What are Halal Products?

Someone recently asked me what 'Halal Products' actually means.

I feel that I am quite qualified to answer this question even though I am not an Islamic scholar. 

The term 'halal' means acceptable, based on Islamic values. Halal principles emphasise following Islamic guidelines in hygiene, purity, safety, production, manufacturing, processing, and the serving of food and other products (Ghazali et al., 2022; Mutum and Ghazali, 2014).

Halal products are a form of religion-compliant products. In other words, they are Sharia or Islamic law compliant (Al-hajla et al., 2019). 

Products which are not Halal are Haram, and include food items that are prohibited by religious dietary laws (e.g., alcohol and pork) (Ghazali et al., 2022). However, halal products are not restricted to food, and they now cover banking and finance, fashion, travel, media, pharmaceuticals, cosmetics and even technology. 

There are various organisations in different countries which are responsible for the official certification of a product as halal. This includes the Department of Islamic Development Malaysia (Jabatan Kemajuan Islam Malaysia or JAKIM). Halal Certification Organisation (HCO) and Halal Food Authority (HFA) are independent halal certification bodies in the UK. 

In the past, I have expressed my concerns with the marketing practices of numerous Islamic and halal labelled products and companies which have entered the market. Consumers have begun to realise that Islamic-branded products and companies do not necessarily translate into good quality products or business success. The negative stories and other fraud cases related to Islamic and halal labelled products can eventually be detrimental to general trust in these labels (Ghazali & Mutum, 2016). 

REFERENCES:

Ghazali, E., Mutum, D., Waqas, M., Taha, A.Z. and Mohtar, M. (2022). Factors influencing the potential adoption of portable pork DNA detection device, Journal of Islamic Marketing, https://doi.org/10.1108/JIMA-05-2022-0129 [ABDC B/ SCOPUS].

Ghazali, E.M. Mutum, D.S., Waqas, M., Nguyen, B. and Ahmad-Tarmizi, N.A. (2022). Restaurant choice and religious obligation in the absence of halal logo: A serial mediation model, International Journal of Hospitality Management, 101, 103109 https://doi.org/10.1016/j.ijhm.2021.103109 [ABDC A*/ SCOPUS/ WOS/ AJG 3].

Al-hajla, A.H., Nguyen, B., Melewar, T.C., Jayawardhena, C., Mutum, D.  and Ghazali, E. (2019). Understanding the adoption of new religion-compliant products (NRCP) in Islamic markets. Journal of Global Marketing, 32(4), 288-302. [CABS 1/ ABDC B/ SCOPUS]

Butt, M., de-Run, E., U-Din, A. and Mutum, D., (2018). Religious symbolism in Islamic financial service advertisements, Journal of Islamic Marketing, 9(2), 384-401. [ABDC B/ SCOPUS] Selected by the editorial team as Highly Commended in the 2019 Emerald Literati Awards. 

Ghazali, E. & Mutum, D.S. (2016). Islamic Marketing: Compatibility with Contemporary Themes in Marketing, In: Mutum, D.S., Butt, M.M. and Rashid, M., eds., Advances in Islamic Finance, Marketing, and Management: An Asian Perspective, 217-226, Emerald Group Publishing Limited.

Mutum, D. S. & Ghazali, E. (2014). Case Study 4: Ikea Malaysia and the Halal Food Crisis, In Mutum, D. S. et al. (Eds), Marketing Cases from Emerging Markets, 31-33, Springer.

First publication of 2019: Understanding New Religion-Compliant Product Adoption (NRCPA) in Islamic Markets

Just found out that one of my papers, titled "Understanding New Religion-Compliant Product Adoption (NRCPA) in Islamic Markets"  has been published online by the Journal of Global Marketing.

The authors of the paper were: Ali Homaid Al-hajla, Bang Nguyen, T C Melewar, Chanaka Jayawardhena, Ezlika Ghazali & Dilip S. Mutum .

