the emerging halal cosmetic and personal care market: integrating towards the tawhid
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The emerging Halal cosmetic and personal care market: Integrating the organization towards the philosophy of the Tawhid Presentated to HAPEX 2012, 11th July 2012 International Convention Centre Prince of Songkla University, Hat Yai, ThailandTRANSCRIPT
The emerging Halal cosmetic and personal care market: Integrating the organization towards
the philosophy of the Tawhid
Mohd. Murray Hunter University Malaysia Perlis
Presented to IMT-GT HAPEX 2012 11th July 2012 International Convention Centre Prince of Songkla University, Hat Yai, Thailand
Global Cosmetic and personal care market Estimate (2012)
> USD35 Trillion
Current global size of Halal cosmetic & personal care market
USD 5-14 Billion
What should it be?
USD 7 Trillion
Current market growth is > 35% per
annum
That Means if 2012 is USD 14 Billion:
2013 = 53 billion2014 = 81 billion
2015 = 124 billion2016 = 190 billion2017 = 292 billion2018 = 449 billion2019 = 690 billion
2020 = 1.06 Trillion
Hunter (2012) Personal Care
Almost 20% of today’s
market comes from this
country alone
Hunter (2012) Personal Care
Reports of Halal sales increasing
at the rate of 80% per annum
in US
Current Global Halal awareness is estimated to be
20% among the global Ummah.
This is going rapidly
However awareness about halal Cosmetics and personal care is even less but growing
rapidly Matrade 2010
Although Muslims make up 20% of the World’s population many are in poverty
Most countries are at different stages of development
Consumer tastes and preferences actually differ widely
Supply chains are typically “third world” in most countries
Although ONE Ummah, different aspiration, desires, customs, incomes
This is a niche market in many countries
20% of the World’s Muslims are NOT concerned about Halal certification on packaging
Islamic Products have two basic concerns
The first is…….. Authenticity & Compliance
Cont….
Forensic Screening
….and the ability to ‘fingerprint’ DNA has
improved our ability to screen products
greatly.
Compliance
However authenticity & compliance in the material, process, product & supply chain doesn’t absolve our need to adhere to the Tawhid, as an individual and
organization.
Tawhid means "declaring one God” . It carries the senses of
creating, sustaining, cultivating, and cherishing. A word from the
same root is tarbiya, which describes how parents bring up their children, succoring them
and drawing out their full nature. There are three types of tawhid, we can see that the outward tawhid al-ibada refers to our actions, while tawhid ar-rububiyya and tawhid al-asma wa as-sifat refer to our knowledge and understanding, and the inner tawhid al-ibada refers to our motivations.
Towards a Tawhid Business Model
Need for an Islamic Model
The nature of man
The amoral society
The underdevelopment of Islamic societies
Al ‘Qu’ran is presented in a business paradigm and all of Islam’s prophets
were entrepreneurs in their own right.
Islam Espouses a Market Economy
“He who brings goods to the market is blessed with bounty,
he who withholds them is cursed.”
(Ibn Majah & Al Hakim)
A Market Mechanism Is Espoused
“Do not chase after those who are going to the market before
they reach the place.”
(Al-Bukhari & Muslim)
Islam also prohibits price manipulation
“Anyone who withholds goods until the price rises is a sinner.”
(Muslim).
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Faith in one God and a commitment in the teachings revealed by God and His Messengers. Iman affects our
world view and daily practices.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Knowledge. Three sources based on Iman, a) intellect (‘aql), experiences and revelations (wahy). Guided by
Iman.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Work and deeds, pious practice, orientated to Allah, turning away from all weakness and evil. Amal is based and guided by
Iman and Ilmu.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
The path shown by Allah (SWT). The divine law.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A holistic life where one looks after worldly comforts and also prepare for the hereafter.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
An individual’s obligation to perform one’s religious duties.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A collective responsibility for both social and spiritual development
Toyyibaan & Halal
• This day are (all) things good and pure made lawful unto you. The food of the people of the Book is lawful unto you and yours is lawful unto them. … If anyone rejects Faith, fruitless is his work, and in the Hereafter he will be in the ranks of those who have lost (all spiritual good).
Al-Ma’idah 5:5
• O you people! Eat of what is on earth, lawful and good; and do not follow the footsteps of the evil one, for he is to you an avowed enemy.
Al-Baqarah 2:168
• From the land that is clean and good, by the Will of its Cherisher, springs up produce, (rich) after its kind; but from the land that is bad, springs up nothing but that which is niggardly: thus do we explain the Signs by various (symbols) to those who are grateful.
