CHAPTER 2 LITERATURE REVIEW 2.

0 Introduction This chapter elaborated the Islamic Fashion industry and also examined the previous literature on the Islamic fashion, marketing mix strategies, issues and challenges that used in this study. 2.1 Halal Market and Fashion Products Position Halal in an Arabic word meaning permissible in Islam, and the Halal market, i.e products that are Shariah-compliant represents a significant portion of Islamic countries economies (Kambiz & Shahrzad, 2011). Todays, Muslim consumers are much more concern on consumer segments, demanding healthy and quality products related to Shariah requirement. On the other hand, applying approaches that are suitable for secular market to Islamic market bring out some risks if they were not align with Islamic beliefs (Morphitou.R & Gibbs.P, 2008). Halal industry can categorize to three main: food, lifestyle and services. Islamic fashion is one of the Halal lifestyle areas and also can include to other subjects such as beauty, jewelry and luxury goods, automotive, interiors and cultural products. 2.2 Fashion Marketing The beginning of fashion design can be mentioned on nineteenth century. Fashion marketing is making and selling of apparels and accessories that are desirable to the customers. Fashion industry is a big industry, but at the end of the day its all about marketing the greatest of design in the right way (Retrieved from: http://www.tumblr.com/tagged/fashion). Fashion is not just about cloth, its about all other products such as jewelries, apparel, footwear and others. Fashion marketing is a way of application in the business cloth industry which focuses on target consumers of clothing and related product and services. Furthermore, it

is the combination of elements in advertising, design and business administration as well as parallel with the fashion world in order to take new clothing line and attention to be successful. Increasing demand for product variety in combination with market-oriented view, forces companies to face with different market demands at the same time (Heikkila, 2002; Holmstromet al., 2000; Lee, 2002) In fashion marketing it can be summarized in five processes such as fashion marketing search, fashion product management, fashion promotion, fashion distribution, fashion product positioning and price. Therefore, the fashion marketers has to determine and motivation the consumer about fashionable. According to Bohdanowiz, J&Clamp, L (1994), there are several factors that should be considered: age / generation, gender, occupation, economic circumstance, social class and religion. Nowadays, Muslim citizen more concern about the Shariah requirement in their life. Therefore, this study is focused on Islamic fashion in the fashion industry based on Islamic law and requirement and creates a special target for fashion marketer and aware of Islamic marketing issues. 2.2 Islamic Marketing In purchasing power of Muslim, religion plays important role in purchasing decision of people, within that the Islamic perspectives should be added to marketing issues in order to attract Muslim. Islamic marketing can be defined as applying all the marketing rules that are not against Islamic rules and holly Quran. Arham, M. (2010), At the heart of Islamic marketing is the principle of value maximization based on equity and justice for the wider welfare of society. In Islamic marketing, there are four characteristics for example spiritualistic, ethical, realistic and humanistic (Sula and Kartajaya, 2006). 2.3 Customer Purchase Decision For customer purchase decision, individual variables and construct can be divided into demographic and lifestyle variables and personal religious construct. It can be studied to

recognize different generations, classes of society and orders of religiosity among Muslim wome that will explain their fashion-buying decision. 2.3.1 a. Demographic Variables Age Most of young women in the world, like eye-catching models in their dress. Their purchase decision behavior prefers to bright colors, modern patterns and cuts, and more fitted dress. Their certainly do not want to purchase plain and simple clothes. For that reason, they need to face the challenges occur between their desire and existing hijab policies. The winner will be marketer who can create a fashion approach complying with both legal and societal factors and meeting the desires of the young generation (Kambiz & Shahrzad, 2011). b. Education Level Nowadays, womens education levels are rising at a much faster compare to mens. Changes towards globalization, well-educated female population rapidly growth and expansion and their awareness on global society makes them more dress and fashion conscious. According to Kambiz & Shahrzad (2011), they want a veiling fashion satisfying their subjectivity and presenting their position as urban, educated and tasteful women who are Muslim and modern. c. Employment and Income In recent year, is very noticeable the increasing employment among women as changing on their education background. Most of the women in the world are attempting to attain a more equal share in high-ranking official positions of the executive or top management levels. Therefore, they are not only seeking on fashionable demonstrating on their job position but also willing to pay high prices on their clothes. Generally, womens nowadays are able and willing to spend their income for their own appearance.

