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India –an untapped market for
halal products
Yusuf Hassan and Anirban Sengupta
Fellowship in Management, Indian Institute of Management Indore, Indore, India
Abstract
Purpose –India has an over-180-million Muslim population, which makes it an ideal marketplace for
halal products. However, not much research has been done to understand the opportunities and
challenges pertaining to halal business in India. The purpose of this study is to explore and examine
how halal products are perceived by the Indian consumer and how these products are creating values
for a larger consumer base.
Design/methodology/approach –The paper opted for an exploratory study using an inductive
approach. To understand the peculiarities of the issue, the authors also used the case-research approach to
develop a broader understanding of the topic.
Findings –Findings of this study show that the market and consumers are increasingly becoming more
aware of halal products in India. Further, the demand for such products is no longer limited to Muslims. Halal
products have also become an attractive option for consumers, as they are also addressing safety and
environmental concerns. This is an essential factor for a flourishing certification business in India.
Research limitations/implications –A limitation of this study is a quantitative study which could
have been conducted to confirm the findings of this research. Further, the sample was limited to participants
in the age group of 21-30years. Older people might share a different perspective on halal products because
they are believed to be more experienced and socially conscious. Further, our cases were limited to a certifying
agency and cosmetics agencies.
Practical implications –One important implication of this study is that it reaffirms the success of
Islamic branding in the India context. Though this research was carried out on a limited scale, it opens up
opportunities to examine the halal phenomenon in more detail. Acceptability of halal products among non-
Muslims is a sign of growing tolerance among different communities to accept and adopt culture and
practices of a different religion in their daily living.
Social implications –The authors have observed that halal products and Islamic branding as a whole
can positively help in reshaping the image of Islam across the globe. Observations such as identifying halal
products being eco-friendly reflects the increased sensitivity among the consumers in the developing nations,
which were earlier a behavior common among the Westerners.
Originality/value –To the best of the authors’knowledge, no other study has been done to explore the
halal product market and consumers’perception in the Indian context. This is particularly an important
contribution because India is a home for over 180 million Muslims and a marketplace worth trillions of
dollars. Further, past research in the area of religious marketing was limited to conceptual papers. This paper
is an attempt to re-initiate discussion through empirical studies on Islamic branding in the emerging
economies context.
Keywords Sustainability management, Emerging market, Islamic marketing, Halal,
Faith-based marketing
Paper type Research paper
Introduction
Marketing is considered a highly context-specific discipline in the field of management
(Sheth and Sisodia, 1999). Historically, marketing management evolved through exploration
and adoption of new constructs which were unique to specific demographics (Seth, 2011).
Untapped
market for
halal products
Received 30 September2018
Revised 4 October2018
3 December 2018
28 January 2019
Accepted 29 January2019
Journal of Islamic Marketing
© Emerald Publishing Limited
1759-0833
DOI 10.1108/JIMA-09-2018-0179
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1759-0833.htm
Emerging economies were one such context which was able to draw the attention of
marketers (Hitt et al.,2000;Hoskisson et al.,2000;Burgess and Steenkamp, 2006). Partially,
this attention helped in the growth and development of emerging nations. For example,
since the late 1990s, these nations have been able to attract significant shares of foreign
direct investments compared with other countries (Weigel et al., 1997;Moran, 1998;
Agrawal, 2015). Multinational corporations (MNCs) are making substantial investments in
the emerging economies as part of their global expansion strategies (Cui and Liu, 2000).
Initially, MNCs achieved minimal success in penetrating the local markets. Later, the socio-
political dynamics in these countries went through series of transformations which
facilitated foreign businesses to establish themselves (Murtha and Lenway, 1994; Prahalad
and Lieberthal, 1998; Cui and Liu, 2000;Jensen, 2008;Jadhav, 2012).
Marketing in emerging nations has been widely discussed in the literature (Sami, 2004;
Seth, 2011; Burgess and Steenkamp, 2006;Guzmán and Paswan, 2009). However, studies on
faith-based marketing, especially Islamic marketing, in the context of emerging economies is
a recent development, and such studies are limited to few Southeast Asian nations such as
Malaysia, Indonesia and Vietnam (Wilson and Hollensen, 2010;Haque et al.,2015;Battour
and Ismail, 2016;Ahmad, 2018). Review of existing literature shows halal food, which is a
by-product of faith-based marketing, has not been able to draw adequate attention from the
scholars in the India context. This appears to be a severe concern for us because India
is home to over 180 million Muslims who are believed to be the largest consumer of halal
foods (Census, 2011; Haque et al.,2015;Butt et al.,2017). The global halal product market is
currently valued at US$2.3tn with the most significant market lying in the Asian countries
only (Latif et al.,2014). This study is an attempt to understand the perceived value and
usefulness of halal products in India on the one hand, and how halal certification can
influence this perception on the other hand. Halal products have been found to be widely
used by even communities other than Muslims.
Further, the scholarly understanding of halal products has entered into a new paradigm.
Speculations are being made that halal products can address some critical socio-political
issues affecting Muslims globally (Wilson et al.,2013). Therefore, there is a need to
understand the concept in detail. Suggested implications would open ground for further
research in this area.
