Beyond digital marketing, such as curating cheery images for their Instagram account to attract the millennial crowd, local cafe Two Hana integrates technology into its operations by utilising self-order kiosks. (Photo: Zeng Shiya)
Cracking the Gen M code
A new generation of consumers is on the horizon. Muslim millennials are expected to spend over US$100 billion just on travel by 2026. To capture their attention, digitalisation is key — and there are multiple ways to go about it.
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By: Zeng Shiya
Exhausted after a flight from Singapore to Taipei, 23-year-old solo traveller Nazira Binte Mohamed Rasol dropped off her luggage at an Airbnb apartment and pulled up Have Halal, Will Travel’s website.
She was famished, but since a friend had recommended that she try Taiwan’s beef brisket noodles, Nazira took the time to search for restaurants that offered halal versions. Her online sleuthing led her to Muslim Beef Noodles Restaurant, within walking distance of Ximen station.
Similarly, 23-year-old Haiqal Zailani turned to Have Halal, Will Travel’s guides to prepare for his trips to Japan, Australia and Europe.
“I basically planned my itinerary based on the articles I read,” says Haiqal. For a trip last December, he sought recommendations for activities and halal food from an article titled “This 6D5N Osaka-Kyoto Itinerary Is All You Need To Conquer Japan”.
Like Have Halal, Will Travel, HalalTrip provides information on food, prayer spaces and Muslim-friendly accommodations. Both focus on millennial travellers such as Nazira and Haiqal. In fact, 80% of HalalTrip’s audience are Muslim millennials, said its marketing manager, Raudha Zaini.
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The next big spenders
These platforms have hit the bullseye at capturing a lucrative market segment.
According to the Muslim Millennial Travel (MMT) Report 2017 by Mastercard-HalalTrip, Muslim travellers are expected to spend 92.3% more on travel, from US$156 billion in 2016 to US$300 billion in 2026. Millennials will contribute one third of this expenditure, which comprises of flights, accommodations, meals and shopping.
Also referred to as Generation M or “Gen M”, Muslim millennials are a group of digital natives between the ages of 22 and 38.
The good news for local businesses is that according to the MMT report, Singapore is the sixth most popular destination for this group — close behind Muslim-majority countries like Malaysia and Indonesia, and ahead of larger countries like United Kingdom and the United States (US). This means that Singapore can expect more incoming Gen M tourists within the next decade.
With Gen M anticipated to spend over US$100 billion on travel by 2026, it is advantageous for local Muslim-friendly businesses to start targeting them as potential customers. Digitalisation is a crucial strategy to capture their attention since the MMT report describes Gen M to be “significantly influenced by digital media”.
Raudha adds: “Have some visibility online because that really is key if you want to appeal to this market.”
Besides increasing their online presence, businesses can also create mobile applications or replace manual labour with technology.
But “Muslim businesses are still a little behind the curve” as some owners do not leverage on technology, said Azrulnizam Shah Sohaimi, executive director of the Singapore Malay Chamber of Commerce and Industry. It provides support such as grants and partnerships for the local Malay/Muslim business community.
Azrulnizam has noticed that food and retail businesses tend to be more resistant to “riding the digital wave”. They rely mostly on storefront sales and thus may not see a need to digitalise, he added.
However, such businesses may lose out on potential revenue from Muslim millennials, who instinctively turn to online platforms for recommendations.
Meanwhile, establishments like Two Hana — a newly opened Korean-Western fusion cafe in Tampines — have successfully attracted millennial diners, who found them through websites like Have Halal, Will Travel.
The brand’s Assistant Marketing Manager Krisstle Ganison shares their strategy: “We invest a lot of time and effort in our digital platforms like Instagram and Facebook because these are where the younger crowd is”.
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Travel in the digital age
To effectively expand their consumer base, it is helpful for businesses to first understand the psyche and interests of Gen M travellers.
Key characteristics of Muslim millennial travellers, as adapted from the Mastercard-HalalTrip Muslim Millennial Travel Report 2017.
Gen M seeks 3As when overseas — authentic, affordable and accessible. As stated in the MMT report, this means trying authentic (albeit halal) local cuisine; finding affordable transport, accommodation and activities; and being connected online to find and share information.
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From booking flights online to choosing destinations based on reviews on information-sharing platforms, and sharing about their experiences — Gen M relies heavily on technology.
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That is why businesses need to go digital, said Raudha. Be it having a social media page or an online chat, the crux is to be prompt and present. Answer queries fast, and constantly find ways to engage the Gen M travellers through photos, videos, or “whatever appeals to them at that point”, she added.
Businesses with an online presence can also leverage on Gen M’s flair for sharing about their experiences as a form of word-of-mouth marketing. For instance, utilising user-generated content such as photos and positive reviews left by patrons.
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One example is HalalTrip’s strategy of
“Get inspired. Go. Inspire others.” Besides creating guides for Muslim travellers, it
also encourages members to guide one another through a timeline that resembles that of Facebook and Instagram.
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“You’re in a restaurant, you take a photo, you pin it and then you put in the location. So, it gets uploaded onto the HalalTrip platform. In the future, if someone in the area is looking for a nearby restaurant, the place that you pinned will pop up,” says Raudha.
