Analysis of the halal industry

Analysis of the halal fabricationThe world Moslem population is growing to a total of 1.6 one thousand thousand people. By 2025, Muslims be pass judgment to account for 30% of the worlds population.As for halal products, there ar about 1.5 billion consumers, This means that adept out of every four human beings consumes halal products. At present, Southeast Asia and the oculus East argon the two strong market places for halal products (Riaz, 1998).As at 2008, the halal Industry has amounted to USD2.1 one million million million. This is certainly an important market to tap into. The proper industry which also take ons Islamic finance is estimated to be worth between USD200 billion to USD500 billion annu totallyy, with an annual growth rate forecast of 12% to 15% for the next 10 years.merchandising efforts to supply certified halal products throughout the world ar gaining momentum. Demands for proper-certified products have increased exponentially not only because the Mus lim consumer base is growing further also due to the fact that halal products straightaway appealingness to a broader spectrum. proper has become the raw benchmark for safety and quality assurance. The growing appeal and benefits of this niche market is significant. Major non-Muslim countries deal Australia, New Zealand, South Africa, Canada and the U.S. have already established their topical anaesthetic anesthetic production for the Halal market.The key driving factors for the externaliseed growth of the Halal market are as followGrowth in the Muslim population, the elementary market for Halal food for thoughtRising incomes in primary markets for Halal foodIncreasing demand for safe, high quality food in primary marketsIncreasing demand for greater variety in primary marketsIncidents of food marketed as Halal but failing to meet Halal requirementsDevelopment of the Asian Halal MarketAsia has the largest Muslim population of either given region, but the population has mod est per capita incomes, and hence trim down total food consumption than early(a) areas. For example, high population countries like India and Pakistan have relatively low consumer incomes and consequently exhibit lower per capita protein consumption. in spite of lower income levels, this region has been at the forefront of capitalizing on the growing Halal market.Malaysia, Thailand, capital of Singapore, the Philippines, Brunei, China and India have all interpreted steps to tap into the global Halal market. For instance, the Singapore food industry has also taken a number of steps towards becoming a Halal hub, including an advertising campaign in the Middle East. Malaysia has also designs on becoming an international Halal hub and its government has taken a number of measures to wear that objective including the establishment of the Halal Development Corporation. Thailand has moved to become a recognized Halal amount of excellence in science and testing.Brunei is currently co-o perating with Australian companies in order to com put ine its authority in the Muslim world with Australias track record in safe, high quality food production. The Chinese Halal industry is growing and is expected to expand its role in the global market. At the moment, the key avail of the Chinese Halal industry is access to cheap labor. China recently signed a inscription of Understanding with the European Commission (EC) and already has several EC-approven companies ready to export Halal products to European markets. Indian exporters are attempting to gain recognition through the achievement of HACCP, ISO and Halal enfranchisement.Halal Market in Singapore and the internationalization of Singapores Halal ServicesMajils Ugama Islam Singapura (Muis), which is also known as the Islamic Religious Council of Singapore, is the Islamic way in-charge of Muslim affairs in Singapore. Muis was established as a statutory board in 1968, when the disposition of Muslim Law Act (AMLA) came into effect. Muis is to advise the President of Singapore on all matters relating to Islam in Singapore. Among otherwise things, Muis provides Halal Certification inspection and repairs.Muis is vested with the powers to act as the sole authority to administer and regulate Halal certification in Singapore. This is clearly stipulated in AMLA.By 2009, Muis certified more than 2,600 premises and has played an important role as the custodian of Halal food assurance for Singapores 15% Muslim population. Furthermore, the promising Halal food industry with the availability of many Halal-certified eating establishments has helped to foster social interaction between individuals from diverse racial, heathen and religious backgrounds.Halal Certification provides assurance to all Muslim consumers because it fulfills the Syariah law, which is a must for Muslims. To the non-Muslims, Halal products are quality products, simply due to the concept