Literature review
Increasing globalization and multiculturalism is giving rise to socio-political and economic
changes at different levels (Jamal and Sharifuddin, 2015). Cultural swapping, one such
noticeable change was studied by Oswald (1999). He stated that individuals borrow the
culture and value of both their home country and the country where they migrate to or settle
in. The pertaining question here is: Does this argument holds in the case of business and
religion as well? Do MNCs borrow elements of their culture (home nation) to their host
market? The Japanese firm is an ideal example to answer the question of business (Kelts,
2006). Similarly, Islam would be an interesting example to see how the religion of emigrants
in a host country can induce cultural swapping (Soysal, 1997).
Today an estimated 1.8 billion people, i.e. 24 per cent of the world’s population, are
believers of Islam (Grim and Karim, 2011). Islam has become the fastest growing religion in
continents such as Europe and America (Morey, 2011). As a result, the demand for products
and services which adhere to Islamic practices is inevitable (Omar and Jaafar, 2011;Wilson
and Grant, 2013; Ahmad and Rahman, 2015).
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Halal products and consumers
Customers’loyalty is determined by their perceived value for the given products or services
(Chen and Hu, 2010). Higher perceived values can offer competitive advantages for the firms
(Woodruff, 1997). Food as a product or commodity derives its values from society. Within
the society, social institutions such as religion have a significant influence on our perceived
value for the food products (Shepherd, 1989;Jamal and Sharifuddin, 2015). Thus, the fact
that halal products as food items derive their value from religion and society is not
surprising.
The term “halal”is an Arabic word which means permitted or lawful under Shariah, i.e.
Islamic law (Berry, 2000;Mukhtar and Butt, 2012). The concept of halal influences
consumption practices of millions of Muslims across the globe. Unlike our general
understanding of a product, the concept of halal is not merely a brand element. As Wilson
and Fan (2010) stated that halal food “reflects a larger belief system and moral code of
conduct.”The global demand for products which adhere to Islamic law generates an annual
$632bn worth of sales for the food industry alone (Izberk-Bilgin and Nakata, 2016). Halal is
the all-encompassing concept with various connotations because of social and cultural
differences. Therefore, a detailed examination of its definition and scope can offer us some
exciting management lessons (Alserhan, 2010).
Better opportunities for education, access to new information, advancement in
technology and higher income have increased participation of Muslims in consumer culture
(Haenni, 2009; Young, 2010). An example of this change can be observed in the banking
sector. Introduction of Shariah-compliant financial products such as credit cards and
insurance plans has brought a large section of the Muslim population under this business.
Similarly, the fast-moving consumer goods (FMCG) have reported rapid growth in demands
and sales of such products (Ameur, 2011;Aoun and Tournois, 2015). The advantages of
marketing such products are that their perceived values are governed by the trust which is
directly sourced from the religion. Religious conformity prevents further evaluation by the
consumers (Batey, 2009).
Theoretically, the consumption of halal products can be understood from the theory of
reasoned action (TRA). The theory which was proposed by Fishbein and Ajzen (1975) states
that there are two major determinants of our intentions (for an action). The two
determinants are individual’s characteristics and social factors such as social norms,
prevailing ideology or beliefs. The former regulates the individual’s decision based on their
evaluation of perceived outcomes for their actions. The latter, however, reflects the role of
society in creating the necessary pressure to act in a precise manner. We call it subjective
norms (Lada et al., 2009). These subjective norms play an essential role in our purchase
decisions. For example, Muller et al. (2000) found that religion can strongly influence our
decisions to buy a product or follow certain dietary. Based on what religion prescribes and
availability of that product, we get attracted to certain commodities (Sack, 2001; Dindyal,
2003). Consumers’purchase intentions for meat (and meat products) have been found to be
more strongly governed by religious beliefs than those for any other commodities
(Shatenstein and Ghadirian, 1997). This is one of the reasons why halal products are
prioritized over any other form of processed meat by the Muslims. Figure 1 provides an
overview of the process involved in the decision making for the consumers.
The success of halal product market in establishing itself as an emerging new form of
business cannot be looked through a narrow lens. Wilson et al. (2013) have stated that the
traditional understanding about a religion does not necessarily hold in the case of Islam. The
authors have described Islam as a way of life and form of lifestyle. This is a compelling
argument because if halal as a by-product of Shariah or Islamic jurisprudence has been able
Untapped
market for
halal products
to create and establish a market of its own, why not we have a Hindu product or a Catholic
product having an equal demand and status in the marketplace (Kartajaya and Dwi Indiro,
2009;Wilson and Hollensen, 2013)?
Sustainability and halal products
Studies (Verbeke, 2006; Hanzaee and Ramezani, 2011;Rezai et al.,2012) have examined the
concept of “halal”from the sustainability management frameworks. The term sustainability
management has been defined as “the formulation, implementation, and evaluation of both
environmental and socio-economic sustainability-related decisions and actions”(Starik and
Kanashiro, 2013). Sustainable management involves efficient use of available resources
without causing any harm to the environment and society (Fullan et al.,2008;Aras and
Crowther, 2009). Sustainability management practices by firms such as manufacturing and
sales of environment-friendly products may influence the perception and purchasing
behavior of a customer. Customers have been observed to pay even more for such products
(Wong et al.,1996;Laroche et al., 2001;Haws et al.,2014). Interestingly, halal products have
been found to be environment-friendly, hygienic and safe (Lada et al.,2009;Golnaz et al.,
2010).
