[Singapore/Shenzhen – 19 March 2019] Crescent Node Pte Ltd (HalalNode), which operates global halal B2B ecommerce platform HalalNode, has signed an MOU with Choice International Forwarding Co. Ltd (Choice) to jointly develop the halal trade in the Middle East and Africa.
Halal Market Overview
According to the Global Islamic Economy Report published by Thomson Reuters in 2016, there are 1.8 billion Muslims in the world today, accounting for 25% of the global population. The population is expected to grow to 35% of the global population.
In Africa, about 50% of the 1.2 billion population are Muslims, and halal is an indispensable part of their life.
Based on this growth trend, the global halal market value is expected to reach $3.7 trillion by the end of this year.
The current global halal trade faces four major challenges:
- Sourcing – Procurement is currently a very inefficient process. Buyers and suppliers rely on exhibitions and tradeshows to connect. A lot of time and effort is needed for the relevant suppliers to find buyers and vice-versa. Even after getting connected, follow up communication is tedious and the conversion rate is low.
- Halal certification – With a few hundred certification bodies worldwide, there is no reliable and standardized process to help buyers verify the certification of a product, especially if the product is not produced locally. Buyers need to spend a lot of time and effort verifying the authenticity of the halal certification.
- Supply chain – Cross border fulfillment is complex and involves multiple parties. In addition, interaction with most logistics providers is paper-based and inefficient. Also, most logistics companies do not have transportation and warehousing solutions for halal products. As such, buyers may find it difficult to procure from suppliers, especially so for foreign suppliers.
- Cross border payment – There is a lack of trust between new buyers and sellers during the initial transaction. The cross border payment network is complex, slow and expensive. The high cost and lack of visibility discourage trade.
About HalalNode
HalalNode was founded in 2018. The team comprises of experienced professionals in e-commerce, supply chain, and halal trade. It aims to provide buyers with a one-stop online trading platform, to address the challenges of business matching, halal verification, payment and supply chain in the halal B2B market. HalalNode hopes to help sellers and buyers reduce transaction risk and information asymmetry to increase efficiency and promote trade.
About Choice International Forwarding Co. Ltd
Founded in Guangzhou in 1997, Choice has been providing a complete one-stop logistics service for customers in the Middle East, Africa, and other countries. Today, Choice is a specialized international integrated logistics enterprise with transnational operations, engaged in export cargo transportation and logistics services in the Middle East and Africa.
The company leverages on technology to ensure effective quality management, financial management. Choice is committed to improving its service continuously and has established customised solutions for the needs of different customers in the Middle East, Africa. This has enabled Choice to provide customers with better service standards, a wider network and the reliable movement of goods. Choice offers services from all major Chinese ports and has overseas agents in more than 50 countries.
HalalNode and Choice scope of cooperation
As part of the MOU, Choice will use their deep knowledge of logistics and warehousing in Africa and the Middle East to help HalalNode build a one-stop supply chain solution. This would allow HalalNode buyers to access the Middle Eastern and African markets, and sellers in these markets to export to other key markets globally.
“The export of packaged food products from Indonesia to Africa and cotton cultivated from Africa to Indonesia is an area that looks very promising for our collaboration”, says Yi Chong Chua, COO HalalNode.
HalalNode and Momentum Works will use their experience of e-commerce to help grow the ecommerce ecosystem for Choice’s customers, many of whom are looking to transform from traditional trade to ecommerce.