Citi Private Bank Teams with Campden Wealth to Produce Top 50 Global Challengers Study
29 March 2017 - 8:00PM
Business Wire
New Research shows Mid-sized family businesses
embrace globalisation to grow
Key findings:
- While over half (62%) of the world’s
top fast growing, mid-sized family businesses come from Europe or
North America, their operating businesses reach far and wide across
the globe. They are active across 3.7 regions on average;
- These family businesses often focus
on a single sector for their success;
- They are predominantly active in
‘Retail, Consumer Goods and Lifestyle’ (24%) and ‘Agriculture, Food
and Beverage’ (24%);
- People are their key strength - they
employ 15,000 workers on average;
- Corporate Social Responsibility is
important to their business success and is a way to engage the next
generation of family members.
Campden Wealth Research, in partnership with Citi Private Bank,
has today launched the Top 50 Global Challengers study. The new
research celebrates the growth of mid-sized family businesses
around the world. It profiles 50 fast growing family businesses
with turnover between $200 million - $6 billion.
Masters of one trade, rather than jack
of all trades
The majority of the family businesses highlighted have found
success through expanding their operations internationally via a
single sector approach. Forty-three of the 50 family businesses
noted that they operate within one sector, with a reach that spans
3.7 regions on average.
While these businesses focus across 14 different sectors, they
are predominantly active in the secondary economy (the production
of goods from raw materials), with nearly half residing in either
‘Retail, Consumer Goods and Lifestyle’ (24%) and ‘Agriculture, Food
and Beverage’ (24%). Thus, it has been the mass market production
of consumer goods, distributed internationally, which has driven
the successful expansion of many of these firms.
Figure 1: Nature of Sector Active In
Agriculture, Food and Beverage 24%
Retail, Consumer Goods
and Lifestyle 24%
Supply Chain 14%
Automotive 10%
Infrastructure and Urban Development 10%
Energy
Technologies and Energy Utilities 8%
Global Health and
Healthcare 8%
Manufacturing 8%
Aviation and
Travel 6%
Banking and Capital Markets 6%
Insurance
and Asset Management 4%
Chemistry and Advanced Materials
2%
Media, Entertainment and Information 2%
Mining and
Metals 2%
Source: Campden Wealth/Citi Private Bank Top 50 Global
Challengers
Philip Watson, Head of Global Investment Lab for Citi Private
Bank says, “These sectors have benefited from significant
population growth, urbanisation, mass market production and a focus
on meeting consumer demands. With the advantage of requiring
relatively low capital investment in the early stages, families and
their businesses have developed strong and often highly competitive
ecosystems within their sectors.”
Manpower is a key input for these
family businesses
These family businesses are large employers of people, on
average hiring over 15,000 workers each. This underscores the
economic and social importance of these companies, particularly
within the local economies within which they operate.
Dr. Rebecca Gooch, Research Director for Campden Wealth,
commented on the findings, “Our research highlights that The Global
Top 50 Challengers are major employers of people all around the
world. Getting the best out of their large workforce and ensuring
that this will lead to their continued growth is a key ingredient
for the success of these family businesses.”
CSR is at the centre of these
businesses
Corporate Social Responsibility (CSR) policies are very much in
evidence among the Top 50 Global Challengers, with a high incidence
of reporting impact and having procedures for CSR policies within
the areas of social (86%) and environmental (82%) impact, and
employee involvement (74%).
Interviews with family business advisors also evidence that CSR
policies are a powerful tool to ensure that future generations
remain active in the family business.
Figure 2 CSR: Policies and Reporting
CSR Policies and Reporting Procedures for
Reports Impact on
Supplier engagement 42% 22%
Diversity 56% 38%
Customer engagement 56% 44%
Employee involvement 74% 68%
Environmental impact 82%
66%
Social impact 86% 72%
Source Campden Wealth/Citi Private Bank Top 50 Global
Challengers
Philip Watson highlights, “Strong CSR can help build the
reputation of companies, as well as their controlling families and
key stakeholders. Doing good for society and the environment, and
philanthropy helps consumers associate and build loyalty with
brands.”
About the research
In order to be considered for the list of Top 50 Global
Challengers, companies had to have turnover of between $200 million
– $6 billion, be at least 50% family-owned and have second
generation family members or later involved in the business. The
final qualifying and ranking criterion, sales growth, was
calculated by taking an average of the two most recent years of
annual growth.
Prospective family businesses for the initiative were identified
in three ways:
• Direct entry by family businesses following the promotion of
the initiative within the Campden Wealth community and publicity by
CampdenFB.
• Nominations of family businesses from the advisory community
that Campden Wealth has built up.
• Extensive secondary research on family businesses utilising
Campden’s database of family businesses and institutional
knowledge.
All the data on the profiled companies was either sourced from
the family businesses themselves or through publicly available
information. Much of the secondary data was obtained from the
profiled companies’ websites with some level of judgement applied.
While due care was taken, this data was not verified by the
company, and therefore its accuracy cannot be guaranteed.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170329005075/en/
Campden WealthDr. Rebecca
Goochrebeccagooch@campdenwealth.comorCiti Private BankBelinda
Marksbelinda.marks@citi.com
Citigroup (NYSE:C)
Historical Stock Chart
From Apr 2024 to May 2024
Citigroup (NYSE:C)
Historical Stock Chart
From May 2023 to May 2024