A store selection based on customer needs, large inventories, in-house logistics, and continuous operational development are central operational methods for the RTV chain. The company also believes that when times are difficult, you should invest more rather than slow down.
Store assortments are typically customized according to customer wishes. However, it is quite unique that stores belonging to the same chain can be completely different in content depending on the location.
RTV Yhtymä Oy is Finland's leading privately owned specialty store for paints and surface materials. Although the logo on the roof is the same in all of the nearly 50 stores in Finland, customers find a completely different selection at, for example, the Turku Satakunnantie and Kemiö locations. The chain's stores are permitted to adapt to the market and operate in a way that suits their own region. For example, construction materials are not sold in Turku, but there is a high demand for them in Kemiö. Kemiö also has a large gardening department, which is not found in Turku.
The market is changing, and a company must keep up with the times. Tommi Suominen
– In Turku, the market for construction materials is so competitive that it is not worth entering. In Kemiö and Perniö, on the other hand, there is not as much competition, so the business is very profitable there, says RTV Turku's Regional Director Tommi Suominen.
– This way of operating is unique in Finland for such a large chain, but our local managers are allowed to act as they see fit. Trust is high. Some think this is completely nonsensical, and of course there are both pros and cons, but at least we are a genuinely customer-oriented company, Suominen summarizes.
RTV started its operations over 70 years ago as a hardware store, but the business soon expanded into surface materials. In recent years, the company has also expanded its operations into construction materials. It is constantly looking for new operating models and pillars for its business.
The market is changing, and a company must move with the times. If we only offer surface materials, we join projects quite late. In that case, those who can offer that first brick are often at an advantage, Suominen reflects.
RTV Turku has shown steady growth throughout its 13-year journey, even though those years have included two downturns. During financially difficult times, the company has often recruited more talent and pressed the gas pedal instead of the brakes.
– When the market slows down, it is worth considering if it is really the right time to start saving and laying people off. Does business improve from that? We believe that that is exactly when you should try new things. Market shares are divided when times are tough. That is the best time to find customers and partners. When times start to improve, we are ready for the upswing.
Suominen says that during quiet times in particular, you must be actively in contact with customers and invent new things, for example by organizing customer events.
– This is attention economy: when everyone is doing things at the same time, it is harder to stand out. But when it's quieter, even small efforts have great value.
RTV has also swum against the current in many of its other solutions. While many industry players want to keep inventory turnover fast, RTV thinks that the customer should get products off the shelf immediately. While many have outsourced their logistics, RTV has its own trucks and its own drivers. Therefore, it is able to deliver goods exactly when the customer needs them – even with 15-minute precision.
– We want our customers to know that when they come to us, the job gets done to the end.
In a hardening market situation, the companies that are able to produce added value will succeed, Suominen emphasizes.
– You could always compete by being cheaper than others and dropping your prices – until at some point the business stops. Or you can prefer to justify why you are more expensive than a competitor. Because you provide significant added value to your partners.
Renovation and pipe renovations have emerged as a significant success story for the company in recent years. Six years ago, RTV sold mainly paints, adhesives, and leveling compounds for these projects. Then a partner suggested that it would be worth selling tiles and bathroom furniture to the same firms as well.
At first, the matter was treated as half a joke, but then it was tested and it was discovered that the solution is excellent. Suominen says that RTV is now the market leader as a supplier of tiles and furniture for pipe renovations in Southwest Finland.
We are able to offer high-quality solutions at a reasonable price. Tommi Suominen
“We are able to offer high-quality solutions at a reasonable price. A pipe renovation is such a significant expense that the bathroom is often renewed at the same time. Therefore, the customer may not want the most common tile and the cheapest mirror cabinet, but something that reflects their personal style.”
RTV has created a service that provides significant added value for partners. For example, model rooms the size of an average apartment bathroom have been built in the Turku store. In them, the customer can see how tiles and other surfaces look as a whole or how bathroom furniture fits into a space of a certain size.
“In addition, we can make an agreement with developers that customers from the renovation site can come and visit us. We present the selection available at the agreed price. Furthermore, if they wish, the customer can choose a more expensive version from our selection instead. We handle everything related to the process, and the developer does not need to spend time on it.”