Konekesko
Konekesko is a service company specialising
in the import and sales of construction
and environmental machinery,
trucks and buses, and recreational
machinery.
Konekesko operates in Finland, the
Baltic countries and Russia.
Konekesko arranges the manufacture
of and sells Yamarin boats in Finland
and exports them to several European
countries and Russia. Konekesko is also
engaged in the trade of construction and
environmental machinery in St. Petersburg.
Market
In addition to quality-conscious consumers,
Konekesko's most important
customer groups include construction,
materials handling, transportation and
service sector companies, and towns and
municipalities.
Konekesko's sales of recreational
machinery are based on close and long
cooperation with Yamaha Motor Co. Quality-
conscious consumers are served by
the nationwide Yamaha dealer network.
The Finnish market for recreational
machinery totals about €400 million.
Export sales of Konekesko's own range
of Yamarin boats account for about 72%
of total sales. In Finland, Yamarin is
number one in the market for glass-reinforced
plastic boats.
Yamaha outboard motors have been
market leaders in Finland for as long as
30 years. Market shares of Yamaha outboards,
motorcycles, mopeds, ATVs and
snowmobiles vary between 7–33%
depending on the size category.
Construction and environmental
machinery and MAN trucks and buses are
marketed through Konekesko's own
dealer organisation. The Finnish market
for construction and environmental
machinery totals approximately €400
million and for trucks (weight class of
over 6 tons) about €700 million.
The Baltic market for construction,
environmental and forest machinery
totals some €300 million.
In Russia, the construction and environmental
machinery market in the St.
Petersburg area totals some €500 million.
Strengths
Konekesko offers its customers the leading
machinery brands and is responsible
for their marketing and sales throughout
the marketing area. Konekesko also
offers diversified after-sales services to
its customers either through its own or a
contract service network.
Konekesko's strengths include its highquality
products and services, comprehensive
network, efficient operating
methods, and skilled and service-oriented
staff. The target is to reach a sales
growth exceeding that of the market in
selected business areas.
Year 2008
In 2008, Konekesko's net sales decreased
by 6.5% to €214.5 million. Net sales from
export operations were €33 million.
Investments in 2008 totalled €7.9 million,
with most of them in the new heavy
machinery repair workshop in Vantaa,
the new operations centre in Tampere
and in the acquisition of new business
operations.
After the summer, sales of boats took a
sharp downward turn in the most important
export markets (Norway, Sweden).
The decrease in the Finnish boat market
was more moderate than in the
export market. The new Yamarin boat
models for the 2008 season were successful.
In October, Konekesko acquired the
business operations of Suvi boats to
strengthen its boat business.
The growth targets set for market
shares in the MAN business in Finland
were achieved. In October, Konekesko
established a subsidiary in St. Petersburg,
Russia for the construction and environmental
machinery business.
The Baltic market for construction,
environmental and forest machinery
declined heavily, but Konekesko's market
position in the area strengthened.
Objectives
Konekesko's objective is to increase its market share with the help of the strong brands it represents and by providing good customer service.
Sports trade – Intersport Finland
Intersport Finland's retail store chains in
Finland are Intersport, Budget Sport and
Kesport. Intersport Finland is responsible
for the marketing, sourcing and logistics
services, store network and retailer
resources of the chains.
The Intersport chain is the market
leader in Finnish sports retailing. Intersport's
customers are quality-conscious
consumers who actively engage in sport
and physical exercise and who value
good service. Intersport stores are located
in downtown areas and shopping centres.
Intersport's strengths include the
chain's high reliability and recognition
among customers, wide and diversified
selections, and its expert and serviceminded
staff, whose sales and service
competence is systematically enhanced.
The Kesport stores are located in
smaller rural centres and are the leading
sports stores in their areas.
Budget Sport is Intersport International
Corporation's new sports store format.
Based on cost-effective operations and
low prices, it offers the sector's largest
selections in outdoor activity-related
product groups. Budget Sport's customers
are interested in outdoor activities and
value low prices and ease of purchasing.
There are 57 Intersport stores, 38
Kesport stores and four Budget Sport
stores in Finland, of which 93 are owned
by retailer entrepreneurs and six by
Intersport Finland.
Market
The sports trade market in Finland is
growing at the rate of about 2% per year.
People are becoming more and more
interested in maintaining their health
and increasing their wellbeing. This is
reflected in the sales growth of clothing
and shoes for various sports, fitness and
outdoor activities, for example.
The main competitors of the Intersport
Finland chains include Sportia, Top Sport,
Stadium, department stores and hypermarkets,
and other speciality stores.
Year 2008
The net sales of Intersport Finland were
€158 million in 2008, representing an
increase of 7.5%. The combined retail
sales of Intersport, Budget Sport and
Kesport stores were €289 million, up
by 5.5%.
In autumn 2008, a new Intersport
store was opened in Nummela. New
Budget Sport outlets were opened in
the spring in Friisilä, Espoo and in
Kuninkoja, Raisio.
Objectives
The chains of Intersport Finland aim at
growth exceeding the market average.
This will be achieved by enhancing the
staff's sales and service competence
and improving the store concepts.
The fifth Budget Sport store will be
opened in Oulu in spring 2009. The
Budget Sport online store to complement
and diversify the network of
stores will also be opened in the
spring.
Intersport Finland is making preparations
to open sports stores in the
Baltic countries.
