LOCAL BRANDING STRATEGIES IN SOUTHEAST ASIAN ISLAMIC CULTURES

Shakila Yacob,Rosilawati Zainol,Hanafi Hussin

doi:10.22452/jati.vol23no1.6

Abstract

In the beauty industry, local companies lose and the foreign companies win in nearly all places around the world. However, it is believed that in Islamic and traditional cultures, local companies have a competitive edge over foreign multinational companies, an edge that impacts consumer choices. What contributes to this edge combines the concepts of Warisan (traditional and cultural) and halal (an Islamic concept of purity and cleanliness) that are applied by local companies in Malaysia, Indonesia and Thailand to compete against multinational companies and win battles for profits. In the beauty industry, the literature lacks an explanation of why consumers choose certain beauty product brands and the reasons for their choices in Malaysia, Indonesia and Thailand. To understand the impacts on consumers’ choices between local and international brands and to evaluate the effectiveness of branding strategies in the beauty industry, a survey was conducted in Indonesia (Jakarta), Malaysia (Kuala Lumpur) and Thailand (Bangkok). In total, 361 questionnaire surveys were conducted with female respondents at various locations in the three countries. The study found that despite the fact that local companies leveraged their competitive advantages, beauty product users in Indonesia, Malaysia and Thailand preferred product qualities such as suitability, quality and indigenous ingredients to local or foreign brands. International brands had a significant impact on consumers in each of the three countries. However, global brands did not use a halal logo demonstrating that consumers preferred foreign over local brands despite the high level of awareness for halal products and ingredients (including indigenous herbs), that international brands did not offer. Indigenous branding strategies that emphasized halalness and indigenous knowledge of herbs were less impactful on brand choice. The quality, suitability, and ingredients took precedence over the halal factor.Keywords: Southeast Asian Islamic cultures, halal, indigenous knowledge, indigenous ingredients, tayyibah

Highlights

In response to globalization, various international companies shifted their approach from multi-domestic marketing to global marketing
The questionnaire survey tool was used to learn about female consumers’ choices in the industry including their reasons for choosing certain beauty brands and if they were influenced by the concepts of “halal-ness” and indigenous knowledge used by the local companies, or had other factors such as suitability and quality
The findings of the current survey take us into two different directions: First, the findings show that the religious concept of halalness does have a total impact on consumer selection of cosmetic products

Summary

Introduction

Various international companies shifted their approach from multi-domestic marketing to global marketing. Phenomenal changes emerged in branding strategies and more efforts were placed on creating international brands and giving up local brands (Schuiling & Kapferer, 2004). This shift revealed that international companies used local brands but gradually moved to single international brands and branding strategies. Siti is a local brand and maintains local identity It offers cosmetic, skin care and fragrance products. PAC provides a wide range of herbal and modern skin care, fragrance, hair care and body care products. Sari Ayu offers a wide range of beauty and skin care products made from local ingredients.

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