JEDDAH – In stark contrast to the pressures the mainstream fashion industry faces in the aftermath of the global recession, the modest fashion space continues to expand, the 2015-2016 edition of the ‘State of the Global Islamic Economy' report released on Monday said. The report is a partnership between Dubai Islamic Economy Development Centre (DIEDC) and Thomson Reuters, the world's leading provider of intelligent information for businesses and professionals, and in collaboration with DinarStandard, the growth strategy research and advisory firm. It was released ahead of the Global Islamic Economy Summit that will run in Dubai from 5-6 October, 2015. Muslim fashion e-commerce platforms such as Hijup and Modanisa are receiving further investments to grow their user base, while mainstream fashion players such as Uniqlo, Mango and Tommy Hilfiger are following the lead of haute couture houses such as DKNY in tapping into the modest fashion market. Developing branded global concepts: with a $200+ billion consumer market, it is surprising that no focused global fashion brand based on modest clothing exists today. There is an opportunity for developing global brands with Islam-inspired modesty and a global appeal. Clothing production is a major industry for many of the OIC countries (Bangladesh, Turkey, Indonesia, Morocco, and Pakistan). Manufacturers who are producing clothing for global brands from the OIC countries already have the infrastructure to engage this market segment in a much more focused way. Specifically, e-commerce clothing sales grew 25.4% in 2013 relative to its total sales growth worldwide of 5.8%. Based on DinarStandard analysis, out of the $224 billion 22 Muslim clothing consumer market, e-commerce clothing & accessories purchases by Muslim consumers are estimated at $4.8 billion globally in 2013. The largest Muslim clothing e-commerce markets as of 2013 are Turkey ($474 million), USA ($442 million), UAE ($428 mill), Saudi Arabia ($366 million), Germany ($291 million), UK ($239 million), France ($211 million), Iran ($191 million), Egypt ($164 million) and Morocco ($133 million). This reflects the current Internet and e-commerce penetration of these markets and Muslim population clothing spending. However, challenges abound too. One of the constant challenges faced by small and medium enterprises in this space is how to balance quality and efficiency while at the same time following the fast-changing trend and growing the business. Financing to scale becomes a key hindrance such that effective R&D and operation adoption is able to sustain continued growth. A few years ago, the fashion industry catering to the $224 billion18 Muslim clothing consumer market started out its online presence as a niche market dominated by a few e-commerce sites selling predominantly ethnic clothing like traditional abayas and shalwar-khameez from Islamic countries. Today, fast-growing global clothing e-commerce focused on the Muslim consumers is estimated at $ 4.7 billion in 2013 by DinarStandard. While this represents a small percentage of the total clothing retail segment, it is the fastest growing channel. E-commerce apparel sales grew 25.4% in 2013 relative to its total sales growth worldwide of 5.8%. The increasing simplicity of setting up a virtual store and social-media marketing has enabled many entrepreneurs in this field to extend sales beyond their national or regional boundaries. E-commerce is driving Muslim fashion creative space where fashion designers, entrepreneurs, event organizers, photographers and business professionals are increasing cross-border homogeneity and purchasing of Muslim fashion. Muslim consumers in high-income western-markets are major target markets led by ‘Hijab' (head-covering) fashion category for women. Among existing major categories of fashion e-commerce sites, ‘Hijab and related Women Fashion19' e-commerce sites by far is the leading category. In fact the term ‘Hijab' is now a more popular search term on Google than ‘Halal.' In a relative search term strength comparison as of May 2014,‘Hijab' was at 69, ‘Halal' at 53 and ‘Jilbab'20 at 50. Moreover, as mainstream labels are recognizing the potentials of this space, Muslim-owned brands will face increasing competition from more established players with more capital and experience in the fashion industry. Besides, many Muslim fashion start-ups are suffering to scale given limited Shariah-compliant small business financing options. In addition, the entrepreneurs lack a platform and support to develop the skills to attract and engage with investors. Furthermore, one concern by many in the Islamic clothing and fashion industry is lack of integrity in adhering to the ideals and spirit of modest fashion based on Islamic principles. While various interpretations of modesty exist across the Muslim world, certain practices are seen to contradict the spirit of modest fashion. This can affect the credibility of this sector. It is similar to the Islamic Finance sector. Driven by the tremendous interest in modest clothing, Islamic fashion shows are proliferating all over the globe. In South East Asia, for example, Indonesia Islamic Fashion Fair and Malaysia's Islamic Fashion Festival are held on a national scale every year. Modest fashion events are also seen in countries where Muslims are a significant minority such as in USA and UK, albeit on a smaller scale. On the other hand, the abrupt cancellation of an Islamic fashion event early this year in Philadelphia, USA6 also highlights an emerging need for modest/Islamic fashion industry association to issue guidelines and regulations for industry players. The emergence of modest fashion photography and modeling agencies: In 2014, American photographer Langston Hues published a book on street style modest fashion, highlighting one of the main sources of inspiration for designers in this space. Muslimah beauty pageants and modeling agencies are also mushrooming. This phenomenon not only underlines the growing demand for Muslimah-friendly photography and modeling services, but also creates discussions and debates around modesty and the role of Muslim women in the fashion industry. • Non-Muslim designers and labels are entering the space: The high demand for Muslim wear has attracted non-Muslim designers to create select collections for their faithful customers. As digital platforms are making the exchange of inspirations and ideas easier than ever, cross pollination of ideas and collaboration among creative entrepreneurs is going to continue to rise. The trend in Islamic fashion is often influenced or determined by a Muslim personality or public figure who gets a lot of attention in the media or social media .— SG
