The Co-op Group Wednesday launched one of its biggest ever campaigns to encourage the UK into a nation of co-operators, explaining the benefits both financially and socially of a cooperative business model.
The 180-year-old cooperative launched the ‘Owned by You. Right By You’ campaign as a new survey revealed that over 50 per cent 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, Co-op noted. In the European Union, over 140 million people, who constitute 31 per cent of the EU's population, are members of a cooperative.
Despite the lack of understanding amongst UK consumers, they state that quality products (82%), community support (71%), and ethical practices (65%) are most important when choosing a local business. Additionally, there is a strong alignment between consumer values and cooperative practices, with 30 per cent of consumers deterred by misalignment of values and 34 per cent by unethical business spending.
The new Labour government 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. 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 would give them more backing.
“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,” Kenyatte Nelson, chief customer and membership officer at Co-op, said.
“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.”
The new campaign will run until 21 August, 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 the campaign creative.
“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,” Nelson added.
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.
Earlier this year, the retailer has announced ambitions to substantially grow its membership from 5 million to 8 million by 2030.
