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The Halal tipping point
     and beyond
  Examining emerging market
    and social opportunities



Shahed Amanullah, creator of zabihah.com
   and founder of Halalfire Media LLC
About zabihah.com
Founded in 1999 in
Silicon Valley,
zabihah.com helps
over five million
people a year search
from over 10,000
restaurants and
markets and read
from over 35,000               WINNER

user reviews                2008 Travel &
                           Hospitality Award
                           World Halal Forum,
                            Kuala Lumpur,
                               Malaysia
PART 1:
The current state of the
  Halal marketplace
Which Halal economy?
• There aremarkets in the Muslim and non-
  the Halal
            qualitative differences between
  Muslim worlds
• Each market has its own opportunities
• Both are reaching their own tipping points
• The the greatest prospectsWest, however,
  has
      Halal economy in the
                             for economic
  and social benefit
PART 2:
State of the Halal
market in the West
Get ready for a wild ride
Growth of Muslim-run
        establishments is strong
9,000
        Number of outlets in US/CA/UK
        offering halal food or products
6,750




4,500




2,250




   0
        1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009


                                                                 Source: zabihah.com
Driving the Halal market

                                            Halal
  Halal       Halal          Halal        Markets &      Halal
Producers   Authorities   Distributors   Restaurants   Consumers




         With over 5 million queries a year,
         zabihah.com is the only significant
       connection that the Halal industry has
        with consumers seeking Halal food
Ease of use drives demand




Location of searches for Halal services from the iPhone
  (15% of all zabihah.com traffic) in an average day
Mainstream businesses
   are seeing the opportunity
1,500
        Number of mainstream outlets in
        US/CA/UK offering halal SKUs
1,125




 750




 375




   0
         1998   1999   2000   2001   2002   2003   2004   2005   2006   2007   2008   2009


                                                                  Source: zabihah.com
Why is this happening?
Revenue tipping point

New business from
Muslim customers seeking
Halal goods & services


Lost business from
customers turned off from
serving Muslim customers
The good news:            The bad news:
•   Mainstream entrants
    buy into the market
                          •   Mainstream entry
                              into the Halal market
    opportunity               is still very tentative
•   Halal suppliers are
    meeting mainstream
                          •   Still spooked by
                              resistance from
    specs & quantity          hostile customers
•   Most non-Muslim
    customers are
                          •   The Halal “brand” can
                              still be tainted by
    indifferent               geopolitics
Why is this important?
The market opportunity



        Up to 6 million
      Muslim consumers
      in North America
The market opportunity



  Up to 6 million      Up to 350 million
Muslim consumers       overall consumers
in North America       in North America
PART 3:
Beyond the tipping point
We are halfway there

Modernization   Modernization of
                production & supply
                chains has helped to
                increase the supply of
                quality Halal goods and
                services

   Marketing    Marketing will help to
                increase the demand for
                quality Halal goods and
                services among Muslims
                and non-Muslims alike
Marketing Halal:
     A fork in the road

 Do we continue     Or should we
 to market Halal     incorporate
  solely through   universal values
values embraced    that others can
only by Muslims?     appreciate?
PART 4:
Bringing the benefits of
 Halal principles to all
Incorporate universal values

Organic     One of the best ways to ensure a halal
            production chain (for meat in
            particular) is to go organic

Humane      Halal requires humane treatment of
            animals (i.e. comforting before
            slaughter)

Financial   Islamic economic principles stress
            social justice and absence of harm to
            the less fortunate
Reinforce the Halal brand
• Incorporate universal themes in your Halal
  marketing materials
• Support mainstream companies when they
  take a risk on the Halal market
• Halal certifiersto non-Muslims,case certify
  Halal matters
                   must make the
                                  and
                                      that
  for universal Islamic principles
• Move towards standardizationcertifications
  and socially responsible Halal
                                 of organic
We are doing our part
More than just money
• If we market itas a significant contributor to
  non-Muslims
                  right, Halal can be seen by
  global society
• Non-Muslims can see Muslims promoting
  Halal values (social responsibility,
  stewardship of the earth, economic justice)
• This will counter the prevailing media
  narrative of Muslims only contributing
  violence and hatred to the world
Thank you

