Introduction
The fashion business across the globe is constantly evolving, and the effects have been felt in all its industries, including the halal fashion industry. Today, there is a great need for the younger Muslim population to have fashionable yet modest wear, which has made it critical for business organizations to understand the Halal fashion industry more deeply. The word halal originates from an Arabic phrase and means permitted by the law.
The application of halal dressing laws is observable in many formal Islamic events. For clothing to be halal, it has to be manufactured with acceptable materials and be compatible with Islamic dressing standards. Many business organizations across the globe have been motivated by the projections that the global Halal market will reach 3.2 trillion by 2024, with fashion taking a modest share (Patrianti & Muksin, 2021; Pimada, 2021; Syamsiyah & Ardana, 2022). This study aims to explore the significance of the halal fashion industry and foster knowledge of Islamic fashion’s critical trends, perceptions, and implications.
Modest Islamic dressing is a must, and rules have been set to be followed by both men and women. Traditionally, Muslim men’s attire requires them to cover their heads, shoulders, and knees, while women should cover their bodies from the neck to the hair (Lodi, 2020). Some women prefer to cover their faces fully, although this is not quoted in the Quran (Hardivizon & Mufidah, 2021).
The ability for women to feel confident in their dressing is one of the main advantages of halal. Although the literature on the halal fashion industry is extensive, the profit potential that the Islamic community has makes it necessary to conduct more studies of the halal fashion industry and its implications. This knowledge forms the main objectives and research questions for this study, which are:
- Where does spending on fashion and clothing rank in the halal market share?
- What are the key emerging trends in the industry, especially among the young Muslim population?
- Which countries play the most significant roles in the halal market?
Literature Review
To examine the importance of the halal fashion industry and understand its key trends, people’s perceptions of it, and implications, this study will explore literature from seven studies. For instance, Faried et al. (2019) aimed to understand the potential of the halal fashion industry in Indonesia and the best methods for businesses to develop their businesses in the country. The methodology used in this study was a collection of data from prior studies, which was then analyzed with the help of the descriptive analysis method. The findings from the study showed that Indonesia has great potential for developing the halal fashion industry (Faried et al., 2019). This is evidenced by the great need for Muslim goods and services in the country, a demand that is yet to be fulfilled by the supply in Indonesia.
This study also found great diversity in the types of wear. The country’s population prefers diversity, which is caused by different demographics and other cultural influences. Other factors that the study found to shape the halal fashion industry in Indonesia included the legal framework, economics, key business players, and the export needs for the products out of Indonesia (Faried et al., 2019). The researchers concluded that there is a great demand for halal products in the country.
Business outlets need to be aware of how the fashion industry is becoming more diverse. Hassan et al. (2018) examined the need and importance of Islamic fashion in different parts of the globe, particularly Malaysia. The methodology used for this study was analyzing dissertations, theses, and literature on the topic and generating relevant insights from previous studies. The findings showed that international fashion businesses and local outlets influence the Muslim community’s dressing choices (Hassan et al., 2018). The reason for the influence was that these population segments, particularly the young Islamic women in Malaysia, are not just influenced by religious teachings but by a modest fashion inclination.
The researchers concluded that modest fashion dressing is gaining momentum and becoming diverse and inclusive. As the researchers hypothesize, the trend is caused by the increasing Muslim population and the need for modest fashion dressing by the youth with significant spending power (Hassan et al., 2018). The researchers recommend that business organizations be aware of the diversity and integration of cultures between the Muslim and non-Muslim communities when designing their goods and services.
The main aim of Zainudin et al. (2020) was to explain the correlation between brand loyalty and halal brand personality to provide better insights for marketing Islamic dressing concepts. The research collected data from 400 respondents who were subjected to descriptive survey sessions and interviews. The questionnaires were designed using the five-point Likert scale and were analyzed with the help of the SPSS software version 22.0.
The study results showed that three in every five respondents had a strong brand loyalty relationship with a halal brand personality. The rationale for brand loyalty in the respondents with halal personality and modesty was identified through descriptions and dimensions such as excitement, sophistication, and righteousness (Zainudin et al., 2020). The researchers concluded that it is essential for marketers to include the three dimensions in their branding strategies. This study was able to fulfill a knowledge gap in brand personality, particularly when it comes to millennials’ brand loyalty.
Organizations need to understand modesty, and the halal fashion industry business needs to know the perception of different parties when it comes to modest dressing. Fonseca and Mezabarba’s (2019) study aimed to understand the Islamic narrative of managing the appearance of the participants in special celebrations such as weddings in Brazil. Data were collected through personal interviews with Brazilian Islamic women living in the country or abroad. The period for the data collection was between 2017 and 2019, and most of the interviews were done in Rio de Janeiro on Fridays after the women had attended prayers or wedding ceremonies (Fonseca & Mezabarba, 2019).
