A product range based on customer needs, large stocks, in-house logistics, and continuous operational development are central operating practices of the RTV chain. The company also believes that when times are tough, you should invest more rather than slow down.
The store selection is typically customized according to customer wishes. However, it is quite unique that stores belonging to the same chain can have completely different contents 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 Finland's nearly 50 stores, the customer will find a completely different selection at the Turku Satakunnantie and Kemiö locations, for example. 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 in Kemiö there is high demand for them. Kemiö also has an extensive green section that does not exist 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 business is very profitable there, says RTV Turku's Regional Director Tommi Suominen.
– This way of working is unique in Finland for a chain of this size, but with us, the local manager is allowed to operate as they see best. There is a lot of trust. Some think this is completely absurd, 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 to include surface materials. In recent years, the company has also expanded into construction materials. It is constantly looking for new operating models and support pillars for its business.
The market changes, and the company must live in the times. If we only offer surface materials, we join projects quite late. In that case, those who can offer even the first block are often given priority, Suominen reflects.
Turku RTV has shown steady growth throughout its 13-year journey, even though the years have included two recessions. During economically difficult times, the company has often recruited more talent to its ranks and stepped on the gas instead of the brakes.
– When the market slows down, it is worth considering whether it is the right time to start saving and laying people off. Does that really make things better? In our opinion, that is exactly when you should be doing new things. Market shares are captured when times are tough. That is the best moment to find customers and partners. When times start to improve, you are ready to rise.
Suominen says that during quiet times, one should be actively in contact with customers and invent new things, for example by organizing customer events.
– This is an attention economy: when everyone is doing things at the same time, it is harder to stand out. But when things are quieter, even small efforts have great value.
RTV has also swum against the tide in many of its other solutions. While many players in the industry want to keep inventory turnover fast, RTV believes that the customer should be able to get products off the shelf immediately. While many have outsourced their logistics, RTV has its own trucks and its own drivers. It can therefore 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 from start to finish.
In a hardening market situation, those companies that can 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 ceases. Or you can rather justify why you are more expensive than a competitor. Because you produce significant added value for your partners.
Renovation construction and pipe repairs have emerged as a significant success story for the company in recent years. Six years ago, RTV primarily sold paints, glues, and fillers for these projects. Then a partner suggested that they should also sell tiles and bathroom furniture to the same firms.
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 repairs 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 basic tile and the cheapest mirrored cabinet, but something that reflects their own style.
RTV has created a service that provides significant added value to partners. For example, showroom 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 so that customers of the renovation project can come and visit us. We present the selection that is available at a agreed price. Furthermore, if desired, the customer can choose a more expensive version from our range instead. We handle everything related to the matter, and the developer does not have to spend time on it.