Sustainability management practice creates values for firms (Oliver, 1997). The
consumer is increasingly getting more sensitive toward environmental and health concerns
of products. Therefore, sustainability-management practices in manufacturing, operations
and marketing can influence consumers’buying behaviors (Mohr et al., 2001). Studies have
shown sustainable features of halal products (Malhotra, 2007;Ismaeel and Blaim, 2012;
Teng et al.,2013). However, not much research has been done to understand consumers’
perception about the sustainability features of these products (Rezai et al.,2012).
Study I: case studies
In this section, we have examined the business models of two emerging businesses in the
halal segment, namely, a halal-certifying agency and a halal personal care product company.
We relied on different secondary sources such as news articles, internet and experts to
identify these organizations for the study. The main criteria to shortlist the company was
the kind of products and services offered by the company and its relevance to a halal
product. An e-mail stating the purpose and objectives of the study was sent to the HR
personnel concerned, and telephonic interviews were scheduled. The authors also referred to
the company’sofficial website for more details about their products and services. Finally,
the draft case study was shared with the organizations to ensure no information has been
left out.
Figure 1.
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Jamiat Ulama-I-Hind Halal Trust
Jamiat Ulama-I-Hind (here referred to as JUH) is considered the most significant and oldest
organization working for the upliftment of Muslims in India. JUH is a registered NGO which
was established in the year 1919, with its headquarters in New Delhi. The contributions of
JUH to society and politics can be understood from their role in India’s independence
movement. In 1938, the Founding President of JUI, Sheikhul Muhaddas, exhorted Hindus
and Muslims to sink their differences and fight against the imperialism (Datta, 2002).
Deobandi (followers of revivalist movement within Sunni Muslims), who were represented
by JUL, opposed the formation of a separate homeland for Indian Muslims (McDermott et al.,
2014). The followers of the organization actively participated in the famous non-cooperation
and Quit India movements which eventually resulted in the creation of India as a free nation
(Jamiat Ulama-I-Hind, n.d.). Ever since the Independence, the organization has propounded a
theological basis for its nationalistic philosophy. The organization promotes harmony and
works for the upliftment of Muslims in India through their educational institutes, hospitals,
counseling centers, dailies and other establishments (TOI, 2009).
Jamiat Ulama-E-Hind Halal Trust (here referred to as JUHT) is a registered trust which
works under the aegis of JUH. The trust was established in the year 1982 with its first office
in Mumbai. The objective was to streamline, unify and standardize halal certification in
India. The organization is a member of the World Halal Food Council. It is also accredited by
Jabatan Kemajuan Islam Malaysia (JKIM), the regulatory authority for halal products in
Malaysia (Fischer, 2012;Bohari et al., 2017). The organization has seven regional branches
and client dealingsin more than 20 nations across the world.
The organization offers halal certification under three categories, namely, abattoirs,
processed foods and restaurants. Ahalal assurance system (HAS) in the form of a standard
operating procedure is followed to certify the business. The certificate remains valid for one
financial year subject to the satisfactory rating from auditors in period inspections. Figure 1
provides an overview of the certification process. The organization provides services to 60
out of the 70 biggest slaughterhouses, more than 400 food-processing companies and over
100 restaurants. The organization deputes full-time halal supervisors for slaughterhouses
and large processing units. Some top FMCG companies which have been certified by the
organization include Nestlé and Patanjali. Surprisingly, Patanjali is a favorite brand that has
the majority of its customers from the Hindu community, not Muslim. This is probably
because companies such as Patanjali and Sri (promoted by spiritual guru Sri Ravishankar)
are supported by spiritual organizations who are characteristic of traditional religious
groups (Sardana et al.,2018).
JUST regularly participates in the World Halal Forum which organizes an annual
conference of member organizations. Matters on halal products and marketing are discussed
at the Forum. The organization also conducts several training programs and workshops to
create sensitization among the consumers regarding the certification (Figure 2).
Now let us try to examine JUST from the business model framework proposed by Morris
et al. (2005, p. 730). A business model is defined as “a statement of how a firm will make
money and sustain its profit stream over time.”The above definition was first proposed by
Stewart and Zhao (2000). However, a more comprehensive definition was given by Mayo
and Brown (1999).Itdefines a business model as a design for interdependent systems which
could retain business and create a competitive advantage for it. Morris et al. (2005) provided
a list of guiding principles to evaluate a business model. Based on their work, we have
examined JUHT under the following heads:
value creation: how and for whom?
source of competitive advantage
Untapped
market for
halal products
the positioning of the firm
revenue generation
organizational goals and mission
Let us try to evaluate the organization on each of the above components one by one.
Value creation
JUHT offers halal certification services to manufacturing units, abattoirs and restaurants.
Meat products from their client’s abattoirs are meant for export purposes only. The
organization is the only authorized certifying agency formeat export from Indiato countries
such as Malaysia and Indonesia. This adds more credibility and value to the organization.
