INTERVIEW-Malaysian halal e-commerce site Aladdinstreet to spend $100 mln, onboard 60,000 merchants

Photo: Dr Sheikh Muszaphar Shukor, co-founder of halal e-commerce site Aladdinstreet, was Malaysia's first astronaut / Courtesy Aladdinstreet

Shariah-compliant e-commerce is the next big opportunity for global online retailers looking for new customers. Muslims around the world spent more than $101 billion on Internet shopping last year, according to data from the State of the Global Islamic Economy 2015/16 report.

While Malaysia-based business-to-business halal e-store Zilzar is often in the media, it will soon see competition from Aladdinstreet, the new kid on the block. Co-founded by Malaysia’s first astronaut, Dr Sheikh Muszaphar Shukor, the site is boldly claiming it will be the Shariah-compliant equivalent to Amazon or Alibaba.

“Aladdinstreet’s business model focuses on the halal market,” Shukor told Salaam Gateway. “But unlike others, our footprint is worldwide, with partner offices located in 30 countries at this moment, and more in the near future.”

ONE SMALL STEP FOR MUSLIMS

Shukor says the site will unpack its services and features in a series of phases.

In the first, Aladdinstreet is looking to onboard more than 60,000 reputable halal merchants from around the world. Currently, it is open to halal merchants on an invite-only basis. 

“Our key strategy in penetrating both the local and global halal markets is our focus on the premium segment of the market,” said Shukor. “Premium does not mean a high price or (that items are) expensive but instead high-quality products with good reputations.” He said all merchants accepted into Aladdinstreet’s exclusive marketplace would undergo a rigorous screening process.  

It is unclear how an e-commerce site with a seemingly high entry bar for merchants can reach the size and scale of Amazon or Alibaba, but Shukor seems to think it is possible. Aladdinstreet is a subsidiary of the Aladdin Group of Companies, a conglomerate with surprisingly little information online. What is clear, however, is that the e-marketplace is talking a lot about its money and resources. The company is also setting ambitious targets. 

$100 MILLION FOR NEXT THREE YEARS

“We have planned and allocated up to $100 million for global branding, advertising and promotion efforts for the next three years,” said Shukor. “We expect to achieve a target of 60 million visitors a month in the near future.”

The e-commerce portal, which aims to be fully operational in the coming weeks, will deal with pharmaceuticals, fashion, cosmetics, food and beverage, and financial products and services.

There are two versions of Aladdinstreet, Aladdinstreet.com for international buyers and sellers and Aladdinstreet.com.my for users in Malaysia. The former is not yet accessible to online shoppers but instead still inviting merchants to sign up.

Regardless, the site’s launch received a healthy dose of attention this month by local media in Malaysia. (At the time of writing, the Malaysian website was inaccessible due to a technical error.) 

ONE GIANT LEAP FOR E-COMMERCE

E-commerce spending by Muslims around the world is expected to reach $252 billion by 2020. The top countries by spending at present are Turkey ($8.1 billion), the United States ($7.5 billion), Malaysia ($6.5 billion), Egypt ($6.2 billion) and Indonesia ($4.7 billion).

As more Muslim business owners consider the option of selling online, more sites like Aladdinstreet are certain to crop up around the world. Business owners should take time to consider which channels make the most sense to reach their target buyers.      

Aladdinstreet hopes Shukor’s reputation can help the firm gain early traction. “Online business can be distant and impersonal,” said Shukor. “At Aladdinstreet, we want to give our partners, merchants and buyers a face that they can relate to and I am the face of Aladdinstreet – much like Steve Jobs is to Apple.”   

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