of halalan thoyyiban (Halal and wholesome)Intro duction of Warees HalalAs the Singapore Halal certification is well regarded and globally recognised, it has generated strong interests from companies, both(prenominal) in Singapore and beyond, planning to embark on the MUIS Halal Certification scheme and adopt the Singapore MUIS Halal Quality Management (HalMQ) system. Warees Halal, a division of MUIS infantryman Warees Investments Pte Ltd, has been given the task of helping companies to attain certification.At the present moment, being the subsidiary of Muis, Warees Halal leverages on the existing Muis eHalal System to manage all aspects of the Halal Certification Process . Apart from this system Muis has occupied a third-party vendor Marshall Cavendish Business training Pte Ltd, to manage its directory portal httpwww.singaporehalaldirectory.com.Warees Halal is currently exploring new ways to improve and streamline their work processes and expand their r distributively to the global halal market. And one of initiatives is flow Business Model for Halal Global MarketCurrently, the major marketing channel for the Halal good suppliers and retailers is the commodity wholesale market. However, when the retailers make purchases in the wholesale market, the dominant suppliers may offer products that are not Halal certified. Besides, the retailers may be inconvenient to collect information on the monetary value and other expound of the Halal products. The current line of products model is the directory and credit line portal.The average online halal directory and moving in portal like the Singapore Halal Directory acts as a mere introductory service. Once the Buyers have identified products and suppliers of interest, both parties will have to move offline and continue using emails, faxes and myriads of spreadsheets that result in complexities, errors and added bes.According to the World flip-flop Organization the average international trade transaction involves 20-30 different parties, 40 documents, 200 data elements (30 of which are repeated at least 30 times).The complexities of import-export add as much 15% administrative budget items to the actual cost of goods.In todays highly competitive global markets, Suppliers and their clients need to reduce and even exit inefficiencies that result in higher costs and possible loss of market share.Technological Challenges faced in this current modelStandardisation and communication management between Warees Halal Staff and their clientsAnother challenge is the global outreach restriction due to geographical factors and limitation due to the current information technology floorEmerging Business ModelsEconomists said that the growth of Global Halal market is definitely depending on the involvement of E-commerce and Halal E-marketplace.In fact, the regional Muslim countries like Malaysia, Brunei Darussalam, and Singapore are currently speeding up the promotion of Halal concept, which aims to integrate the Halal producers and marketers. Thus , the development of Halal E-marketplace is facing huge challenge, in the spot of having qualified Halal certified food producers to join in the Halal E-marketplace as to ensure the safety, hygienics and fairness of the commodity trading.Some of the Halal E-marketplaces includes the daganghalal web site from Malaysia, zabihah.com a site with an directory which is a Halal business yellow pages in UK.Besides these sites, some of the Government Halal E-marketplace which are only include the Australian Halal sustenance Directory and Singapore Halal Directory.Halal E-Commerce Leaders in the industryZabihah.com (http//www.zabihah.com)Zabihah.com is the largest database of Halal restaurants and markets.Based in the USA, it was created in July of 1999. And till to this date, zabihah.com has become an indispensable resource for Muslim communities worldwide.DagangHalal.com (http//www.DagangHalal.com)DagangHalal.com, based in Malaysia is one of the B2B e-marketplaces featuring Halal product s and go. It provides an online platform as well as other business sourcing channels for our merchants to reach out to a potential worldwide Muslim market of 1.8 billion consumers (estimated worth US$500bil to US$2 trillion global Halal trade value).HalalBusinessDirectory.com (http//HalalBusinessDirectory.com)The Halal Business Directory, a UK Based Website provides a free service to Halal Businesses enabling them to publicise their online presence, and a free service to the public to help locate local businesses. Both user friendly and search engine friendly, the Halal Business Directory also provides a business listing with contact details, products and service, and a link to selected businesses websites.Halalexchange (http//www.halalexchange.com)Halal Exchange is a joint venture project in UAE between Halal Exchange Inc. and RAK Investment Authority under the patronage of His Highness Prince Saud