Snap it, write it, pin it, post it; others will then get to see it. Here’s how HalalTrip’s timeline looks like when accessed via a web browser.
Influencing Gen M purchases
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Businesses can also employ “influencer partnerships”, she added. With the ubiquity of social media, engaging influencers popular among the Gen M audience can attract both global and local customers.
This is an “easy path to market your products”, said Amyrah Mustafa, co-founder of M.A.S.H Collection, a Singapore-based online store that sells Muslim-friendly beauty products such as halal cosmetics and nail polish. It partnered with Malay/Muslim Instagrammers to raise awareness during its inception in 2015.
Amyrah clarified that influencer marketing is straightforward and accessible. She approaches potential influencers by sending them a direct message on Instagram. If an influencer is interested in taking up the offer, they then continue the discussion over email for formality.
A post from popular influencers such as Sonia Asyira (@soniaasyira on Instagram), who has over 27,000 followers and whose posts can garner over 1,000 likes each, costs around US$44. In return, M.A.S.H Collection gained over 30 new followers by the next day.
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As the brand gained popularity, some influencers came forward to request for sponsorships. These are usually “micro-influencers” whose posts garner around 500 likes each. Those deemed as suitable ambassadors for the brand are then gifted with a few of their preferred products in exchange for an Instagram post. In such situations, it is fair to not offer monetary payment, said Amyrah.
“Those whom we engaged would be given more items and more shoutouts,” she adds, highlighting the difference between the two forms of influencer marketing.
“I wouldn’t want to collaborate with Kim Kardashian — the brand is just not aligned.”
— Selma Bamadhaj, co-founder of Lully Selb
While MUIS has no specific guidelines governing halal cosmetics, these are general conventions based on the halal standards of other countries.
Local fashion label Lully Selb also relied on influencer marketing when it launched. Its co-founder, Selma Bamadhaj says: “I started off my first year giving out our shawls to a lot of influencers just to put the brand out there.”
Since the brand specialises in non-conventional shawls with bold geometric designs or edgy hand-painted illustrations, customers may be apprehensive about trying it out. With that, hiring Malay/Muslim influencers was crucial as “it really helps when influencers wear our prints and show them how to style it,” said Selma.
But convenient as it may be, influencer collaboration is not thoughtless.
For instance, Selma says: “I wouldn’t want to collaborate with Kim Kardashian — the brand is just not aligned”. She added that brands should choose the right influencers who resonate with their products; simply having a large follower base is not a good metric.
Instead, Selma would rather earn more “quality followers” by engaging Malay/Muslim influencers such as Fizah Nizam (@fizzlep0p on Instagram), whom she likens to a “muse”. Fizah is a Singaporean with over 37,000 Instagram followers who posts candid photos of her family as well as stylised shots of her outfits.
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Digital marketing can also help Muslim-friendly brands to expand their local consumer base.
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For instance, M.A.S.H Collection has started partnering with Chinese and Indian influencers, which helped the brand gain more non-Muslim customers.
“I don’t want people to think this brand is only for Muslims or hijabi Muslims,” says Amyrah. Her goal in using influencer marketing is to induce a perspective shift, allowing customers to see that the products are also suitable for non-Muslims and vegans.
Alas, Amyrah and Selma caution that influencer marketing has its limits. Views and likes can create buzz but may not translate into sales, said Amyrah.
“Usually influencers will tag us on Instagram. But the sales channel is our website, so it’s a long route to push potential customers there,” she explains. Conversely, Instagram advertisements such as sponsored posts are faster at directing potential customers to their website.
Nonetheless, she still finds influencer marketing useful. “Influencers are a safety net to make our brand more credible,” she adds.
As for Lully Selb, influencer marketing has broadened their reach to a global scale, attracting customers from Turkey and the US.
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Taking digitalisation offline
Businesses can also digitalise in ways beyond online marketing. For instance, brick-and-mortar stores can utilise technology to streamline their operations.
Two Hana uses self-order kiosks to replace physical menus. This allows kitchen staff to receive orders faster and makes it more convenient for diners, who do not need to call for waiters to take their orders.
Some forms of digitalisation can also increase sales directly. For instance, food establishments can partner with food delivery services.
For Yazid Alwi, a hawker who runs All Bout Chicken, a halal Western food store in Chomp Chomp Food Center, sales “depend on delivery” through GrabFood, Foodpanda and Deliveroo. Customers have chosen to order from him despite having options from established brands such as KFC, Texas Chicken or Arnold’s.
These services make it easier for Muslim customers to place orders as they can narrow their options to halal food outlets nearby.
However, there is a catch. Food delivery services take approximately 33% from each transaction and this reduces his profit margins significantly.
But he admits that the services are still crucial for bringing in sales. On weekdays, his delivery orders are double that of dine-in orders.
Ultimately, there are still details to be worked out as not all forms of digitalisation can immediately increase profits.
Yet, with Gen M set to be the next key consumer market, it is imperative for Muslim-friendly businesses to ride the digital wave and reach out to them — both travellers and locals alike.