$2 million global force | Co-ops perceived as small, rural, old-fashioned
QUEBEC CITY — The large and economically powerful co-operative sector has a serious image problem, says an international consumer attitude study.
The study, which was based on focus groups and released during an international co-op summit in Quebec City earlier this month, suggested that many people think of the co-operative sector as small, rural-based and old-fashioned rather than the $2 trillion global force it has become.
Many in the focus groups said that if co-ops are large and successful, it must be at the expense of their co-operative ideals or member interests.
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The study by the polling firm Ipsos Marketing and the Université de Québec a Montréal argued that the sector has a major sales job to do.
“In order for large co-operatives to gain appeal, they must first gain trust and doing so will require that they explain how they have attained their size without sacrificing their principles,” it said.
“More specifically, how they continue to be community oriented and democratically run while also earning billions of dollars and having thousands of members.”
The co-op economy worldwide has revenues of close to $2 trillion annually and 100 billion members.
However, the study said co-ops have done a poor job selling themselves to a skeptical or indifferent public. There is little teaching of the co-operative model in business schools, and co-ops tend to communicate with their members rather than with the broader public about what they have to offer.
“The principles of the co-operative model are indeed appealing to many, but if individuals do not believe that a co-operative actually adheres to these principles, and they do not for the large co-operatives, then they are left to make a purchase decision based on the price-quality ratio which in most instances is believed to be higher at private corporations,” it said.
The Ipsos study argued that co-ops “need to demonstrate that they can be competitive, that they can help the community and still provide great deals.”
They also must convince consumers that they are real businesses and not simply socially minded do-good organizations.
“Many people believe that they will have to make sacrifices in order to do business with a co-operative and only those who are truly committed to sustainable business will be enticed by them,” said the report.
“Those who only care about the best deal or who are on the fence will likely be lured away by a perception that they will be able to receive more for their money in other enterprises that are not ‘burdened’ by the need to redistribute the profits or to invest them in the community.”
