Today (Wednesday), the 180-year-old Co-op Group, launches one of its biggest ever campaigns, and biggest since 2016, to encourage the UK to be a ‘nation of co-operators,’ whereby the benefits both financially and socially of a cooperative business model are explained and embraced.
The ‘Owned by You. Right By You’ campaign is launched as a new survey, Opinion Matters, reveals that over 50% of consumers admit they don’t understand what it means when a business is a co-operative or a mutual and two fifths (42%) admit they don’t understand what constitutes a co-operative, or how being part of one could benefit themselves and their communities.
This contrasts with many European countries where co-operative businesses are integral to the culture and infrastructure of the nation, and being a member of a co-operative is the norm for the majority of citizens. In the European Union, over 140m people, which constitutes 31% of the EU’s population, are members of a cooperative.
Despite the lack of thorough understanding among UK consumers, they state that quality products (82%), community support (71%), and ethical practices (65%) are most important when choosing a local business, all key elements of a co-operative. Additionally, there is a strong alignment between consumer values and cooperative practices, with 30% of consumers deterred by misalignment of values and 34% by unethical business spending.
The new government has acknowledged the huge contribution cooperatives can make to the economy and has pledged to double the size of the UK’s co-operative and mutuals sector in its manifesto as part of its support for diverse business models which bring innovation and new products to the business sector. Research from Co-op indicates a growing public demand for more diverse models as over half of consumers (55%) are keen to see more co-operatives in business, and say they would give them more backing.
The Co-op currently has just over five million members who own the business, can have a say in how it is run, alongside how it spends its profits, and who benefit financially every time they shop through member only pricing and exclusive member offers, where they can save up to £500 a year.
The new campaign will run from today until August 21, launching with the advert airing tonight during Coronation Street on ITV1 and STV with a bespoke introduction as part of ITV’s Proud to Present. In an ITV first, Co-op will tease the advert with the ITV logo turning black and white to look like a receipt, mirroring Co-op’s ‘Receipt World’ creative.
Kenyatte Nelson, chief customer and membership officer at Co-op, said: “This new research shows there’s a real appetite for a different way of doing business in the UK – one that is fairer, more ethical and puts power in the hands of communities. At Co-op, we have been proudly delivering this across the UK for 180 years. By tackling this lack of awareness head-on, we aim to help even more people find businesses that share their values. Compared to our UK counterparts, as a business owned by you, we do right by you.
“Now is the time to champion the co-operative model and demonstrate how it provides a solution to many of the challenges we face today. That’s why we are on a mission to re-introduce Co-op’s core values and principles to the UK. Through our latest campaign, we hope to remind our customers that by simply shopping at Co-op as a member-owner, you get a say in how the business is run, lower prices on the products and services you need and, the opportunity to create better societal outcomes in the communities where you live.”
“Co-operatives are more than just financial entities. They foster a sense of community and empower consumers through active participation,” added Professor Tony Webster, a leading business historian on the co-operative movement at Northumbria University. “However, the UK’s narrow focus on consumer cooperatives and the general lack of education about the co-operative model have led to a decline in their visibility and impact. This is in stark contrast to mainland Europe where integrated cooperative economies are more common and are actively supported by legislation.”
The Co-op was founded 180 years ago by the Rochdale Pioneers Society, based on the notion of ethical trading and belief that the profits of the business should be shared amongst members according to their purchases. It was the world’s first ever cooperative business and created a business model which now exists globally, in a huge variety of industries and sectors. It is estimated that as a business model, the largest 300 cooperatives and mutuals report a total turnover of 2,409.41 billion USD, according to the International Cooperative Alliance’s World Cooperative Monitor.
Education is one of the Co-op’s founding principles, and the Rochdale Pioneers established the first Co-op school in 1850. This principle continues today, through the Co-op Academies Trust, which operates 36 schools and supports 20,000 students, and Co-op remains committed to supporting education investing another £1M this year, building on the multi-million investment over the last decade.
Co-op has recently seen the highest influx of member-owners in seven years. It is committed to delivering value for its members and earlier this year announced ambitions to substantially grow the number of member-owners from 5 million to 8 million by 2030.