The organization conducts regular meetings, workshops and conferences on relevant
themes to create awareness about halal certification among the client groups and
consumers. The organization takes serious cognizance of inquiries and grievances on halal
products to maintain quality services. It has created a set of new jobs by appointing experts
on Islamic jurisprudence and food processing as halal supervisors, certified halal auditors
and grievance redressal managers. These individuals undergo intensive training programs
designed and conducted by international agencies.
With over 400 companies, 60 slaughterhouses and close to 100 restaurants under their
preview, their certified products are served more than a 2.5 million people across the globe.
The clients and the remaining end customers include not only followers of Islam but also
Christians, Hindus, Sikhs, Jews and other communities. Nestlé India which itself has a
market capitalization of over INR (Indian rupees) 1bn is one of the biggest clients for the
organization (ET,2018). In a way, the organization is creating values for multinational
FMCG companies, small-scale industries, retailers and the public. The organization is also
contributing to capacity building by training personnel of their clients. Table I summarizes
the activities involved in their business.
Figure 2.
Stages involved in the
certification process
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As evident from the above discussion, value creation for halal products and related
businesses are driven by religion and not consumers alone. Religion acts as an invisible
force to tie these businesses. Further value creation is also done by attaining legal sanctions
and privileges. JUHT is creating value by being recognized for its work by the state.
Competitive advantages and positioning
The source of competitive advantage for JUHT comes from JUH. JUH, which is India’s
largest and oldest Muslim organization, has its regional offices in more than 22 out of 29
states in India and over 100 million membership subscriptions. As a parent organization,
JUH regulates the administration and policy decisions of JUHT.
India is home to the world’s second largest Muslim population after Indonesia, offering
an excellent opportunity for halal product businesses to flourish. Indian brands such as
Bikano has witnessed a net surge of 30 per cent in their sales in recent years. The company
has credited this growth to halal certification which they had acquired a few years ago (TOI,
2012). As is evident, the concept of halal products has gone beyond the meat market. In 2014,
Halal Care became the first Indian company to manufacture halal cosmetics. The company
has a market presence across seven states of India, and recently it raised $3m in funding to
further expand its market share. Halal cosmetics are increasingly becoming an untapped
business opportunity for developing countries (Hunter, 2012). Such product positioning is
new to India.
Another source of competitive advantage to JUHT is being the sole certifying agency for
meat export to Muslim-populated countries such as Malaysia and Indonesia. In 2017, India
exported edible meat worth $370m to Malaysia alone (DGFT, 2018). This does not include
other categories of meat products such as frozen meat and food products with meat content.
JUHT is also a permanent member of the World Halal Food Council. Being part of the
highest appellate body, JUHT enjoys certain privileges which are not available to other
Indian agencies.
Revenue generation
JUHT generates its revenue through sales of halal certificates and manpower services. They
typically charge $275.60 (taxes additional) for a halal logo and $13.78/day for auditing the
factory premise. In addition to this, the clients are charged for payment toward the salary of
halal supervisors and master trainers who are deputed at the client’soffice. The organization
Table I.
Clients Products Services
Food processing
units
Halal registration certificate, consignment
wise certification, halal processing
certification, halal supplier’s certification,
training of trainers
Pre-audit inspections, Suppliers listing,
sanitary and food safety clearance,
vocational training, workshops
Abattoirs Halal meat processing certification, halal
packaging and storage certification, food
safety and sanitary certification
Dedicated halal supervisor on
organization’s payroll, month wise,
quarterly auditing, periodic free training
facilities for employees of clients
Restaurants Halal registration certificate, safety and
sanitary certification, suppliers listing
Pre-audit inspection, customization of
kitchens as per halal guidelines, suppliers
listing with the organization
Source: Adapted fromwww.jamiathalaltrust.org/halal-certification-procedure.html
Untapped
market for
halal products
also generates revenue through workshops, seminars and conferences which are being
organized periodically. The organization has a regular income-generating model. Having
certain competitiveadvantages as discussed earlier is facilitating its growth ata faster pace.
Vision, mission and goals
The organization has the vision to become the most preferred and reliable halal certification
body in India. Its mission is to provide the required halal audit, certification and training
services, by pooling subject experts and by standardizing service protocols by applicable
global halal standards. Because JUHT is a Muslim charitable organization, it is committed to
the welfare of the Muslim population. Theoretically, we can observe a coherence between
their vision and mission on theone hand and their business practices on the other.
Halal Care: a household name for cosmetics
Iba Halal Care is India’sfirst certified halal personal care brand. The company was
established in 2014 by two sisters, Mauli Teli and Grishma Teli, who had worked in the
USA as professionals in management consulting and biotech R&D, respectively, before
quitting their jobs and moving back to their hometown to start the venture. They were
joined by Dilip Vadgama, a technocrat with 35years of experience in consultancy. Carried
away by a dream to start a cosmetics and personal care company focused on developing,
manufacturing and marketing eco-ethical products, the siblings founded Eco Trail Personal
Care (parent company of Halal Care). The launch of Iba Halal cosmetics was a result of two
years of research on market and product development by a dedicated team of experts. The
findings of the study showed that the word “halal”might have a limited understanding of
the minds of Indian consumers at present. However, the world is rapidly becoming aware of
its true meaning and its appeal as a symbol of purity, integrity and authenticity. Halal was
found to be a way of life and not just something associated with only foods. It extends to the
way one lives, does business and behaves andeven to personal care products. The company
explored more on the composition and manufacturing processes prevalent in leading
cosmetics companies and observed that non-halal ingredients such as pig fat, lanolin,
keratin, gelatine,alcohol and chemicals such as sulfates and parabens are commonly used in
these products.