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Shahed amanullah, tipping point for halal ihmc 2010, day 1 session 2

  • 1. The Halal tipping point and beyond Examining emerging market and social opportunities Shahed Amanullah, creator of zabihah.com and founder of Halalfire Media LLC
  • 2. About zabihah.com Founded in 1999 in Silicon Valley, zabihah.com helps over five million people a year search from over 10,000 restaurants and markets and read from over 35,000 WINNER user reviews 2008 Travel & Hospitality Award World Halal Forum, Kuala Lumpur, Malaysia
  • 3. PART 1: The current state of the Halal marketplace
  • 4. Which Halal economy? • There aremarkets in the Muslim and non- the Halal qualitative differences between Muslim worlds • Each market has its own opportunities • Both are reaching their own tipping points • The the greatest prospectsWest, however, has Halal economy in the for economic and social benefit
  • 5. PART 2: State of the Halal market in the West
  • 6. Get ready for a wild ride
  • 7. Growth of Muslim-run establishments is strong 9,000 Number of outlets in US/CA/UK offering halal food or products 6,750 4,500 2,250 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: zabihah.com
  • 8. Driving the Halal market Halal Halal Halal Halal Markets & Halal Producers Authorities Distributors Restaurants Consumers With over 5 million queries a year, zabihah.com is the only significant connection that the Halal industry has with consumers seeking Halal food
  • 9. Ease of use drives demand Location of searches for Halal services from the iPhone (15% of all zabihah.com traffic) in an average day
  • 10. Mainstream businesses are seeing the opportunity 1,500 Number of mainstream outlets in US/CA/UK offering halal SKUs 1,125 750 375 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: zabihah.com
  • 11. Why is this happening?
  • 12. Revenue tipping point New business from Muslim customers seeking Halal goods & services Lost business from customers turned off from serving Muslim customers
  • 13. The good news: The bad news: • Mainstream entrants buy into the market • Mainstream entry into the Halal market opportunity is still very tentative • Halal suppliers are meeting mainstream • Still spooked by resistance from specs & quantity hostile customers • Most non-Muslim customers are • The Halal “brand” can still be tainted by indifferent geopolitics
  • 14. Why is this important?
  • 15. The market opportunity Up to 6 million Muslim consumers in North America
  • 16. The market opportunity Up to 6 million Up to 350 million Muslim consumers overall consumers in North America in North America
  • 17. PART 3: Beyond the tipping point
  • 18. We are halfway there Modernization Modernization of production & supply chains has helped to increase the supply of quality Halal goods and services Marketing Marketing will help to increase the demand for quality Halal goods and services among Muslims and non-Muslims alike
  • 19. Marketing Halal: A fork in the road Do we continue Or should we to market Halal incorporate solely through universal values values embraced that others can only by Muslims? appreciate?
  • 20. PART 4: Bringing the benefits of Halal principles to all
  • 21. Incorporate universal values Organic One of the best ways to ensure a halal production chain (for meat in particular) is to go organic Humane Halal requires humane treatment of animals (i.e. comforting before slaughter) Financial Islamic economic principles stress social justice and absence of harm to the less fortunate
  • 22. Reinforce the Halal brand • Incorporate universal themes in your Halal marketing materials • Support mainstream companies when they take a risk on the Halal market • Halal certifiersto non-Muslims,case certify Halal matters must make the and that for universal Islamic principles • Move towards standardizationcertifications and socially responsible Halal of organic
  • 23. We are doing our part
  • 24. More than just money • If we market itas a significant contributor to non-Muslims right, Halal can be seen by global society • Non-Muslims can see Muslims promoting Halal values (social responsibility, stewardship of the earth, economic justice) • This will counter the prevailing media narrative of Muslims only contributing violence and hatred to the world