Innovative Muslim Market Brands & Opportunity Gap

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Innovative Muslim Market Brands & Opportunity Gap

  1. 1. Innovative Muslim Market Brands & Opportunity Gap Rafi-uddin Shikoh E: rafishikoh@dinarstandard.com W: www.dinarstandard.com 1
  2. 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 © DinarStandard 2010 2
  3. 3. Emerging Muslim Market Innovations/ Brands 3 Key Opportunity Areas MUSLIM LIFESTYLE MARKET: US$ 2 trillion+ ‘Halal’ consumer market OIC* Economies: US$ 7.6 trillion, ‘09 GDP Growing segments: • Food, • Fashion, • Recreation • Travel • Education, • Health, • Other Growing sectors: • Transportation • Food & Agriculture • IT Telekom • Healthcare/ Pharma • others 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 2010 3
  4. 4. Innovative Muslim Market Brands & Opportunity Gap Two Objectives today 1 Share Examples of Innovative Muslim Market Brands 2 Strategies for Big Thinking - Global Leadership 4
  5. 5. Muslim Market Innovations/ Brands First: Innovation Defined • Implementing new ideas in a commercially viable way. • Types of Innovation: • • • • • Product: Process: B-Model: Cust.Service: Positioning: Ebay Dell iPhone - iTune Zappos Nike *All logos are sole properties of respective organizations © DinarStandard 2010 5
  6. 6. Muslim Lifestyle Market: Innovative Brands Food Sector Examples Bateel: A Gourmet Date Experience Offers more than 20 varieties of high quality dates and chocolate. Recently launched a series of Café‟s across its main markets. HQ: Riyadh, Saudi Arabia ; Employees: 550+ Locations: 25+ outlets: including Dubai, Riyadh, Amman, Riyadh, Mumbai, Delhi, Kuala Lumpur, London. Others: Image source: Bateel website; *All logos are sole properties of respective organizations © DinarStandard 2010 6
  7. 7. Muslim Lifestyle Market: Innovative Brands Fascinating NY „Halal Cart‟ Phenomenon New York, USA now has hundreds of Halal food carts and known as the best value for taste in NY. An annual Vendy Award – for street vendors is NY is regularly won by these Halal Carts. (Shown here) The one on W 53rd Street and Avenue of the Americas has people waiting for hours regularly. Image Source: Sergio Calleja (Life is a trip) © DinarStandard 2010 7
  8. 8. Muslim Lifestyle Market: Innovative Brands Fashion Sector Examples SHUKR: Putting faith into fashion Launched 2001: “contemporary modest clothing” for a new generation of Muslims living in the West. Prides having non-Muslim loyal customers. “Aspires to be a model Islamic business…fair trade, ethical labor practices, pursue a path of perfection by producing clothing of the highest standards, and avoiding interest-based financing. . Others: Bahrain‟s Al-Gassra Image source: Shukr website *All logos are sole properties of respective organizations © DinarStandard 2010 8
  9. 9. Muslim Lifestyle Market: Innovative Brands Travel & Hospitality Examples Tamani Hotels & Resorts, Dubai “Dedicated Ladies floor, Is alcohol free, serves halal food, patron of Islamic art, and donates a %age of profits to charities.” A hospitality and leisure management division of KM Properties, which is the real estate development division of Dubai based KM Holding. Had announced a US $2.3 billion Islamic-compliant real estate fund. Others: Image source: Tamani website *All logos are sole properties of respective organizations © DinarStandard 2010 9
  10. 10. Muslim Lifestyle Market: Innovative Brands Children Recreation Examples Teshkeel Media Group: The 99 Comic series Cultivate themes intrinsic to Islamic culture and deliver a unique, values based, multi media experience to children in the 9 to 12 age group with a global appeal. HQ: Kuwait, Started 2003, Raised $25 mill in first two rounds; Theme park, merchandise license, animation series Others: Image source: The99.org website *All logos are sole properties of respective organizations © DinarStandard 2010 10