Al-A’raf 7:58
• O ye who believe! Eat of the good things that We have provided for you, and be grateful to God, if it is Him ye worship.
Al-Baqarah 2:172
Haram (Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable environment, community
& business
Community Benefit
Toyyibaan
Clean Healthy
Non-exploitive
Traceable
Supply Chain
Ethical
Substances and deeds that are good, healthy, pure, clean and lawful.
Haram (Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable environment, community
& business
Community Benefit
Toyyibaan
Clean Healthy
Non-exploitive
Traceable
Supply Chain
Ethical
Prohibited by Allah in the Al-Qur’an
Haram (Those things prohibited by
Allah in the Al Qu’ran)
HACCP
GMP
Sustainable environment, community
& business
Community Benefit
Toyyibaan
Clean Healthy
Non-exploitive
Traceable
Supply Chain
Ethical
Permitted by Allah in the Al-Qur’an
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Mutual consent
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A business partnership;a) Shirkah: where two or more individuals pool financial resources and share profit and loss on an agreed ratio
and held liable to the extent of their capital,b) Syari’ah: each partner is able to operate other businesses, independent of
the principal businessc) Mudarabah:Partnership where one manages
the partnership and another supplies the financial resources.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Worship. Relates man to Allah through spiritual acts. The
manifestation of Amal salih (pious actions).
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Piety
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Recognition of the right and proper place and station, condition in life and to self discipline in
positive and willing participation in enacting one’s role in accordance with that recognition
and acknowledgement. Its occurrence in one and society as a whole reflects the condition of
justice.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Trust by God in man in the all encompassing concept of nature
(tabi’ah)
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Inclination towards destruction
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
The concept of Al-Falah requires Muslims to win and be successful in both this world
and the hereafter.
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
Islamic community
Tawhid
Al-Iman Syar’iah Ad-Din
Fard’ain
Fard’ Kifayah
Al-Ilm
Al-Amal
Shu’ra
Adab
Halal Toyyibaan
Musharakah Ibadah Al-Ta’awun
Al-Fasad Amanah Al-Fatah Ummah
A relationship with Allah which excludes a relationship with anyone else.
The focus of all man’s reverence and gratitude, the only source of value, where what
Allah desires for man becomes value to him. Man who commits his will to Allah,
recognises no other authority other than His. Comprises Iman, Ilmu and Amal.
Ethical Products
Non-Muslim ethical issues are merging with Islamic values
Extended Halal Concept
Non-Muslim ideas of health and goodness are merging with Islamic values
Organic Farming Concept
From the soil to market
Food Miles – Local Community
Organic cosmetics a market worth more than USD 40 billion per
annum and also growing at around 35% per annum. Organic concepts are merging with Islamic values
Aveda The Body Shop Thursday Plantation
Sureco Hain CelestialGroup
Est. Sales USD120million (1996)[i] USD619mil
(2006)
USD1.5Billion (2006)[ii]
USD85Million (2006)[iii]
USD40Mil[iv] USD738Mil[v] (2006)
Location USA UK Australia Malaysia USA
Established 1978 1976 1976 1999 1926
Products Personal Care Personal Care Personal Care Herbs Organic food and cosmetics
Basic Philosophy To sustain the environment and
give back to communities
Social humanitarianism activism on many
issues
Natural tea tree
products/natural medicines
Halal & Toyyibaan
Free of artificial ingredients,
Kosher foods
Ethics Yes
Green Yes Yes Yes
Natural Yes Yes Yes Yes
Organic Yes Yes Yes
Community Yes Yes Yes
Cultural
Religious/Spiritual Yes Yes
Mode of Distribution Direct Marketing/Salon
Retail and e-Commerce
Direct and through
distributors
Direct Marketing
General distribution
Owner Estée Lauder Companies Inc.
Loreal Chris Dean & Family
Private Ownership
Listed company
Conclusion
An-Nur (24:38)
That Allah may reward them according to the best of their deeds, and add even more
for them out of his grace for Allah does provide for those whom He will, without measure.
Al ‘Anabut (29:7)
Those who believe and work righteous deeds- from them shall We blot out all evil (that may be) in them, and We shall reward them according to
the best of their deeds.
A shampoo is not just a
shampoo:
And in the end why do people buy
a particular product?
Heaven Strategy (Dan Hill 2010)
Emotional Response
Response Rate
Negative Positive
Low
High
More negative/high
response
More positive/lower
response
More negative/lower
response
More positive/highe
r response
Still many philosophical issues to resolve
Thank You