In the first year of its inception, the company had launched 60 cosmetics products. By the
end of March 2018, the company was selling over 100 different products to its valued
customers (Table II). Today, the company has exclusive stores in more than seven Indian
cities. Further, the company has collaborated with some of the biggest e-commerce groups in
India such as Flipkart, Amazon and Nykaa. The company has experienced a five times
growth throughout 12months. It also exports its products to USA, Australia, Russia,
Table II.
Illustrative list of
products and
collections being
marketed by Halal
Care
Products Category Collection
Aloe Aqua, Face cream, Sunscreen SPF 50,
Face Glow Face Fairness, nourishing, face glow
Aloe Aqua Body Lotion, Deep Nourishing,
Foot Massage Cream, Perfume Body
Nourishing, body soaps, talcum powder,
body wash
Shampoo, Hair Conditioner, Hair Oil, Hair
Color Hair Nourish and shine, covered hair, hair color
Source:www.ibahalalcare.com/
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Kazakhstan, South Africa, Mauritius and other countries. International news agencies such
as BBC, The Week, CNN, IBC and World News have covered the company’s success story.
Value creation, positioning and competitive advantage
The company has been creating values by venturing into the untapped halal segment of the
cosmetics market in India. It has been successful in tapping the first-mover advantage
which is also evident from the fundings that it has received recently (Nakata and
Sivakumar, 1997;Ganguly, 2016). The company has appointed in-house halal experts and
certifying agencies to ensure that all its products meet the standard halal norms. It also
manufactures cruelty-free PETA-certified products which add more value to its marketing
strategies. Scholars have studied the role of product safety or product responsibility in
creating values for brands (Dawar and Pillutla, 2000). Organizational efforts to maintain a
high standard of quality and safety not only contributes to brand equity but also improves
financial performance (Chen, Ganesan and Liu, 2009). Halal Care is promoting safety and
quality through their unique manufacturing process, i.e. halal processing for cosmetics
which were limited to few countries until now (Aziz et al., 2010;Rajagopal et al.,2011).
Another source of value creation by the company can be traced back to the concept of halal
cosmetics itself. The concept of halal cosmetics refers to
[...] cosmetics product that only contains “permissible”ingredients according to Islamic law,
which means no animal products and no alcohol, and should ideally be cruelty-free. While, yes
these products aren’t consumed –many Muslims believe that things applied topically to one’s
body should also adhere to halal standards (Pathan, 2018).
As a result, these products usually contain natural ingredients such as leaves, fruits and
butter. This attracts many non-Muslim men and women who prefer natural makeup
products over artificial ones. By making their products more natural and customer-friendly,
halal cosmetics are creating value for the cosmetics industry (Chaudhuri and Holbrook,
2001;Aoun and Tournois, 2015).
Further value addition is also through the fact that Halal Care is the first Indian company
which manufactures halal cosmetics –a product segment which was earlier dominated by
big cosmetics companies such as Shiseido, CavinKare and Bakel. Country of origin and
brand loyalty can predict purchasing decisions (Azuizkulov, 2013). Halal Care is positioning
itself as the first choice for not only Muslim customers but also believers of other religions
and sects. Interestingly, the two founders of the company practice Jainism which promotes
vegan food habits and abstinence from cruelty against animals. Jains are known for their
age-old animal welfarepractices and vegan food habits (Szucs et al.,2012).
Revenue generation and future goals
The major source of the company’s revenue is cosmetics sales. However, recently the
company received funding from venture capitalists to expand its business. One such
funding was raised through Addvantis Enterprises, which invested INR 15 crore in 2018.
Before this, the company had received an investment of INR 6 crore from GVFL Limited.
The company is aiming to become an INR 100-crore-revenue generator by 2019. Currently,
the cosmetics business in India is worth INR 60,000 crore. The company has set a target to
occupy 12 to 15 per cent of this segment. It is already growing at theyear-on-year rate of 400
per cent.
Halal Care embraces an eco-ethical philosophy and aims to serve healthy personal care
products to the consumers. The company’s core idea is to offer products that can meet the
ethical needs of all consumers, including Muslims, Jains, vegetarians and vegans.
Untapped
market for
halal products
Study II: interviews
This section discusses the follow-up we undertook to understand the consumer side of the
halal market. This is an important strategy because it helps us to provide a broader
understanding of the concept and its implications in the daily enterprise. Study II was
guided by the following research questions that we had developed based on the literature
review:
RQ1. How individuals perceive halal products?
RQ2. Do halal products have any role in an individual’s purchase decisions?
RQ3. Why do individuals prefer or not prefer halal products?