2.3.2

An Important Lifestyle Islamic teaching greatly emphasizes the importance of education and encourages

womens participation in all public spheres (Hamdan, 2006). Womens be more intellectuals and social activists have raised the standard living and thinking. Moreover, they are most sophisticated buyer group and believe that men and women have the same and equal social, religious and moral duties and responsibilities. Besides that, they more concern on their femininity and respect their womanhood. They also have differentiated on their own ideas and attempt to reproduce a new and modern reading of Islam. In spite of that, they want a fashion style will reflecting their intellectuality, equal position with men, look femininity and great ambitions. 2.3.3 Personal Religious Construct To understanding the influence of religion on human behavior is complicated. According to Muhammad and Mizerski (2010), based on religious psychology literature and marketing studies, the influence of religion on consumer behavior is found to be mediated through five sectors. These factors can determines as individuals religious affiliation, commitment to religious beliefs and practices, the extent on religious knowledge on views and perceptions on societal issues and motivation in following his or her religion. Other factors such as culture, ethnicity or lifestyle could have contributed to the differences between consumers from different religious affiliation. Moreover, consumers commitment in performing religious activities, rather than their beliefs in religious doctrines, has an effect in their responses in regards to their behavior in the market place. Religious orientation and motivation appears to be the most credible factors in describing religious influences on womens fashion-buying behavior in marketplace.

2.4

Marketing Mix Strategies for Customers Globally, population of Muslim consists one fifth of world population. Most of the goods

and services are consumed by them provide vital information for any international corporation especially in global competitive market. In addition, most of the Muslim countries have been embarking their administration and policy on Islamization programme such as Malaysia, Pakistan, Egypt and others. No doubt, there are too many multi-national corporation entertain the Islamic production and services to meet the demand of Muslim consumer behavior. Thus, it is increasingly crucial for these multi-national corporations to create Halal division and have a strict discipline to be audit their product which can be accepted in those Muslim countries. Due to the competitive advantage, the multi-national corporation would certainly increase the sales and profit margin of their products even though they have implementing Islamic marketing mix. Kotler & Armstrong (2006) explained an effective marketing program blends all of the marketing mix elements into marketing program designed to achieve the companys marketing objectives by delivering value to customers. 2.4.1 Product According to Shuhaimi and Osman (2012), Islam is a way of life and it is a comprehensive way in which the believers accept God as the Creator and obey Him as the mode of his life; a believer must seek His pleasure in all his actions in this world. Production in Islam merely takes into teaching of revelation and harmful products on goods and services are forbidden in Islam. Therefore, the production decision making process is guided by the principles of lawfulness, purity, existence, deliverability, and precise determination. In Islam perspective, opined that goods and services must be produced for the welfare and justice of all mankind and not for exploitation. These principles indicate that products must be (Samir, 2012): 1. Lawful do not cause Dullness of mind in any form, lead to public nuisance, or immorality. 2. Product must be in the actual possession of the owner. 3. Product must be deliverable since the sale of the product not valid if it cannot be delivered as for example the sale of fish in the river.

4. The article for sale must specify exactly the quantity and quality (Al-Ukhuwa, 1983). However, as with the definition of Halal, interpretations vary. Some products deemed acceptable in Malaysia and are barred in countries like Saudi Arabia like Barbie dole without headscarf and night clubs. Some products attract local taxes in Islamic countries, but some do not. It is worth noting that interpretations of what constitutes Halal vary. For meat product, for example, some Muslims will eat anything except pork meat like eating MacDonalds hamburger, while others only eat meat that is certified halal, for animals that are not stunned, have been treated humanely, and were fed on natural ingredients Halal and organic food. Islamic principles dictate that the production operations must be innocent and pure from beginning to end (Al-Faruki, 1992). In addition, Islam have linen that product must not cause any harm or dullness to the mind, must be asset backed and deliverable, also must identify extra-cost added features that might materially change the product or service on the buyers decision making. All obligations should be discharges in good faith and should be based on principle of justice, fairness and equity. Moreover, there should be no place for product obsolescence, nor weak packaging or inaccurate labeling. The Quran states: O ye people eat of what is on earth, lawful and good; and do not follow the footsteps of the evil one, for he is to you an avowed enemy (Quran, 2:168). Islamic ethics imply that accurate product information should be provided not only when a good is sold but also in marketing literature and in advertising (Wilson, 2006). Packaging must comply with Islamic Shariah (Samir, 2012). It is as encourage a social and welfare approach rather than decision based on the profit maximization. 2.4.2 Price In the marketing mix elements, the price element is the most flexible. Based on Islamic perspective, taking into taking into account buyers' concerns is not less important than taking into account sellers' concerns. According to Samir (2012), in Islam Allah is the Pricer. Prophet