Abstract:

This study examines the relationships between religious beliefs, brand personality, and new religion-compliant product adoption (NRCPA) in Islamic markets. Findings confirm that religious consumers tend to behave in accordance with a society or group that follows the same beliefs, and that these consumers’ behavior and lifestyle are influenced by similar religious groups and social relationships. In addition, the more religious the consumer, the more likely they will adopt or favour/disfavour a new product in accordance with his/her religious beliefs. Finally, the three constructs–relative advantages, compatibility and complexity–are found to partially mediate the influential relationship between religious beliefs and new religion-compliant product adoption. International firms that target Muslim markets, with an aim to profit and fit in these markets, must take into account the Islamic values, standards and guidelines.

Keywords: Religious beliefs, brand personality, new religion-compliant product adoption, Islamic branding, Muslim market

There are 50 free online copies of their article. Use the link below to view and download the paper:

https://www.tandfonline.com/eprint/MtzrN5BEhsXWuD9kh3fF/full?target=10.1080/08911762.2018.1559907

Book on Islamic Finance, Marketing, and Management is now out

I am delighted to announce that our latest edited book is finally out. The book 'Advances in Islamic Finance, Marketing, and Management: An Asian Perspective' is co-edited with Dr. Mohammad Mohsin Butt, Associate Professor of Marketing at Curtin University Malaysia and Dr. Mamunur Rashid Assistant, Professor of Finance at Nottingham University Business School.

With contributions from 35 experts, this book is targeted at both academics and practitioners who are interested and assist in making Shariah-centric strategies.

Here is the preface from the book:

The Islamic financial industries have been growing at a double-digit rate for over a decade now. Referring particularly to the post-financial crisis era, challenges of the management of Islamic financial, management and marketing have reached new heights. Islamic financial institutions (IFIs) from the South Asia, Southeast Asia, and the Middle Eastern countries hold a major percentage of Islamic assets. New opportunities are opening up in the Central Asian countries as well. Currently, the knowledge base on Shari’ah-compliant business and finance is particularly limited, and largely written on the development of finance and allied industries. Experts foresee the need for a useful integration of Islamic finance, halal marketing, and management of Islamic businesses.
This book “Advances in Islamic Finance, Marketing, and Management: An Asian Perspective” aims to balance these gaps by focusing on the Asian perspective of Islamic businesses and by incorporating, alongside finance, the development in Islamic marketing and management of Islamic business. The book is divided into three sections, considering:
Islamic finance that includes topics on Islamic equity and mutual funds, risk and performance of Islamic banks, long-term investment and Sukuk, dynamics of credit portfolios, and financial crimes in Islamic perspective.
Islamic marketing that includes topics on Islamic marketing theory, halal marketing in several Asian markets, and halal logistics.
Islamic business management that includes topics on management of Zakat institutions, and the corporate social responsibility in Islamic organizations.
A group of international experts offer original conceptual articles, empirical research findings, case studies, and critical reviews in the areas of Islamic finance, banking, capital market, halal marketing, consumer perception, services orientation, risk management, industry readiness for better customer satisfaction, as well as policy issues coupling strategy and best practices. As expected, major portion of the discussion surrounds already established Islamic finance industry and a preliminary discussion on the management of businesses. The book can be considered as a guidebook for the academicians as well as the practitioners in the areas of Islamic finance, marketing, and management.

Workshop on Islamic Financial Management and Marketing Principles for SMEs

Helping create some buzz about a workshop:

Application of Islamic Financial Management and Marketing Principles: Preparing SMEs for International Business  Two-day programme for start-up owners, venture capitalists, prospective entrepreneurs from both services and manufacturing sectors. The primary focus of this training is to provide you with a comprehensive synopsis of the tools needed to manage financial functions efficiently, and to develop halal marketing strategies that are necessary for an internationally diversified small and medium enterprise (SME). The course will be delivered using presentations, discussions, case studies and role plays that will help the participants in fulfilling the financial and marketing objectives of their SMEs in a shari’ah compliant way.  Financial management and marketing strategy to prepare SMEs for International Business  Small businesses are essential ingredients of the high-growth Asian markets. Growth of SMEs, particularly that operate based on shari’ah, in Southeast Asia, the Middle East, and in South Asia has been astonishing. As the local market is becoming too competitive, local SMEs are in need to expand their operation across border. Financial management deals with two major aspects: collecting funds and investing funds. A good financial manager should know the alternative methods of low cost shari’ah compliant fund collection in foreign lands. Similarly, one must know the criteria that make their investment shari’ah compliant. A good Islamic market strategy will help local SMEs in targeting their foreign customers and marketing their products in foreign lands in a halal way.  Key financial and marketing management questions from an Islamic perspective:   How to collect money for SMEs?  Where to invest money?  How to write a financial plan for loan application?  How to do halal marketing? How it is different from conventional marketing?  How to manage marketing challenge in foreign land?  How to manage typical Islamic marketing challenge for SMEs?  Learning outcomes After completing the training, you will be able: To develop an understanding of Islamic financial management for SMEs that includes an overview of the industy, opportunities and challenges. To learn how to prepare a financial plan to apply for bank/venture capital loans.  To learn how to prepare a halal branding strategy for your company/product.  To analyse the opportunities and challenges for Islamic SMEs in other countries.  Methods of training and assessment Powerpoint presentations  Case exercises  Flipchart presentations for brainstorming Presentation from participants  Programme outline Day One Module one – Financial management of Islamic business  Element of a financial plan Forecasting financial variables Applying for Islamic bank loans Understanding shari'ah compliant investments Module two – Alternative financing, operational management, and sustainability  Understanding alternative financing available Preparing cash budget and determining funds needs  Influence of taxation (GST) and the way forward Micro-equity funds and Micro-takaful insurance   Day Two Module three – Essentials of halal marketing     Elements of a halal branding strategy Target markets and customer satisfaction in Islamic business  Module four – Advertisement, branding and distribution of halal products   Social image of shari'ah compliant advertising Branding of Islamic business Creating a sustainable brand value Supply chain management of halal products  Costing and profitability of the halal product    Programme fee Early bird price: RM2,500/person + GST of 6% Normal price: RM2,600/person + GST of 6% Group of three and above: RM2,200/person + GST of 6% (for more than three delegates attending from the same company/institution) The programme fee covers tuition, case materials and tea breaks.  About the programme leaders Dr Mamunur Rashid is an Assistant Professor of Finance at Nottingham University Business School Malaysia. He has been teaching and conducting training on financial management and Islamic entrepreneurship for the last ten years. His area of expertise includes financial management, financing of small firms, Islamic business, and Islamic ethics. He worked on the “Malaysian Workforce Quality” (a Malaysian Human Resource Development Ministry project) and he trained senior officials of PVH Corp., on advance computer application in business in Bangladesh. Dr Mamunur is also the Deputy Director of the Centre for Islamic Business and Finance Research (CIBFR) at the University of Nottingham Malaysia Campus. He has published on Islamic finance and business, business ethics and Islamic services marketing. Dr Mamunur is a Malaysian Human Resources Development Fund (HRDF) certified trainer. Dr Dilip Mutum is an Associate Professor of Marketing at Nottingham University Business School Malaysia. Prior to this, he was attached with the Coventry Business School, Coventry University, as a Lecturer in Marketing and Advertising. He has also taught at the Warwick Business School, University of Warwick and Universiti Utara Malaysia. Before joining academia, Dilip has worked with various organisations in different capacities. This includes a short stint as a sub-editor of a magazine and as the Communications Officer for Consumers International - Asia Pacific office. Dilip has published widely in journals and books, as well as presented at national and international conferences. His research interests include digital consumption, social networking, customer relationship management, and social marketing. His Twitter profile (@admutum) has over 8000 followers.    To register, download the registration form.  For more information, contact Nottingham University Business School Malaysia Executive Education at +6(03) 8924 8303 (Ms Judy Wong; email: Judy.Wong@nottingham.edu.my) or by email NUBS.EDP@nottingham.edu.my  or visit our website at Executive Education.