RQ4. Do individuals perceive halal certification to add any value to a product or service?
RQ5. What is individuals’perceptions of sustainability management?
RQ6. Are the consumers able to relate halal products with the concept of sustainability?
The authors conducted a qualitative study in the form of semi-structured interviews because
studies have shown that such approaches are more focused on the context and provide an
opportunity for better interaction and flexibility (Saunders et al., 2003; Green and Torogood,
2018).
Methodology
An e-mail stating the objectives of the study was sent to first-year participants of the MBA
program and academic associates (researchers) of a reputed B-school in India. One reason
for choosing participants from this B-school was the diversity regarding native place,
religion and educational background in the population which can be found in such groups.
The B-school receives an application from individuals across the country and even abroad.
Further, existing government policies on reservations for women and certain social groups
(e.g. socially backward classes, persons with disabilities) in India facilitate the formation of a
diverse MBA class. The academic associates engaged with the institute work as researchers
and share similar distinct profiles. Another reason for choosing this sample was the
interactive paradigm in our study which allows sampling based on identified criteria
(Babbie and Mouton, 2001).
Semi-structured interviews with 15 participants were conducted. Qualitative studies
need not have a fixed number or formulafor sample size because they offer ample flexibility
to the researchers. Further, observation of recurring themes or data saturation also becomes
an indicator of what should be the ideal sample for a particular study (Guest et al.,2006;
Englander, 2012;Fusch and Ness, 2015). Further, the sample size was consistent with the
suggestions made by Guest et al. (2006) Purposive sampling technique was used to select
participants. This was done by other qualitative studies (Babbie and Mouton, 2001). Out of
the total number of participants, seven were males, and eight were females. Our objective
was to maintain an adequate sample size because small samples do not wholly represent the
population (Saunders et al., 2003). The biographical data of the participants are given in
Table III. Each interview lasted for nearly 45min. The conversations were recorded after
seeking prior permission from the participants. Before the interviews, both the authors had
developed an interview protocol separately. The two of them then discussed their respective
guides to develop a common protocol for the interviews. Contents which could not receive
consensus from both the authors were dropped. Interviews were conducted at a location
suggested by the participants to address problems concerning the environment familiar in
JIMA
qualitative studies (Easton et al., 1965). Name of participants was not recorded to maintain
confidentiality (Denzin et al. , 2006). Sample interview questions which were used include:
What role religion plays in your life?”“Tell us about your food preference”“Describe your
understanding about the concept of halal”“Does religion has any role in your purchase
decisions?”“What are the factors that you consider while making a purchase decision?”“How do
you identifier a halal food shop in the market?
Analysis
To prevent individual biases, both the authors were present during the interviews, and each
recording was converted into transcripts by both the authors separately. The authors later
exchanged their transcripts to evaluate each other’s works. Any confusion or disagreement
over narrations and other were discussed in detail and resolved (Guba and Lincoln, 2005;
Ortlipp, 2008). Authors followed the approach suggested by Whittemore et al. (2001) to
ensure credibility and validity. The transcripts were shown to the participants to provide
them an opportunity to make necessary corrections and suggests anything which remained
undiscussed earlier (Hagens et al., 2009). After the first round of coding, themes were
developed based on the suggestion given in prior studies (Moustakas, 1994;Ratner, 2002;
Marshall and Rossman, 2006; Creswell, 2007; Tashakkori and Creswell, 2007). The authors
also consulted an external expert to make necessary changes in case the authors had missed
anything during the whole process. They followed Van Kaam’s approach (Moustakas, 1994)
for analyzing phenomenological data with some minor modifications.
Findings
Religion and society
The definition of religion has gradually evolved from being limited to the theological
concept to something beyond consciousness, accumulated in experiences of an individual’s
daily enterprises. For example, Participant 1 was found saying:
Table III.
Participant Age Religious belief Gender
Participant-1 26* Islam Male
Participant-2 24* Hinduism Female
Participant-3 26* Islam Female
Participant-4 22 Christianity Female
Participant-5 26* Hinduism Male
Participant-6 26* Islam Male
Participant-7 25 Islam Male
Participant-8 23 Hinduism Male
Participant-9 25* Islam Female
Participant-10 22 Christianity Male
Participant-11 29* Hinduism Female
Participant-12 24* Islam Male
Participant-13 24 Hinduism Female
Participant-14 24* Hinduism Female
Participant-15 27* Islam Female
Notes: *Participants had prior work experience
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market for
halal products
I often relate religion with Science. I try to find justifications for rituals in science to satisfy my
curiosity. It becomes difficult for us to accept any religious practices without identifying its practical
significance.
The idea very well fits into the views on religion and modernity by Bracke (2008). It is
important to understand the changing definition of the religion because it is one of the most
powerful social institutions as suggested by the many. Understanding religion is the
manifestation of self because it defines who we are and what we ought to be.
Participants were also found expressing difficulties in practicing certain rituals on account
of social barriers. For instance Participant 8 expressed, “We Pay efforts to learn more about the
religion. However, lack of certain resources and spare time hinders this learning process.”
