UFL
12-08-2005, 01:00
http://news.ft.com/cms/s/b260d26c-0a04-11da-b870-00000e2511c8.html
By Meg Carter
Published: August 11 2005 03:00 | Last updated: August 11 2005 03:00
Politicians are reaching out to Muslim communities seeking to secure their integration rather than isolation from mainstream society, but a growing number of businesses across Europe have long been doing the same.
Mainstream brands have recently acknowledged the rising importance of Muslim consumers. Heineken, the Dutch brewing giant, meanwhile, has decided to roll out the non-alcoholic malt drink Fayrouz internationally.
In the UK, Lloyds TSB is the latest high street bank to introduce Islamic banking services, while GlaxoSmithKline has secured halal endorsement from the Muslim Law Council for its Ribena and Lucozade drinks. And Sony Computer Entertainment Europe is supporting the UK launch of PlayStation Portable with an exhibition of Arabic art this month.
The opportunity for businesses is highlighted by the recent success of niche brands that cater specifically for Muslim consumers.
"Mainstream brands have ignored us for many years because we've not been very demanding," says Khalid Sharif, managing director of Ummah Foods, a UK business that last year launched halal chocolate. "But 9/11 forced us to come out as a community. Muslims are upset at the way they've been treated by mainstream media. This has led to mistrust of many [media] outlets and, among younger Muslims, a new-found interest and pride in their culture and religious heritage, and a willingness to make a statement by what we buy."
Ummah Foods, which has identified market potential for more than 25 other Muslim food and drinks products, is promoting its halal chocolate to consumers through mainstream media, Muslim media and grassroots marketing in mosques.
Over the past few years, Muslim entrepreneurs have launched other niche brands including Mecca Cola and Qibla Cola. Muslim media in Europe has been expanded to include television, newspapers, lifestyle magazines and consumer websites.
Indeed, regardless of the sociopolitical climate and concern about disengagement from wider society, mainstream brand owners have been waking up to Muslim consumers' needs because of the growth in the number of Muslims living in Europe. The Muslim population of European Union countries exceeds 15m, according to current estimates that suggest this figure will double by 2015. The EU's non-Muslim population is likely to shrink by 3.5 per cent over the same period.
"This is a young community which is growing in size and confidence fast," says Shazia Nizam, a marketing consultant at Presstop Creatives, a London-based Asian and urban youth marketing consultancy. "As with any fast-growing community with money to spend, there are clear opportunities for many brand owners - should they choose to target them."
Targeting consumers by their religion, however, is a sensitive area for many businesses. At Sony Computer Entertainment Europe, Carl Christopher, the sponsorship and event manager who is behind the Arabic exhibition in London, insists PlayStation does not market directly to niche groups definedby sex, ethnicity or faith.
"We want to explore different cultures to devise new ways to engage with our audience," he explains. "Our interest in Arabic art and calligraphy isn't about targeting Muslims specifically - the appeal of our brand must be inclusive and far broader. We don't market by religion - you have to be sensitive to how people might react."
Others see direct engagement with Muslim consumers as a way to grow their business. "If something is an important part of a consumer's life brand owners should acknowledge it," says David Brain, European chief executive of Edelman, the public relations company. "With the growing prominence of Muslims within western markets, it is inevitable brand owners must respond. Already companies are paying close attention to demographics, psychographics and ethnicity; religion is the new frontier."
For GlaxoSmithKline, gaining halal status for Ribena and Lucozade was important to secure and grow an already established Muslim consumer base. "Research showed Muslim consumers enjoy these products, but that some were concerned about minute trace elements of alcohol that is found in virtually all soft drinks," explains Simon Kemp, GSK's marketing category director for Lucozade.
Working with representatives of its own Muslim staff, Muslim community leaders and an independent laboratory, GSK demonstrated the two products had no greater trace elements of alcohol than would have been found in soft drinks consumed by Muslims generations ago. Its conclusions were investigated and approved by the Muslim Law Council.
HSBC bank was one of the first to engage directly with Muslims in western markets when in 1998 it set up a specialist Islamic finance division. HSBC Amanah caters for Islamic restrictions on paying and receiving interest and deals with investments only in businesses whose activities comply with Islamic law.
However, Mohammed Ismaeel, HSBC Amanah's global director of marketing, says businesses should not assume Muslim consumers are a homogeneous group. "In the UK we assumed we could market to Muslims using dedicated media," he says. "We came to realise that many younger Muslims prefer to be reached via mainstream media."
Another consideration is culture. Although Muslim consumers share a faith, whether their families ÂÂ*originate from south-east Asia, north Africa or Turkey also shapes their buying ÂÂ*habits. But brand owners should not be put off, Ms Nizam believes. "Targeting consumers by lifestyle and outlook has become commonplace," she says. "The time is right for brands to acknowledge the impact religion can have on certain consumer groups' interests and behaviour, too. Companies that make the effort to understand this market can only gain respect."