bin Saqr Al Qasimi Crown Prince and Deputy Ruler of Ras Al Khaimah.Halal Exchange i s a web-based enterprisingness solution for the challenges of Global Sourcing. Founded in January 2002, the mission focused exclusively on developing the standard template for the complex, costly and convoluted import export process. The proprietary eCatalogue-Transaction Engine delivers immediate results in increase of business volume and higher profit margins.Halal Exchange is headquartered in Vancouver with offices in Kuala Lumpur, Shanghai, Dubai and San Francisco.Australian Halal Food Directory (http//www.halal.com.au/)Halal.com.au is Australias first comprehensive Halal dining guide. Our aim in launching this site is to give Muslim people around Australia a handy resource to find Halal restaurants, cafes and other eateries. Of course, we hope that this site can be of use to non-Muslims as wellSingapore Halal Directory (http//www.singaporehalaldirectory.com)(Waiting for info from Razali)Present Information Technology InfrastructureFuture or Proposed Information Technology In frastructureE-commerce and online business portal had been proved to be one of the best e-business solutions to penetrate the rising market. However, not much e-commerce portal either by government or private sector that focuses on the Halal market has being seen in the Halal trade market.B2B Model, B2C ModelE-marketplace is an electronic exchange marketplace where companies register as sellers or buyers to communicate and result business over the Internet. The E-marketplace has become an important electronic shopping environs that may evolve into a dominant force in Internet marketing. Most of the E-marketplaces with online stores are offering competing products. Featuring is associated with a price tribute and it serves as a mechanism to mitigate competition among online stores. In essence, featuring facilitates a convenience-price trade-off. Those consumers who find that the cost of clear-cut outweighs the benefit of a lower expected price shop at the featured store where th e price is higher on average.The E-Commerce mechanism of the Halal E-marketplace can improve trading efficiency and lower the cost of collecting information as well as the purchase price. The E-marketplace can use a cabal of pictures, literal description, and regulated classification to introduce the quality and details of the traded commodities.Hence, Halal E-marketplace is found to be an emerging e-marketplace for the global Halal industries since the early years. Contradicted to the conventional E-marketplace, one of the unique features of Halal E-Marketplace is that it requires all the Halal businesses and services to be provided and transacted online according to the Halal principles and Muslim set. This is to ensure the benefits of the Halal consumers from around the world.The unique features of the Halal E-Marketplace includeOnly the Halal certified products and services can be exhibited and traded onlineOperated according to the Halal principles and Muslim valuesCultivate the Islamic values of Hygiene, Sincerity, Fairness and TrustworthinessPromotes the right way of doing trading activitiesEconomic Benefits of the Halal E-marketplaceHalal industry businesses and services providers can be benefit from the Halal E-Marketplace. For example, Halal food producers representing each section in a supply-chain could join Halal e-marketplace to transfer information and purchase products. They may operate on a cost-recovery basis by an independent third party ( much(prenominal) as an industry association) or be set up as a business offering, with a middle-person providing a value-added function such as transaction services. Services offered by Halal E-marketplaces include the business directory listings, electronic catalogues for online purchasing of goods and services and trading or transaction services. Halal E-marketplaces that are worth considering are those that interconnect with other marketplaces and brook low-cost connection to a firms financial accou nting systems.The economic benefits of the Halal E-marketplace may include great opportunities for the Halal suppliers and buyers to make new trading partnerships, either within their supply-chain or across supply-chainsThe potential to lower the costs of negotiating and making transactions with automation of standard business proceduresThe potential for more transparent set as Halal buyers and sellers take the opportunity to trade in a more open environmentThe opportunity to access value-added services such as inventory control and management of dispatch and distribution processes using electronic systemsProduct or Service Customer AnalysisWhat are you selling?Whom are you selling it to?How do the products differ among competitors in the same business?Who are your primary customers?What do your customers speak out about your business strengths and weaknesses?