Rising global demand for halal products is a great opportunity for domestic industry players, including small and medium industries (SMIs), to reach wider markets. Moreover, the growing global Muslim population is also boosting market demand for Muslim fashion, food and beverages and halal cosmetics. Amid this growth in global halal consumption, the Ministry of Industry is increasingly pushing SMI players to innovate and keep seeking markets in various potential countries.
“As one of the countries with the largest Muslim populations in the world, we know how sharia economic values and halal products appeal to the market. However, we must not fixate only on the domestic market. SMIs must dare to leave their comfort zone and innovate to make products that are also popular in other potential markets,” the Director General of Small, Medium and Miscellaneous Industries (IKMA) at Kemenperin, Reni Yanita, said in a written statement in Jakarta on Wednesday (19/2).
Reni said the potential domestic and international market for Indonesian-made halal products is projected to grow along with global halal consumption. The State of the Global Islamic Economy
(SGIE) 2023–2024 report released by DinarStandard states that global halal consumption reached USD 2.29 trillion, supported by a global Muslim population of more than 2 billion.
The report also states that global Muslim spending in the halal sector is expected to reach USD 3.1 trillion in 2027, growing 4.8 percent over five years. “This is a great opportunity for domestic industry players. Moreover, the same report states that Indonesia's sharia economic ecosystem has risen to become the third strongest in the world, after Malaysia and Saudi Arabia, among the 81 countries assessed,” Reni said.
The Director General of IKMA added that the growth of the sharia economy is supported by various leading halal industry sectors, including modest fashion, halal food, pharmaceuticals, halal cosmetics, travel and sharia financial investment. In the modest fashion sector in particular, Reni is optimistic that SMI players can take advantage of this global trend to break into potential global markets, such as other large Muslim countries.
In 2022, global spending on Muslim clothing reached USD 318 billion, up 8.4 percent from USD 293 billion in 2021. SGIE predicts Muslim fashion spending will reach USD 428 billion in 2027, growing at a Compound Annual Growth Rate (CAGR) of 6.1 percent.
“The SGIE report also ranks Indonesia third in the modest fashion, assessment, after Turkey and Malaysia. Meanwhile, the countries with the largest Muslim fashion consumption are Iran, Turkey, Saudi Arabia, Pakistan and Egypt, which we can explore as export destinations,” Reni added.
Ditjen IKMA at Kemenperin therefore continues to push fashion SMI players to dare to expand their networks and increase their insight and capabilities, so they can contribute to promoting and marketing Indonesian Muslim fashion products in the world market.
Boosting sales during Ramadan
To strengthen the capabilities and knowledge of SMI players in the fashion sector so they can break into potential global markets, the Directorate General of Small, Medium and Miscellaneous Industries (Ditjen IKMA) successfully held a Webinar on Digital Marketing and SMI Business Management on Friday (14/2).
The Director of Chemical, Clothing and Craft SMIs, Budi Setiawan, said SMI players can immediately take advantage of Ramadan and Eid to boost sales and reach wider markets as a stepping stone for developing their business in the future. “This is the time when consumer spending rises; besides food, there are religious needs such as Muslim clothing and prayer items. People also tend to shop for their families, not just for themselves,” he said.
Covering strategies for building a fashion
brand from scratch to billions in turnover with self-funded capital and no loans, while making a social impact on the community, the webinar featured speakers from the SMI Bigissimo and academics from Prasetiya Mulya University.
Danny Aprilla Eka Rahmawati, owner of the fashion brand Bigissimo, one of the SMIs supported by Ditjen IKMA, stressed the importance for SMI players of continuing to innovate by spotting opportunities and market tastes, and building their own business uniqueness. Bigissimo is one of the brands offering Indonesia's first plus-size
fashion products.
“Fashion is a business anyone can do, which is why you must have your own uniqueness. SMIs must diligently research and explore product opportunities and potential target markets,” Danny said.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia