What are the major trends, issues and challenges facing cooperatives and mutuals? What are their development strategies? These questions inspired the names of two groundbreaking international studies, the results of which were presented for the first time by the research group McKinsey & Company.
The panelists, who are prominent global leaders. commented on the conclusions of these studies made during the round tables, themed “The role of cooperatives and mutuals in the global economy – From theory to practice” and “Cooperatives and mutuals, a distinctive and effective business model – An alternative to the prevailing business model”.
- Growth is a priority for cooperatives. We conducted a survey of senior cooperative executives around the world and found that 96% rated growth as very or extremely important.
- Cooperatives grow at nearly the same rate as the markets in which they operate, but differences exist in terms of geography and sector.
- The sources of growth have three main drivers: market share gain, portfolio momentum and mergers & acquisitions.
In addition, McKinsey & Company evaluated trends in the retail, banking and agricultural sectors. Here are some key points:
- Retailers will need to provide a seamless multichannel customer experience.
- More than half of the growth in global retail revenue will come from emerging markets during the next decade.
- Banks will need to dramatically cut costs and become significantly more efficient in the face of the increased cost of regulatory compliance.
- Emerging markets will represent 50% of world banking revenue in 2020 (up from 34% in 2010), with more than 60% of revenue growth in banking coming from emerging markets.
- Developing new land will be difficult and expensive and may conflict with political or environmental goals.
- Digitization and automation of farms is profoundly changing farming operations.
To learn more, please see the data sheet of the studies entitled Global trends, opportunities and challenges facing cooperatives and mutuals and Growth and development strategies for the cooperative and mutualist business model.