The emerging Halal cosmetic and personal care market: Integrating towards the tawhid

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


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



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


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Knowledge. Three sources based on Iman, a) intellect (‘aql), experiences and revelations (wahy). Guided by

Iman.

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



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


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



The path shown by Allah (SWT). The divine law.

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



A holistic life where one looks after worldly comforts and also prepare for the hereafter.

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



An individual’s obligation to perform one’s religious duties.

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



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.



HACCP

GMP


& business

Community Benefit

Toyyibaan

Clean Healthy

Non-exploitive

Traceable

Supply Chain

Ethical

Prohibited by Allah in the Al-Qur’an



HACCP

GMP


& business

Community Benefit

Toyyibaan

Clean Healthy

Non-exploitive

Traceable

Supply Chain

Ethical

Permitted by Allah in the Al-Qur’an

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Mutual consent

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



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


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Worship. Relates man to Allah through spiritual acts. The

manifestation of Amal salih (pious actions).

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Piety

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



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


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Trust by God in man in the all encompassing concept of nature

(tabi’ah)

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Inclination towards destruction

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



The concept of Al-Falah requires Muslims to win and be successful in both this world

and the hereafter.

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



Islamic community

Tawhid


Fard’ain

Fard’ Kifayah

Al-Ilm

Al-Amal

Shu’ra

Adab

Halal Toyyibaan



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

The emerging Halal cosmetic and personal care market: Integrating towards the tawhid

Spiritual

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