By Meg Carter
Published: August 11 2005 03:00 | Last updated: August 11 2005 03:00
Politicians are reaching out to Muslim communities seeking to secure their integration rather than isolation from mainstream society, but a growing number of businesses across Europe have long been doing the same.
Mainstream brands have recently acknowledged the rising importance of Muslim consumers. Heineken, the Dutch brewing giant, meanwhile, has decided to roll out the non-alcoholic malt drink Fayrouz internationally.
In the UK, Lloyds TSB is the latest high street bank to introduce Islamic banking services, while GlaxoSmithKline has secured halal endorsement from the Muslim Law Council for its Ribena and Lucozade drinks. And Sony Computer Entertainment Europe is supporting the UK launch of PlayStation Portable with an exhibition of Arabic art this month.
The opportunity for businesses is highlighted by the recent success of niche brands that cater specifically for Muslim consumers.
"Mainstream brands have ignored us for many years because we've not been very demanding," says Khalid Sharif, managing director of Ummah Foods, a UK business that last year launched halal chocolate. "But 9/11 forced us to come out as a community. Muslims are upset at the way they've been treated by mainstream media. This has led to mistrust of many [media] outlets and, among younger Muslims, a new-found interest and pride in their culture and religious heritage, and a willingness to make a statement by what we buy."
Ummah Foods, which has identified market potential for more than 25 other Muslim food and drinks products, is promoting its halal chocolate to consumers through mainstream media, Muslim media and grassroots marketing in mosques.
Over the past few years, Muslim entrepreneurs have launched other niche brands including Mecca Cola and Qibla Cola. Muslim media in Europe has been expanded to include television, newspapers, lifestyle magazines and consumer websites.
Indeed, regardless of the sociopolitical climate and concern about disengagement from wider society, mainstream brand owners have been waking up to Muslim consumers' needs because of the growth in the number of Muslims living in Europe. The Muslim population of European Union countries exceeds 15m, according to current estimates that suggest this figure will double by 2015. The EU's non-Muslim population is likely to shrink by 3.5 per cent over the same period.
"This is a young community which is growing in size and confidence fast," says Shazia Nizam, a marketing consultant at Presstop Creatives, a London-based Asian and urban youth marketing consultancy. "As with any fast-growing community with money to spend, there are clear opportunities for many brand owners - should they choose to target them."
Targeting consumers by their religion, however, is a sensitive area for many businesses. At Sony Computer Entertainment Europe, Carl Christopher, the sponsorship and event manager who is behind the Arabic exhibition in London, insists PlayStation does not market directly to niche groups definedby sex, ethnicity or faith.
"We want to explore different cultures to devise new ways to engage with our audience," he explains. "Our interest in Arabic art and calligraphy isn't about targeting Muslims specifically - the appeal of our brand must be inclusive and far broader. We don't market by religion - you have to be sensitive to how people might react."
Others see direct engagement with Muslim consumers as a way to grow their business. "If something is an important part of a consumer's life brand owners should acknowledge it," says David Brain, European chief executive of Edelman, the public relations company. "With the growing prominence of Muslims within western markets, it is inevitable brand owners must respond. Already companies are paying close attention to demographics, psychographics and ethnicity; religion is the new frontier."
For GlaxoSmithKline, gaining halal status for Ribena and Lucozade was important to secure and grow an already established Muslim consumer base. "Research showed Muslim consumers enjoy these products, but that some were concerned about minute trace elements of alcohol that is found in virtually all soft drinks," explains Simon Kemp, GSK's marketing category director for Lucozade.
Working with representatives of its own Muslim staff, Muslim community leaders and an independent laboratory, GSK demonstrated the two products had no greater trace elements of alcohol than would have been found in soft drinks consumed by Muslims generations ago. Its conclusions were investigated and approved by the Muslim Law Council.
HSBC bank was one of the first to engage directly with Muslims in western markets when in 1998 it set up a specialist Islamic finance division. HSBC Amanah caters for Islamic restrictions on paying and receiving interest and deals with investments only in businesses whose activities comply with Islamic law.
However, Mohammed Ismaeel, HSBC Amanah's global director of marketing, says businesses should not assume Muslim consumers are a homogeneous group. "In the UK we assumed we could market to Muslims using dedicated media," he says. "We came to realise that many younger Muslims prefer to be reached via mainstream media."
Another consideration is culture. Although Muslim consumers share a faith, whether their families ÂÂ*originate from south-east Asia, north Africa or Turkey also shapes their buying ÂÂ*habits. But brand owners should not be put off, Ms Nizam believes. "Targeting consumers by lifestyle and outlook has become commonplace," she says. "The time is right for brands to acknowledge the impact religion can have on certain consumer groups' interests and behaviour, too. Companies that make the effort to understand this market can only gain respect."