The study’s findings showed patterns of modest authenticity in dressing integrated with the Brazilian culture, female beauty, and halal teachings. The study helped prove how modesty can be achieved in regions where the Islamic culture is absent and how people can be creative in such situations. The researchers recommended that further studies be done in regions where the halal fashion is absent and analyze how modesty is mobilized in those regions.
Understanding the literature on the effects of supply chain processes on purchasing halal products would help the stakeholders make good decisions. Sumarliah et al. (2021) aimed to foster knowledge of the halal fashion industry through the lens of supply chain processes. They sought to know if it could be correlated with the buyers’ decision. An online questionnaire was distributed to 374 participants, all Muslim retail customers.
The data collected was analyzed with the help of SmartPLS 3 software and PLS-SEM to test the implications of the variables. The study concluded that knowledge of supply chain processes is essential to the halal fashion industry as they impact customers’ intentions towards specific products and services. The study recommends that, since many customers have become savvy about the processes used in production, care should be taken to ensure they conform to Islamic customs and laws.
Businesses also need to understand the economic benefits of halal fashion, particularly in developed countries like Italy. The main objective of the Radwan et al. (2019) study was to find new economic opportunities presented by Muslim fashion consumers and to know the degree to which Sharia Law influences the dress code. Radwan et al. (2019) conducted a case study methodology from an Italian context. The findings showed a need for more industries for venturing into modest clothing manufacturing because of an increase in the country’s Muslim population and new interests by the general Italian population towards halal fashion dressing.
The findings also showed a gap in the Italian fashion companies to cover the increasing need for Islamic-centred dressing adequately. Radwan et al. (2019 also found that the modesty regulations contained in the Sharia Law influence the halal fashion industry to a large degree. The researchers recommended that Italian fashion companies leverage the country’s strong reputation in fashion to become a leader in manufacturing and designing modest clothes.
There is also a need for decision-makers to have insights from recent developments in the halal fashion industry and modesty. The purpose of Azam & Abdullah (2020) was to determine the contemporary state of the halal industry by observing the factors causing the increase in demand in the field. The study also sought to find out the opportunities from the recent global halal fashion industry expansion.
The methodology for this study entailed using secondary sources, where an extensive literature review, library and website search, and the review of online journals, theses, and dissertations were conducted. The results showed that the global halal industry is continuously increasing, with Islamic finance leading, followed by food and fashion (Azam & Abdullah, 2020). The researchers recommended that more governments ensure coordination and regulatory oversight to avoid unnecessary competition and duplication of halal fashion, food, and other products.
Research Methodology
The main goal of this study will be to identify the implications of modesty and halal fashion and their influences on crucial trends, perceptions, and impact on the Islamic fashion industry. This section will discuss the approaches, designs, and methods that have been used to collect and analyze data. The section is crucial as it will form a basis for the latter parts of the study, such as findings, discussion, recommendation, and conclusion.
Approach
This study will adopt a qualitative research design since the aim will be to understand the meaning of human experiences and behaviors in different social situations. Qualitative research seeks to understand complex phenomena by analyzing and exploring non-numerical data such as words and images (England, 2021; Nassaji, 2020). The qualitative research in this study will explore the emerging trends in the literature regarding modesty and the halal fashion industry. Different regions where the studies have been conducted will help reveal the diversity and commonalities of the Islamic communities in different parts of the world regarding fashion.
Design
The research design for this study will be a literature review conducted on eight scholarly articles. The articles studied and analyzed will include: (Faried et al., 2019; Hassan et al., 2018; Zainudin et al., 2020; Fonseca & Mezabarba., 2019; Sumarliah et al., 2021; Radwan et al., 2019; Azam & Abdullah, 2020). The papers selected shall have aspects of the importance of modest fashion, the halal fashion industry, and Islamic cultures, practices, and laws concerning dressing. The review shall prioritize these research papers’ methodologies, findings, discussions, and recommendations.
Methods
Data Collection
Data for this study shall be collected from the results and findings of seven previous studies, less than five years old, and thus published by 2018. The articles shall be systematically identified through keyword searches such as halal, modest fashion, Sharia law, Muslim fashion, and fashion diversity. Google Scholar academic database shall be the primary source for the articles, but other sources such as JSTOR and Scopus will be used when necessary. Other criteria that shall be considered before an article is selected will be: the article is published in English, the article is relevant to the topic under study, and the article is academic.
All articles used for data collection will be audited for authenticity. After collecting the data, the information will be organized and stored in an Excel spreadsheet. The key information in this spreadsheet shall be the data for the year of publication, the paper’s authors, its primary objective, the methodology used, findings and discussions, conclusions, and recommendations.