  11. 11. Islamic Finance: Innovative Brands Leading Examples Al Baraka Banking Group (Bahrain) is a leading international Islamic bank offering retail, corporate / investment banking and treasury services in accordance with the principles of the Islamic Shari'a. Vision: We believe society needs a fair and equitable financial system: one which rewards effort and contributes to the development of the community. Others: Image source: AlBaraka website *All logos are sole properties of respective organizations © DinarStandard 2010 11
  12. 12. 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 2010 12
  13. 13. Muslim Lifestyle Market/ Islamic Finance HUGE Opportunity Gap.  Only fraction of demand being met*.  Each sector represents various consumer facing and B2B subsectors. E.g. Halal Food Sector in infancy across all subsectors. • Islamic Finance: $1 trillion in total assets, growing at 15-20% annually. Yet--still in its infancy and mostly B2B. Global Audience Other Pharma Faith driven Global Muslim Consumer Base Retail Islamic Finance Media 1.6 Billion ppn. **US$1.8 trillion+ spend Hospitality Fashion Education Consumer Goods Tourism Retail Halal Food Online Services © DinarStandard * Based on existing Halal services relative to related product category consumption today ** DinarStandard 2008 estimate based on related conventional product category current spend © DinarStandard 2010 13
  14. 14. OIC* Market Brands HUGE Opportunity Gap. Increased connectivity and growth within the 57 OIC (Organization of Islamic Conference) member countries (2009 GDP est. $7.7 trillion, 12.8% of the Global GDP.) Yet– barely any reputable global brands and innovations. © DinarStandard 2010 14
  15. 15. Innovative Muslim Market Brands & Opportunity Gap Two Objectives today 1 Share Examples of Innovative Muslim Market Brands 2 Strategies for Big Thinking - Global Leadership Global value proposition with Islamic values inherent Muslim Lifestyle market optimized © DinarStandard 2010 Global business solutions with developmental impact 15
  16. 16. 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 2010 16
  17. 17. ...but, hasn’t exactly translated to the OIC environment Industry clusters have been developed and existed for years. Global consulting firms have been advising OIC companies on these strategies. No Silicon Valley as yet, No Google as yet, No Values driven truly global “Islamic Brand” © DinarStandard 2010 17
  18. 18. So what‟s missing? We compared and looked closely and found*: Top 100+ Companies of the Muslim World 50 Most Innovative Global Companies VS 1. Relative “Chronic” gaps in the OIC markets’ innovation culture 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 Top 100+ Companies of the Muslim World Leading Global Brands 2. Major gaps in branding & marketing approach VS a) Disingenuous brand soul/ identity b) Relative lack of marketing investment *Based on DinarStandard research/ analysis © DinarStandard 2010 18
  19. 19. Solution: 3 Core Areas to address Critical to realize full potential of Muslim market opportunities 1. Products/Brands with unique soul: Challenges Unique to the Muslim markets (Islamic brands – must have Islam driven core values/ purpose) 2. „Rehabilitate‟ an Innovation culture 3. Develop competitive, marketing & innovation practices *Based on DinarStandard analysis © DinarStandard 2010 19
  20. 20. Islamic Brands soul: Islam defined values as the driving force Shari‘* divine rules Tabi‘* aspect of 'dunia‘ (world) • Iman – faith in Allah • Taqwa – Fear of Allah • Ihsan – Love of Allah • Itqan – Excellence • Mujahedah – Self Improvement • Amanah - Trust • 'Ahd – Keep promises • Adl – Justice • Birr – righteousness • Innovation • Corporate governance • Interactive Marketing • Quality control • Product development • R&D • Global integration • Information Tech. • Competitive strategy Source: Leadership: An Islamic Perspective, by Dr. Rafik Beekun, Dr. Jamal Badawi Profit Not Usury Zakat – Charity * Source: Inseparable Shari' and Tabi' Principles in Business Strategy: Prof. Dr. Saiful Azhar Rosly © DinarStandard 2010 20
