scale not complete five years of from infectious diseases. excesses; bribery; labor/ worldwide by 119 million. melting of glaciers. With a basic education; one Mostly due to expensive employee abuse. Enron, Total to nearly one billion dangerous rise in sea billion illiterate adults. medicines. No Insurance. Tyco, WorldCom, people . – Oxfam level. - NowPublic – PBS, Wide Angle - Oxfam Satyam scandals. Islamic Finance • Sector investment focus • Sector investment focus • Sector investment focus • Sector investment focus • Management practices • Unprecedented Agriculture Sustainable Tech. Education sector Healthcare sector Management OPPORTUNITY Opportunity to take global leadership sector Leadership Leadership Leadership Leadership • A new guide to the Leadership • Renewable energy • World-class education/ • Healthcare management • Lead by example with Global Finance initiatives – solar; wind research institutes development ethically conscious industry • Egypt, Bangladesh, power, other. • Thought leadership • Medical research management practices Pakistan, Sudan, Nigeria leadership • Take ownership of - are some of the most real-economy sectors agriculturally endowed with biggest human in the world however development impact. with dismally low productivity. *Based on DinarStandard analysis © DinarStandard 2005-2011 20
  21. 21. Our Growth Strategy Methodology*How we address the unique Muslim market gaps and opportunities Sectors/ Industries FOOD & ISLAMIC MUSLIM OTHER* Growth (OIC Economies) AGRICULTURE FINANCE LIFESTYLE Solutions (OIC Economies) MARKET MARKET EXPANSION Opportunity Analysis | Feasibility Studies Investment Targeting | Business Planning CUSTOMER GROWTH Marketing 2.0 Strategy | Planning Customer Insights INNOVATION Workshops: Recipe for Innovation Creativity Rehabilitation℠ | Digital Innovation *DinarStandard Consulting Framework © DinarStandard 2005-2011 21
  22. 22. Innovative Muslim Market Brands & Opportunity GapSummary of two Objectives today A rich diversity of exciting brands are emerging from across 1 the Muslim lifestyle, Islamic finance and OIC markets -- yet far from their potential or global impact. To realize full global potential of Muslim brands: 2 1. Develop products with unique soul: (core values/ purpose driven) 2. „Rehabilitate‟ an Innovation culture 3. Develop competitive, marketing & innovation practices © DinarStandard 2005-2011 22
  23. 23. Envisioned Future? “You are the best of peoples ever raised up for mankind...” Salman Amin, Worlds Most Influential (Qur’an: Al-Imran3:110) CEO, Pepsico UK Business Leaders Worlds Most Admired Companies (Fortune 2007)*All logos are sole properties of respective organizations © DinarStandard 2005-2011 23
  24. 24. Growth Strategies for Emerging Muslim Markets Reproduction of this presentation or any part of it should be accompanied with proper credit to DinarStandard and without any manipulation. All third party images and logos are sole properties of respective organizations. CONTACT: Rafi-uddin Shikoh Managing Director DinarStandard 80 Broad Street, 5th Floor, New York City, NY 10004, USA T: 1-347-624-7454 F: 1-201-526-8404 E: rafishikoh@dinarstandard.com W: advisory.dinarstandard.com © DinarStandard 2005-2011 24

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