He further supported his argument through the example of cloths: “What we used to wear
earlier is no longer preferred today. You have to develop harmony with time to gain more
acceptance from other.”
The authors noticed an unusual similarity in this theme. Though a majority of the
participants considered religion to be their philosophy, they all stated that they find religion
as a source of energy and peace. Participants expressed the desire for religion is more
convenient and which should pay due consideration for individual-specific variations. Here
variations have been defined by participants as circumstances, skills, social status, work
engagement and others. The above narratives explain the characteristics of postmodern
religion and the orientation toward it (Gellner, 2013). We can also relate these views to
Turner’s discussion on the science of religion (Turner, 2006). As the author said,
socialization is invariably the metamorphosis of religion. The definition of religion keeps on
transforming itself representing the transcendence of everyday world (Luckmann, 1967).
Defining halal
The concept of halal as conceptualized by the scholars was to have similar connotations in
the Indian context. We found some evidence recognizing halal products beyond the limits of
religious obligations. The authors observed an association between halal and individual’s
well-being. Halal products are the manifestation of our religion, which are legitimized by
their association with other healthy products. In this way, individuals can offer more
credibility and justification for their choice for halal products.
For example, one of the participants shared:
According to me, anything which is good for my body, my health should be considered as Halal.
Anything which is not good is haram. For example, raw meat (i.e., uncooked meat) is not good for
our health. Hence it is haram.
Two other participants expressed their inability to conceptualize the term “halal”.
When participants were asked to share experiences in which they witnessed confusion in
judging whether a product was halal, five of the participants expressed difficultyindoingso
for cigarettes and marijuana.Participants 5, 10 and 13 shared their experiences with Muslim
friends and revealed that their friends never abstained from eating or drinking anything and
hence they were not sure which products were to be recognized as halal. Participant 5 shared
that many of his Muslim friends drank alcohol, but there were a few Muslims who discouraged
its consumption. Therefore, it could fall under the haram category.
Purchase decisions and halal products
Participants expressed that they considered halal products while making any purchase
decisions. The general overview of halal products was that it is either they or their friends
who encouraged them to buy halal products. For example, Participant 8 said:
JIMA
I am not bothered whether the product is halal or not. But I have few friends who eat only halal
meat and also avoid food products such as liquor chocolates. So whenever I have to organize a
party for them, I prefer arranging and eating only halal products.
Out of the 15 participants, 11 expressed how convenience could play an important role in
their decisions to purchase halal products. For example, Participant 1 shared that he always
ate halal meats and never consumed alcohol, especially when he was at his native place.
However, in college, it was difficult for him to arrange halal meat products. Therefore, he
preferred eating whatever was available to him. Contrary to the general responses,
Participant 15 said she preferred traveling a little more to buy only halal products,
especially when it came to meats.
Halal certification and its effectiveness
When participants were asked whether they were aware of halal certification, four
participants shared that they had heard about the concept but were not sure what it was.
One of these participants said:
There was no KFC in my hometown. When I joined the B-School, I visited a local KFC outlet and
identified some Muslims were eating food there. Therefore, I started visiting KFC with the belief
that it must be serving halal meat. Recently, I came to know that they have some halal certificate
which is available on request. (Participant 9)
One participant expressed how this certification could be effective for both Muslims and
non-Muslims in making their purchasing decisions. He said, Often I find it very
embarrassing to ask for halal meat.”When further enquired, the participant shared that
people perceived his inquiry being more communal and weird. This caused a lot of
embarrassment before his friends and colleagues. Therefore, he abstained from asking for
halal foods when accompanied by others. He stated that the presence of a halal certificate
could save him from this embarrassment, as it would be easier to identify the quality of food
being served which could further influence his decision to eat or not.
Participant 2 said if such certification came with quality assurance, it would be helpful,
although she did not restrict her foods to only halal or jhatka. She further said that she came
across some cosmetics with halal tags during her visit to a European country. If such
processing were also used in personal care products, it would be interesting to use those
products and see how they were better than standard products, the participant opined.
Another participant stated that a certificate could address the trust issue. She explained
that when a Muslim visits a restaurant or a meat shop or a shopping mall, he or she tries to
identify the owner of the shop. If the owner of the establishment is a Muslim, they invariably
accept eating at that place. However, the presence of a non-Muslim owner may prevent a
majority of Muslims from visiting that establishment. In such cases, if the owner puts up a
halal certificate, it helps in building trust between the client and owner.
Halal as healthy and sustainable
Another theme that came out of our discussion with the participants was the sustainable
nature of halal products. Out of 15 participants, 8 were MBA participants who had attended
the course on suitability management and green products during their first year of the
program. One of the academic associates had done her MBA in HR and was equally familiar
with the concept. However, two more participants who had no prior training or experience of
sustainability management were equally aware of the concept and its scope. When
participants were asked whether they could relate halal products with sustainability
management, one of them said:
Untapped
market for
halal products
I have seen one of my Muslim friend using Halal nail polish and other cosmetics, and I used them
sometimes. They were as good as any other brands. I heard such products does not contains
alcohols and harmful chemical.
Another participant shared about his work on product safety duringhis summer internship.
