Foreign exporters should do the methods that Viettonkin Consulting can suggest to penetrate the Halal Market in Indonesia. The market potential has reached billions in the past few years, and the numbers continue to grow.
As one of the leading countries with the largest Muslim community, Indonesia holds a large market with halal requirements. Unfortunately, the recent growth in the Halal market also opens the chance for many fraudsters to put their fingers in the pie.
Viettonkin Consulting has the modules that foreign exporters can employ to penetrate the halal market in Indonesia and take anti-fraud measures. These modules will comply with the regional laws and still provide the best methods for foreign exporters to penetrate the Indonesian market.
The current estimate for the halal product market ranges in trillions of US Dollars. In 2021, the global halal food market’s value is US$ 1.978 billion. Analysts expect the market to grow by about 10% in the next five years. And halal food is only second in revenue in the global halal market.
Foreign exporters who want to penetrate the Indonesiana halal market have to employ the right strategy to gain precise calculations and start their success story.
Market Penetration Services by Viettonkin Consulting
Market penetration requires several techniques and Viettonkin Consulting is capable of providing the necessary services. The company offers various services to support the exporters in market exploration.
Viettonkin Consulting provides a machine learning module for exporters to analyze the market and provide the necessary data through social media activity and trends. The company also offers a thorough analysis of IP and email to protect exporters from any duplicity issues in the future. Exporters can use the tailored service to calculate the risk and choose the best strategy to penetrate the Indonesian halal market.
The foreign exporter also can employ Viettonkin Consulting to do a data analysis to find their market segments before they strategize the marketing effort. They also can use the Shopify integration that Viettonkin Consulting offers to their advantage.
Viettonkin Consulting assures exporters won’t have any problems with collecting and integrating the data. Their service includes an easy-to-use and optimized UX with complete features for the clients.
Halal Market in Indonesia potential and challenges
The definition of halal refers to the Muslim practice of what they can take. Halal itself means “permissible” in Arabic. A product has to undergo a specific set of tests to ensure that it complies with the shariah rule then it will have the halal label. In Indonesia, the food, drug, and cosmetic study for the Indonesian Ulema Council (LPOM MUI) is a separate division specific to overseeing the halal process implementation before granting the certificate. Any business endeavor needs to submit an application and provide the necessary documents and be ready for a visit from the study to ensure the process is halal.
The majority of Indonesia’s population is Muslim and the halal lifestyle is part of their daily life. In recent years, Indonesia has pushed for more halal options by merging three of the state-owned Shariah bank into one in the effort to promote halal endeavors.
The Indonesian government also provides easier access to halal products and certification. And they also promote halal destinations. But most of the market players are still unaware of the potential. Thus creating the niche that exporters can exploit.
The halal market covers many variants of products spanning from household items such as dishwashing liquid to cosmetics and financing services such as peer-to-peer lending. The variety should give the exporters a better idea of what products to bring into the country.
The global halal market reaches billions of dollars, and Indonesia is one of the top ten countries providing halal products and services. However, the country is not the top provider of any of the halal market aspects.
The development of the Indonesian halal market is still surprisingly low. Middle eastern countries such as UAE, Jordan, Oman, and Qatar are still leading in various halal market sectors. Indonesia’s halal market growth is only second in the fashion model, and not even part of the global top ten for the halal food market.
One of the most apparent issues is the number of Micro, Small, and Medium Enterprises or MSMEs that have already obtained the halal certificate from LPOM MUI is still low. Indonesian Muslims practice the halal lifestyle yet are unaware of the necessary halal certification in the products. The lack of communication and cooperation from companies in the same industry is recurrent in micro-enterprises.
Many countries use the Indonesian halal certification as their reference label. LPOM MUI has issued at least 600 halal certificates for countries with abroad production. However, there is still no uniformity or standardization on halal certification issuance.
Another challenge lies in how the General population in Indonesia perceives and receives foreign products are yet to have halal certification. And since they have a very active online lifestyle, thorough research on their preferences is due.
The large population alone is not enough to increase the transaction volume in the Indonesian halal market. The Indonesian halal market needs an external force as the catalyst to increase the transaction volume and give an exponential boost to the global halal market.
What the foreign exporters can do
The most important thing is obtaining the halal certificate for the products. The halal label acts as the prominent pass for all products. It’s a small stamp that shows the product complies with the shariah law and is safe to consume.
Foreign exporters also need to comply with Indonesian law in general. And they also need to well-researched the market to know what the Indonesian market demands for the time being and near future. The halal market comprises various components and exporters have the privilege of choosing which products they want to focus on.
As one of the major forces in the South East Asia region, the Indonesian halal market can set the trend for the whole region. Therefore, successful market penetration is of the utmost importance for the exporters to set a name on their companies.
Some market penetration methods that exporters can apply are aggressive advertising by constantly introducing new and unique products to fit the halal market demands. But this may yield to another issue as they risk oversaturating the market.
Running a co-marketing campaign by having a working relationship with a local company is also one thing that they can do. This strategy will put the exporter’s name out without having too much effort.
Whether it’s the first attempt to introduce a product or service or to cement their status in Indonesia’s halal market. The exporters need to have accountable and scalable data that fits their needs.
How Viettonkin Consulting takes part in the matter
As a company with a heavy emphasis on providing an anti-fraud service, Viettonkin Consulting can be a third party to provide the much-needed layer between the foreign exporters with the Indonesian halal market.
Exporters can rely on Viettonkin Consulting to provide AI to help them analyze the Indonesian halal market. They can triumph in their market penetration effort by having meticulous data research with complete accountability. Viettonkin Consulting provides the precise calculation to manage the risk. They do in-depth checks that they tailor to fit the exporters’ needs. The personalized data research will help the foreign exporters identify what they need and which strategy to employ.
They also can prevent oversaturating the market. Viettonkin Consulting do a thorough data analysis that will help the foreign exporters segment their target and optimize their market penetration efforts. They can avoid redundancy and can supply the market demands at ease.
Exporters also won’t have any difficulties integrating the data from Viettonkin Consulting with their platform. The optimized UX ensures a seamless integration. Viettonkin Consulting assures that the exporter won’t have any problem calling the API to gather the data.
As further proof that Viettonkin Consulting is ready to partner with foreign exporters to penetrate the Indonesian halal market, Viettonkin Consulting already has an office in Jakarta, Indonesia. They can provide near real-time data analysis and updates. The modules they provide will help exporters on taking the right measurements to avoid fraudulent activities. Exporters can employ the IP and Email modules as part of the background check process for their future partners.
The global halal market sees a continuous surge in demand. And the market is still far from reaching its peak, with the growth estimated at 10% within five years. Indonesia is one of the countries with the largest Muslim population that must answer to the needs. Foreign exporters can penetrate the market when they bring the right product that complies with the local law.
Exporters need to understand the market through extensive data research. A meticulous analysis of products in the halal market will provide exporters with all of the advantages they need. Viettonkin Consulting can suggest some of their services help the foreign exporters find their niche and segment to ensure marketing success. Exporters won’t have any difficulties integrating the modules from Viettonkin Consulting to their benefit when building marketing strategies.