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