He stated that sustainable products were safe for human and environment. Because halal
meats are clean and fresh, they are healthy. If the same is applied to another segment of
products, they may be called sustainable products. However, he expressed that he had not
come across or noticed any other product which he could share an example of.
Halal, shame and peer groups
Can food choices also become a matter of embarrassment for us? The authors found that
some of the participants faced difficulty in expressing their choice of food while they were in
a heterogeneous group comprising individuals from different faiths and beliefs. Given below
is a narrative to reflect the issue:
I felt embarrassed to ask the owner about the halal thing become whenever you go out with your
friends, you are closely watched, and they may ask you questions regarding your choices for
which you don’t have an answer. (participant-7)
It was observed that the individuals to look at questions on choice of food as undesirable. To
avoid such embarrassment, they either prevent such events from happening in the first
place or try to look for an available alternative. Historically, the concept of shame has been
associated with dirty work (Hughes, 1962; Rivera and Tracy, 2014). The concept of shame
has also been studied concerning social groups (Gilbert and Andrews, 1998). However,
studies on food and shame are scarce.
Discussion
The application of the halal concept is no longer limited to meat and processed food
products. Halal cosmetics, pharmaceuticals, living, supply chain and tourism are the new
forms of product and services which are increasingly creating their consumer base (Hanzaee
and Ramezani, 2011;Wilson et al., 2013). Halal products are an untapped market which can
become the next key marketplace for businesses. A report whichwas recently published had
estimated the global halal product industry to be worth US$6.4tn. Out of this, an estimated
US$26bn were found to be spent by Muslims on cosmetics alone (Global Islamic Economy,
2013; Halal Industry Development Corporation, 2018). India holds a promising ground for
such businesses to flourish. India is home to a culturallydiverse population having a unique
set of food choices (Eng and Bogaert, 2010). There is a shortage of studies on halal products
in the Indian context.
Interestingly, many popular brands have obtained halal certification for carrying out
business in India. These brands include big names such as BodyShop, Patanjali and
CavinKare. Due to lack of awareness and stereotypes associated with religious practices,
companies and individuals have not been able to promote halal certification and other
standardization practices aggressively. It is only the in recent years when a surge has been
observed in the demand and supply for halal certifications (Zannierah Syed Marzuki et al.,
2012;Aziz and Chok, 2013;Latif et al.,2014). Countries such as the UK, which have Muslims
falling under the in minorities, are setting a new trend by reflecting an overwhelming
response from multinational chains to servehalal products (Wilson and Liu, 2010;Lever and
Miele, 2012;Wilson et al., 2013). We believe that India too can experience such changes
shortly.
JIMA
Analysis of the cases and the interviews supports two significant findings. First, not all
individuals are aware of the concept of halal. It was observed that participants were relating
halal products more with Islam than as a processing technique. Further, responses from
some Muslim participants revealed that within the Indian Muslim population, not all are
seriously concerned about purchasing only halal products. Our study shows that subjective
norms are the core determinants of an individual’s choice for halal foods. More awareness
about halal products may reduce this tension (Khan and Azam, 2016). Another significant
finding was that countries such as Malaysia and Indonesia and have regulatory authorities
to certify halal products. Such organizations are controlled and regulated by the
government. However, in the case of India, there were no government authorities which
could restrict such practices. Any individual or an organization can issue a halal certificate
in India (Hanzaee and Ramezani, 2011). Such legal voids can have some long-term negative
implications especially when we are expecting this market to grow and expand further.
We also observed that the growth of halal product market is a result of not only its
consumption by the Muslim community but also access to information about the non-halal
ingredients, safety concerns and desire for a healthy lifestyle among non-Muslims.
Consumption of halal products and certification can also be explained through the approach
and avoidance concepts popular in the positive psychology literature. An individual’s
actions are primarily governed by their perception of the situation. Depending upon their
personality, individuals may or may not put an additional effort to perform a task such as
buying certain products. Further, social groups can also influence one’s behavior.
Individuals who show personality traits such as openness to experience are more likely to
try new products. However, individuals who get more affected by the social norms are
expected to avoid any major change in their behavior such as dietary or purchase behaviors
(Rook and Fisher, 1995;Smith et al., 2008). As a concluding remark, we would like to say
that halal products are no longer a mere representation of Islamic beliefs; they have become
a giant brand that has created a sub-area within the field of marketing. Our findings are
consistent with observations made in prior studies. These works have recognized halal as a
successful branding strategy for businesses today (Alserhan, 2010;Wilson and Liu, 2010).
Truly, it is the time when we should look beyond guanxi and mianzi because the market is
shifting its views again (Wilson, 2014).
Limitations and future research
There are certain limitations to our study which can be addressed by future research. We
did not conduct quantitative research in the form of a survey which could have helped us
analyze some more interesting variables. Further, our sample was limited to participants in
the age group of 21-30years. Older people could have a shared a different perspective on
halal products owing to their prior experiences and a higher degree of social interaction.
Further, our case studies were limited to certifying and cosmetics agencies. Future
studies can include halal cases on supply chain and halal tourism in India. Also, there is
scope for using a different business model to analyze these cases.
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Corresponding author
Yusuf Hassan can be contacted at: f17yusufh@iimidr.ac.in
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