Companies must look to Islamic markets for growth
Companies looking for growth must tap into the Muslim market, whose annual Shariah-compliant products and services are worth Dh7.3 trillion ($2 trillion), according to A T Kearney, a global strategic-management consulting firm.
“While businesses have targeted ethnic groups for years, there are relatively few cases of global target segmentation based on religion,” said Maktoum Al Maktoum, director of A T Kearney Middle East.
In a statement, the company yesterday noted that only a few global companies have aligned their supply chain to be compliant with Islamic rules, despite the fact that Muslims form 20 per cent of the world’s population.
It cited fashion and cosmetics as examples of an untapped Muslim industry that is an excellent opportunity for brand houses to incorporate Islamic values.
It said that the global market for fashion apparel is Dh3 trillion ($800 billion), with the Middle East and Malaysia having the highest per-capita spending. Food and beverage firms must also make their supply chain compliant to Islamic rules.
The halal market for cosmetics is also growing at an annual average of 12 per cent, with sales in the Middle East region amounting to Dh29.4 billion ($8 billion), Dh1.8 billion ($500 million) of which is recorded in Dubai.
“Growth strategies for the Middle East demand thinking out of the box,” said Dirk Buchta, vice-president and managing director at A T Kearney Middle East. “Extra care in aligning strategies of global fashion apparel and cosmetic companies present enormous opportunities as the market is sizeable.” Source
“While businesses have targeted ethnic groups for years, there are relatively few cases of global target segmentation based on religion,” said Maktoum Al Maktoum, director of A T Kearney Middle East.
In a statement, the company yesterday noted that only a few global companies have aligned their supply chain to be compliant with Islamic rules, despite the fact that Muslims form 20 per cent of the world’s population.
It cited fashion and cosmetics as examples of an untapped Muslim industry that is an excellent opportunity for brand houses to incorporate Islamic values.
It said that the global market for fashion apparel is Dh3 trillion ($800 billion), with the Middle East and Malaysia having the highest per-capita spending. Food and beverage firms must also make their supply chain compliant to Islamic rules.
The halal market for cosmetics is also growing at an annual average of 12 per cent, with sales in the Middle East region amounting to Dh29.4 billion ($8 billion), Dh1.8 billion ($500 million) of which is recorded in Dubai.
“Growth strategies for the Middle East demand thinking out of the box,” said Dirk Buchta, vice-president and managing director at A T Kearney Middle East. “Extra care in aligning strategies of global fashion apparel and cosmetic companies present enormous opportunities as the market is sizeable.” Source
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