Data Analysis
After the data has been extracted, it shall be analyzed subjectively by an experienced analyst who will go through each of the studies and identify key trends and findings. The analysis will also involve collecting the data from the eight studies and conducting an analysis. The researchers will try to identify descriptive statistics such as the mean, mode, median, and range from the studies. The finding from the data will be recorded through charts and tables to provide ease for the readers.
Ethical Consideration
The data will be collected and analyzed ethically. Investigations will be done to identify if the studies used for the literature review conducted their primary or secondary research ethically. The study will also use publicly available studies and provide appropriate referencing and citations to avoid taking credit for work done by other researchers. The research shall also explicitly state where assumptions have been made in the methodology to prevent misleading the users of the study findings.
Limitations
This study has a few limitations to be considered when using its findings on the research topic. First, limited studies directly studied the topic “The substance of the modest and halal fashion industry in modern society.” Secondly, the research paper could only include relevant information to answer the research questions. Most of the studies focused on one particular region or topic, so the researcher had to fill in gaps when coming up with the results. These limitations must be considered when using this study as a source of literature for future research.
Findings
The findings from the study showed that the COVID-19 pandemic greatly impacted the global halal industry. Figure 1.1 below shows the negative impacts of the COVID-19 pandemic, according to the Global Islamic Report (2022). However, the shift of people to online shopping is reviving the industry. Figure 1.2 below shows how Muslims have been spending on food, beverage, and lifestyle in the past years, according to (Hassan et al., 2018). As of 2022, the total spending on food, beverages, and clothes will be 3000 USD, with a big chunk coming from clothing, as illustrated in Figure 1.3.
The Dubai Islamic Economy Department Centre (DIEDC) monitors the growth and development of Islamic spending in various aspects and regions. During the year ended 2017, it showed that the top ranking in modest fashion spending was UAE, Turkey, China, India, Italy, Sri Lanka, Bahrain, France, Singapore, and Togo in that order (Hassan et al., 2018). In the following year, 2018, data indicated several changes, with the top ten orders being UAE, Turkey, Italy, Singapore, France, China, Malaysia, India, Sri Lanka, and Morocco (Hassan et al., 2018). The Muslim consumer market is worth $ 27 billion, with the largest markets being Egypt, Turkey, Saudi Arabia, Iran, and India (Hidayat et al., 2021).
The halal fashion industry is present in all world regions and can be analyzed using the global comparative matrix, as shown in Figure 1.4 below. The nature of modest dressing is also diverse in different countries and regions (Salam, 2019). For instance, in Malaysia, in some states, women wore tight attire with no scarves; in others, women dressed more modestly and wore scarves (Hassan et al., 2018). The current fashion designs are led by local and international brands, with modern-age modest wear celebrating diversity.
Table 1.4: Global Comparative Matrix of the Halal Industry
The Muslim halal fashion industry is gaining popularity in regions outside the Westernized world. The leading countries outside the West are Nigeria, Malaysia, Indonesia, and Turkey, as shown in Figure 1.3 below. The main products that drive this income are accessories such as headwear, footwear, and apparel. In terms of market share, Islamic finance leads in the industry, followed closely by the food and then fashion industry, as shown in Figure 1.4 below.
Hassan et al. (2028) have also asserted that China is the biggest exporter of Islamic clothes, followed by Turkey and India. The cultures in these different regions analyzed have resulted in many attires considered Islamic non-conforming to Islamic law, such as not covering the face resulting in significant controversies. Nonetheless, they have presented an excellent opportunity for clothing business organizations to maximize revenues in challenging times.
The current state of the global halal fashion industry shows that it is on a positive trajectory. The apparel and footwear industry grew by 5.7% in 2021 to reach $295 billion and increased from USD$279 billion in 2020. The industry’s estimated 2.2$ trillion annual spending has made the industry gain some attention from the literature (Akram, 2022). Moreover, the fashion industry takes a significant share of the market. However, the halal industry still faces numerous challenges, such as shortages of raw materials in some regions, poor technologies in the central regions where the clothing’s manufactured, and capital challenges.
There is a need for a more modest clothing supply in developing countries. The disposable incomes in these regions have been constant, and people know different modest halal fashion products to buy. In Asian countries, Malaysia has been identified as the site of rapid expansion of the halal industry (Abdulla, 2020). Therefore, marketers have to target markets in Malaysia and Indonesia where the Muslim population is young and has increasing disposable incomes to boost their sales.
Discussion
The COVID-19 pandemic had a significant impact on the fashion industry, which made it necessary for the stakeholders in the field to try new industries. Research has shown that one of the promising industries is the modest halal fashion industry. A comparison of different geographical areas shows the halal industry profile today.
One of the leading gadget producers is the Asian region, which accounts for over 55% of global textiles produced annually (Nelson et al., 2020; Zhao et al., 2021). The global halal fashion industry is growing significantly in Asia, mainly due to Asia having the largest Muslim population in the world. The study has reviewed the situation of two articles that researched modest fashion in Indonesia and Malaysia. These studies found that the young populations with significant purchasing power in the two analyzed nations are shifting from traditional wear to more classy outfits.
