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

1. Innovative Muslim Market
Brands & Opportunity Gap
Presented at:
By:
Rafi-uddin Shikoh
E: rafishikoh@dinarstandard.com
W: advisory.dinarstandard.com
1

2. Most Innovative Companies & Respected Global Brands
Muslim 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. 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/year
Growing 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. Innovative Muslim Market Brands & Opportunity Gap
Two Objectives today
Share Examples of Innovative
1 Muslim Market Brands
Strategies for
2 Big Thinking - Global Leadership
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5. Muslim Market Innovations/ Brands
First: Innovation Defined
• Implementing new ideas in a
commercially viable way.
• Types of Innovation:
• Product: Ebay
• Process: Dell
• B-Model: iPhone - iTune
• Cust.Service: Zappos
• Positioning: Nike
*All logos are sole properties of respective organizations 5
© DinarStandard 2005-2011

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. 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. Muslim Lifestyle Market: Innovative Brands
Fashion Sector Examples
SHUKR: Putting faith into fashion “Aspires to be a model Islamic business…fair
Launched 2001: “contemporary modest clothing” trade, ethical labor practices, pursue a path of
for a new generation of Muslims living in the perfection by producing clothing of the highest
West. Prides having non-Muslim loyal customers. standards, and avoiding interest-based financing.
.
Others:
Bahrain‟s Al-Gassra
Image source: Shukr website 8
© DinarStandard 2005-2011
*All logos are sole properties of respective organizations

9. Muslim Lifestyle Market: Innovative Brands
Travel & Hospitality Examples
Tamani Hotels & Resorts, Dubai A hospitality and leisure management division of KM
“Dedicated Ladies floor, Is alcohol free, Properties, which is the real estate development
serves halal food, patron of Islamic art, and division of Dubai based KM Holding. Had announced a
donates 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. Islamic Finance: Innovative Brands
Leading Examples
Al Baraka Banking Group (Bahrain) is a leading Vision: We believe society needs a fair and equitable financial
international Islamic bank offering retail, corporate / system: one which rewards effort and contributes to the
investment banking and treasury services in accordance development of the community.
with the principles of the Islamic Shari'a.
Others:
Image source: AlBaraka website 10
© DinarStandard 2005-2011
*All logos are sole properties of respective organizations

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. OIC* Market Brands
HUGE Opportunity Gap.
Increased connectivity and
growth within the 57 OIC
(Organization of Islamic
Conference) member
countries (2009 GDP est. $7.7
trillion, 12.8% of the Global
GDP.)
Yet– barely any reputable
global brands and
innovations.
© DinarStandard 2005-2011 12

13. Innovative Muslim Market Brands & Opportunity Gap
Two 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. So, we should learn from the best and invest
Innovation 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. ...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. 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. 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. 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 business
icons.
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. 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. Islamic finance global leadership
Islamic Values driven opportunities
Financial Hunger Climate Ignorance Health Management
CRISIS
• 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. 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. Innovative Muslim Market Brands & Opportunity Gap
Summary 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. Envisioned Future?
“You are the best of peoples ever raised up for mankind...”
Salman Amin, World's Most Influential
(Qur’an: Al-Imran3:110) CEO, Pepsico UK Business Leaders
World's Most Admired Companies (Fortune 2007)
*All logos are sole properties of respective organizations © DinarStandard 2005-2011 23

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