  21. 21. Example Values Framework for Islamic Financial Institutions (IFI‟s) Can be applied across all business sectors Religious (Form & Substance in all operations) Financial mobilization Operations (employees, vendors, etc) 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) • Disclosure & Governance as a Means of Accountability IFI’s Operational Manifestation Charitable activities *Based on 2009 Survey by DinarStandard and Dar Al Istithmar, Jan 2010, Supported by Industry standardization body AAOIFI © DinarStandard 2010 21
  22. 22. Islamic finance global leadership Islamic Values driven opportunities CRISIS Financial Hunger Climate Ignorance Health Management • Collapse of major Wall Street institutions leading to a worldwide recession. • Increased food prices in 2007/ 2008 has increased malnourished people worldwide by 119 million. Total to nearly one billion people . – Oxfam • Global carbon emissions rose 3 percent last year. Could result in large-scale melting of glaciers. With a dangerous rise in sea level. - NowPublic • One in five children in developing countries does not complete five years of basic education; one billion illiterate adults. – PBS, Wide Angle • 14 million people in developing countries die from infectious diseases. Mostly due to expensive medicines. No Insurance. - Oxfam • Inaccurate financial reporting; executive pay excesses; bribery; labor/ employee abuse. Enron, Tyco, WorldCom, Satyam scandals. • Sector investment focus • Sector investment focus • Sector investment focus • Sector investment focus • Management practices Agriculture sector Leadership Sustainable Tech. Leadership Education sector Leadership Healthcare sector Leadership Management Leadership • Renewable energy initiatives – solar; wind power, other. • World-class education/ research institutes • Thought leadership • Healthcare management development • Medical research leadership • Lead by example with ethically conscious management practices OPPORTUNITY Islamic Finance • Unprecedented Opportunity to take global leadership • A new guide to the Global Finance industry • Take ownership of real-economy sectors with biggest human development impact. • Egypt, Bangladesh, Pakistan, Sudan, Nigeria - are some of the most agriculturally endowed in the world however with dismally low productivity. *Based on DinarStandard analysis © DinarStandard 2010 22
  23. 23. Our Growth Strategy Methodology* How we address the unique Muslim market gaps and opportunities How we help? How you GROW? Islamic Finance Muslim Lifestyle Market℠ CUSTOMERS MARKETS INNOVATION Acquire, Retain, Grow New regions, Segments OIC – Sectors Healthcare/ Pharma, Food, IT, Others RESPONSIBILITY Product, Model, Process Optimize (Profitability) • Customer Insights research/ analysis • Marketing Strategy/ Campaigns • New market Feasibility • Market opportunity • Business Planning • Big-Thinking Innovation Framework • Social responsibility framework • Innovation culture at work • Audit & Recommendations • Investment analysis *DinarStandard Consulting Framework © DinarStandard 2010 23
  24. 24. Innovative Muslim Market Brands & Opportunity Gap Summary of two Objectives today 1 2 A rich diversity of exciting brands are emerging from across the Muslim lifestyle, Islamic finance and OIC markets -- yet far from their potential or global impact. To realize full global potential of Muslim brands: 1. Develop products with unique soul: (Islamic brands – must have Islam driven core values/ purpose) 2. „Rehabilitate‟ an Innovation culture 3. Develop competitive, marketing & innovation practices © DinarStandard 2010 24
  25. 25. Envisioned Future? “You are the best of peoples ever raised up for mankind...” (Qur’an: Al-Imran3:110) Salman Amin, CEO, Pepsico UK World's Most Influential Business Leaders World's Most Admired Companies (Fortune 2007) *All logos are sole properties of respective organizations © DinarStandard 2010 25
  26. 26. Growth Strategies for 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 31 Kinglet Avenue, Marlboro, NJ, USA T: 1-347-624-7454 F: 1-201-526-8404 E: rafishikoh@dinarstandard.com W: www.DinarStandard.com © DinarStandard 2010 26

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