Based on the literature analyzed, various findings were found concerning the issue of modesty and the halal fashion industry. All eight studies reveal that Muslims and non-Muslims prefer modest and halal dressing, with a massive group in both population segments revealing an interest in fashion. Faried et al. (2019) showed that Indonesia has a high potential and market for modest and halal fashion due to the increasing Muslim population in the country.
The findings of this study show that the diversity of the Muslim culture is spreading across the globe, which is supported by the findings of Fonseca Chagas & Mezabarba (2019) and Radwan et al. (2019). Faried et al. (2019) also found great diversity in the global halal fashion profile. The study mentioned that Indonesia is the fifth largest modest fashion producer, with other key players being Iran, Turkey, Saudi Arabia, and Pakistan (Faried et al., 2019). Through the lens of Indonesia, Faried et al. provided insight into how Islamic dressing cultures impact different regions of the globe.
Key trends were identified in the modest and halal fashion industry. Sumarliah et al. (2019) found a growing awareness among halal retail consumers of sustainability, and that many customers’ purchase decisions for modest Islamic wear could be influenced by their knowledge of the supply chain processes. The findings from the literature analysis also revealed that streetwear-inspired styles influence the types of wear that Muslims in different parts of the world prefer. Radwan et al. (2019) found that many business organizations are trying to find new business opportunities incorporating traditional and conservative Islamic fashion with new trends such as bold graphics and oversized silhouettes. Moreover, literature shows that organizations have incorporated innovative swimwear that ensures comfort and style while not unnecessarily revealing.
Literature shows that the Islamic fashion industry is becoming more diverse and inclusive. Hassan et al. (2020) prove this by asserting that international fashion businesses and local brands empower young Malaysian women by providing them with modest attire and celebrating fashion through innovative attire. The Muslim population is expected to grow in the years leading up to 2030, and this will present a huge potential for organizations that manufacture modest Islamic wear (Solomon & Tausch, 2019). Moreover, more potential for halal fashion wear continues among non-Muslim consumers, making the industry very lucrative.
The current state of the halal industry can be analyzed using the Swot and TOWS matrices. The company’s strengths are an increasing Muslim population, a high supply of fabric, many halal fashions of the brand, and changing mindsets among consumers. The weaknesses are that some modest Islamic fashion brands may not follow the Sharia laws, and the low awareness of the Muslim community of halal manufacturing brands. There are external opportunities for technological developments, diversity in halal product expansion, and acceptance of halal fashion dressing among non-Muslims. However, there has been a content threat that integrating modest wear with different cultures could erode Muslim values.
Recommendation
Businesses across the globe should invest in the halal fashion industry as it is a growing industry with limited barriers to entry. The high rate of growth in the Muslim community’s global population contributes to the growth. Potential for growth in the industry is also presented by the fact that non-Muslim consumers are now open to trying modest and halal fashion wear, thus giving the industry great potential. The most significant Islamic population is located in the Asian region. This region is also the biggest producer of textile products, making it imperative for business organizations to invest in this region.
Business organizations must be aware of Islamic cultures and laws when venturing into the industry under discussion. As more cultural aspects from diverse cultures are being implemented in the halal fashion industry, some aspects, such as laws covering the whole face, could be ignored. This can result in controversies and ethical issues that could result in consumers avoiding products of a particular organization. Obeying ethical considerations, such as ensuring sustainable supply chain strategies, could influence the purchase decisions of some customers (Cerchia & Piccolo, 2019).
The COVID-19 pandemic has reduced sales in the halal fashion industry (Jaiyeoba, 2021; Susilawati, 2020). It has also changed the preferred methods for shopping from traditional store visits to online shopping strategies. Therefore, organizations already in the industry and those wishing to try it for the first time should leverage e-commerce programs to boost their sales. The platforms should also be used to engage with different consumers, and after-purchase reviews must be sought to gauge the customer’s satisfaction in different aspects.
Conclusion
This paper conducted a literature review of seven previous articles dealing with modesty and the halal fashion industry. The industry has immense significance and is third in profitability in the halal industry after Islamic banking and the food industry. The studies reviewed show that fashion is widespread globally, with significant growth in Indonesia and Malaysia.
The studies also revealed that customers expect their fashion brands to be exciting, unique, and modest, thus conforming to the Sharia laws. Among the young Muslim community, this study found that modesty is not only the preferred aspect when choosing a fashion, but specific aesthetics have also been significant. Additionally, the studies uncovered that halal fashion is not sacred and is not limited to the Islamic community, but is a general fashion style that opens opportunities for export in countries that produce halal fashion brands.
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