Exporters are called to seek certifications and conform to regulations to penetrate any halal market as they tap huge opportunities presented by the trillion-dollar global halal market.
In an event organized by the ASEAN Access MATCH, Thai Muslim Trade Association (TMTA) president Marut Mekloy underscored the need for having halal-certified products to enter any halal market, which is not just for the Muslims but also for health-conscious consumers and those looking for cleaner and high quality products.
“…People who are interested in keeping healthy –-that’s getting bigger and bigger all over the world especially in the European market, in the American markets,” he said.
Haji Mohammad Hadilah Haji Abd Manaf, acting Assistant Director at Ministry of Finance and Economy Brunei, said food and other halal products, including cosmetics and pharmaceuticals, are governed by other requirements such as Hazard Analysis and Critical Control Points (HACCP) and International Organization for Standardization (ISO).
“So it’s also important to keep yourself abreast of all these requirements. Having a halal certification is a bonus to everything. However, you also need to actually ensure that for certain countries, there will also be required standards to be adhered (to) for the production side,” he said.
Manaf said requirements and standards of each country differ depending on the products intended for export.
Mohamad Romzi Sulaiman, head of International Cooperation Industry Development Division at Halal Development Corporation Berhad in Malaysia, advised exporters to determine custom and other regulations before penetrating a particular market.
“I believe each country has its own county commissioner. They have knowledge, they are sharing experience in order for us to really understand, before the MSMEs (micro, small and medium enterprises), or even any companies who wish to go to a specific market,” he said.
Sulaiman said understanding a market’s acceptance of a particular product is also important.
Dr. Sufiana Sarisae, lecturer at Halal Institute Price of Songkla University, said they also need to study the market itself by getting basic statistical information about the country such as the number of its population, gross domestic product (GDP), GDP per capita and the exchange rate.
“In order for us to export to the market, (the) exchange rate is one of the main factors that we have to focus (on) as well because it will choose (whether) our products in the final destination are more expensive or cheaper as compared to the products in that particular country,” she said.
“We have (also) to understand the customer behavior in those particular countries and then also who are the main players in those particular countries –whether they are the producer of the similar product of ours or substitute (product)…. or ingredients of the products,” she added.
Helma Agustiawan, head of Sharia Business Incubator from Indonesia’s National Committee for Sharia Economy and Finance, said securing lifestyle data of customers is also crucial.
Agustiawan cited data indicating that more than 56.7 percent of the people in Indonesia live in urban areas with a modern lifestyle and increasing purchasing power.
“That’s a very big market if you want to enter the Indonesian market… Indonesia is a large, fast-growing, and young Muslim population,” he said.
Moreover, Mekloy said participating in the halal trade fair exhibitions and understanding the distribution channel are also imperative.
“You get exposure for your products and get a chance to know more about how the people actually feel about your product, what is the improvement you need to change or make,” he said.
Mekloy cited a recent survey that showed 65 percent of the Thai Muslim millennials prefer to purchase halal products online.
“…While traditional markets remain important, e-commerce is becoming increasingly popular among younger Muslim consumers,” he said.
“If you have food products but then it’s not easily available for people to order or to buy from, and especially when in the beginning you don’t have much budget, then you should consider the online channels and things like that. It could be much cheaper and more manageable,” he added.