Mohammad (PBUH) said in Hadith Allah is the Pricer; Allah provides the wealth and withholds it, and I hope to meet Allah when there are no complaints that I have been unjust to money or blood. Today, it can be seen that many business persons are business profit oriented; governors within the Islamic environment must intervene to safeguard the interest of citizens. Thus, taking into account that some customers are price ignorant and can be ripped off by marketers; therefore, intervention is needed. Pricing policies should be free from predatory pricing and changes in price should be consistent with changes in quantity or quality of product (Samir, 2012). There is prohibits false propaganda or publicity with regard to price, demand and supply in Islam. Nevertheless, price controls and manipulations to meet market needs, Islam does not prohibit. Objectives of trading in Islam is welfare which the price, especially of the essential goods, food and drinks, clothing and housing determines a just distribution for all the people. According to Shuhaimi and Osman (2012), manipulating prices and hoarding to create a high price are not in line with Islam. Hoarding to make huge profit is not allowed, especially for essential food: No one withholds goods till their prices rises but a sinner (Abu Dawud, Hadith No: 3440, 980). Besides that, Islam also addresses the issue of monopoly and predatory pricing (dumping), whereas the monopoly is the sole controller of market. Therefore, is not allowed as the monopolist can fix any price that he likes and the objective of making sole profit by a monopolist is totally against Islam (Al-Buraey, 1983). Similarly, the dumping of goods at a very low price or predatory price (Schlegelmilch, 1998) to wipe out the competitors are not permitted in Islam. Moreover, speculating to push up the price of certain things is forbidden too. Other common mistakes are when the marketer tries to overprice his products by increasing the prices. All these are unethical ways in marketing rejected by Islam.

2.4.3

Promotion In terms of promotion, there are lot of strategies that will implement by the retailer and

international companies in targeting their sales. One of the common strategies that will be used is advertising. Kotler (2008) defines advertising as any paid form of non-personal presentation and promotion of ideas or goods or services by an identified corporation or body. Advertising objectives are to inform, persuade, remind, or reinforce. Samir (2012) defines marketing communication about goods and services are not intentionally deceptive or misleading. By that, in Islam, sellers and buyers are accountable to Allah and both should be honest and fair in their marketing activities. In the promotion of products, there should be no room to cover up promotional behavior or hide any defect in the products. Wrong give impression of any kind of promotion the product is prohibited in Islam. It is considered unethical for all claims that have elements of coercion. Giving to false and misleading advertising as well as deceptive and manipulative promotion must be avoided. Notwithstanding, true documents that reveal accurate specifications as well as terms of quantity and quality should be revealed. Furthermore, Islamic ethics prohibits stereotyping of women in advertising, excessive use of fantasy, the use of suggestive language and behavior, and the use of women as objects to lure and attract customers (Erffmeyer et al. 1993; Beekun, 1981; Razzouk, 1993). Islamic branding is not a brand of well-known goods from Islamic countries (Shuhaimi and Osman, 2012). It refers to any brand that seeks to address the needs of Muslim markets, regardless of whether the markets are from Muslim majority nations or Muslim minority nations, also whether the owners of the company are Muslims or not (Temporal, 2001). Undoubtedly, there will be views that it is not good to mix the brand of goods with religion. From the marketing perspective it would be good to know the customers and to provide the goods that they really want. This branding is also not Islamic evangelism but merely selling a good with a brand. It is also to know the cultures and wants of groups of people bound together by common values

and practices. Islamic branding and marketing are just means to create the goods wanted by Muslims as consumers (Temporal, 2001). 2.4.4 Place Shuhaimi and Osman (2012), defines that the marketing process of distribution from the producer to the consumer must be ethical. The people, equipment, and organization of a business entity with various process starting with providing for customers to place their order and ending with them getting the goods must be transparent and satisfactory to the customers. If transport is used to deliver the goods, then environmental impact must be taken into consideration (Bovee & Thill, 1992). According to Islam, distribution channels must add value to its goods, not make it a burden for the buyers (Diya al-Din, 1983). The distribution from place to place should not cause harm to others but increase value of its product. Islam does not prohibit agencies and channels representation as a go between to facilitate the movement and acquisition function (Samir, 2012). Distributors should not use coercion; they also should not create a burden for the final customers in terms of higher prices and delay (AlUkhuwa, 1938). Unnecessary delay is not permissible. Facilitation of goods delivery and acquisition of products by agencies is not prohibited in Islam. Finally, it should be emphasized that the final aim of distribution in Islam is to create value and to provide ethically satisfactory products and services. Within the Islamic ethical framework, however, the main aim of distribution channels should be to create value and uplift the standards of living by providing ethically satisfying products and services (Saeed and others, 2001).

Table (1): Islamic Marketing Mix.

Marketing Mix Shariah compliance Should not use the name of Allah in branding and labeling Product Halal(pure and lawful) Accurate labeling No weak packaging Safety no harm Fear God in pricing(God is pricer) Fair Price Societal welfare approach Profit maximization not priority No cheating No harm to people on roads No Unnecessary delay Place No coercion Market No dullness of mind No product obsolescence Value durability Environmental impact No laissez faire Deliverable No unjustified price No manipulation No predatory pricing No hording No switch and bait pricing Channel create no burden on customer Closure during Friday midday prayer Avoid suspicious places Shariah compliance Women should not be used to attract or lure customers No use of suggestive language and Promotion behavior No use of women in advertising No concealment of fact and information No manipulative promotional behavior
Source: Dr. Samir A. Abuznaid, Associate Professor of Marketing and Management, Hebron University, West Bank, Palestin

No sexual appeal No swearing in the name of Allah No exaggeration of attributes No false assertions No misleading advertising No deception No obscene advertising Disclosure of faults and

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