Furniture and interior decoration trade – Indoor
Indoor is a furniture and interior
decoration retailer which operates
in Finland and the Baltic countries.
Its store chains are Asko and Sotka,
and there are a total of 84 stores in
Finland, six in Latvia and seven in
Estonia. In Finland, 58 of the stores
are owned by Indoor, while 26
operate as a franchise.
Asko provides quality- and
brand-conscious home decorators
with an up-to-date and competitive
product range combined with the best
service in the sector, ease of purchasing
and delivery accuracy.
Sotka offers consumers who value low
prices with the most competitive range in
the sector, combined with high delivery
accuracy and quick and easy shopping.
Market
Interest in home furnishing and decoration continued in 2008. During the autumn, the prevailing uncertainty in economy made consumers more prudent in their shopping behaviour. Investments by many chains in the sector further intensified competition. It is estimated that the Finnish furniture market was worth about €1.3 billion. The Asko and Sotka chains maintained their position as the Finnish market leader despite greater competition, and they increased their market share in the Baltic countries.
Year 2008
Indoor's net sales totalled €177 million in
2008, down by 9.7%. The retail sales of
the Asko and Sotka chains in Finland
were €202 million (incl. VAT), down by
4.4%. Operations in Sweden were disposed
of in spring. In Finland, new Asko
and Sotka stores were opened in Tuusula
and Kotka, and refurbished Asko stores
were opened in Oulu and Varkaus. The
second Asko and Sotka stores were
opened in Tallinn, Estonia.
A design competition was arranged for
young furniture designers to celebrate
Asko's 90th anniversary. The aim was to
support the career development of young
designers and to look for new ideas for
the Asko collection. The competition winners
were Janne Reponen and Johanna
Laisi. The Asko jubilee collection, launched
on the market in the autumn, was
designed by interior architect, professor
h.c. Eero Aarnio.
Objectives
Indoor will continue renewing the Asko brand and will focus strongly on enhancing both chains' sales and service competence. The focal points in 2009 will also include improvements in the costefficiency of the chains and sizable logistics projects.
Home technology trade
– Musta Pörssi
The Musta Pörssi chain and the Konebox.
fi online store provide home technology
products and services.
The Musta Pörssi chain of speciality
stores offers its customers home technology
products that make housework easier,
enhance communications and provide
entertainment. In addition, Musta
Pörssi offers a comprehensive range of
product-related services. Customers can
also choose to have all home technology
installed so that it's ready to use.
The chain consists of 53 stores specialising
in home technology, of which 47 are
owned by retailer entrepreneurs and six
by Musta Pörssi Ltd.
On the home technology market,
Konebox competes with quality products,
their good availability and low prices.
The low prices are guaranteed by efficient
logistics and warehousing combined with
the online store's self-service. Customers
can buy products either from the store or
online and pick them up from the store
or have them delivered to their homes.
The business model of Konebox differs
clearly from that of Musta Pörssi and
together they make up a whole that
meets different customer needs. The
Musta Pörssi and Konebox.fi chains provide
a reliable site for consumers who
value services and quick online shopping.
Market
The Finnish total market for home technology products is about €2 billion. The market grew in early 2008, when Finnish cable-network households moved into the era of digital TV broadcasts, but the demand for home technology products declined towards the end of the year along with the overall economic development.
Year 2008
The net sales of Musta Pörssi Ltd were €123 million, representing a decrease of 16.8%. The total retail sales of the Musta Pörssi and Konebox.fi stores were €183 million and, a decrease of 9.6% from the previous year. Konebox.fi, which combines the best aspects of online shopping and a conventional store, was opened at the end of October.
Shoe trade – Kenkäkesko
Kenkäkesko's retail store chains are K-kenkä and Andiamo. K-kenkä is a shoe store for the whole family, offering its customers a wide selection of branded footwear and expert service. Andiamo's main target group is trendy and fashionconscious shoppers, for whom the store offers a fashionable selection of shoes that is constantly being updated. The K-Group's speciality shoe outlets also include the Kenkäexpertti stores which operate in smaller towns.
Market
The total retail market for shoes in Finland is approximately €570 million. New operators have increased the overall supply in the sector. The retail sales growth of Kenkäkesko's stores have exceeded the average in the sector, and account for about 11% of the total market. In addition to Kenkäkesko's chain stores, the highest increase in terms of market shares was recorded for shoe sales in sports stores.
Year 2008
The net sales of Kenkäkesko were €26
million in 2008, an increase of 12.6%.
The sales of the Andiamo and K-kenkä
stores increased by 9.2%, and the combined
sales of all of the K-Group's speciality
shoe stores amounted to €62 million.
There were 54 chain stores at the end
of 2008: 33 K-kenkä, 18 Andiamo and
three combined Andiamo/K-kenkä stores.
There were also 40 Kenkäexpertti stores,
which operate outside the chains. Three
of the chain stores are owned by
Kenkäkesko and the others by retailer
entrepreneurs.
In 2008, six new K-kenkä, one Andiamo
and one combined Andiamo/K-kenkä
stores were opened.
Kenkäkesko participated in the communications
and marketing sector's climate
project and supported the WWF's
climate change opportunity project by
selling shopping bags in Andiamo shoe
stores made by the design company
Globe Hope using Andiamo's old marketing
materials.
Objectives
The K-kenkä and Andiamo stores aim to exceed the average sales growth in the sector, and to achieve this by increasing the store network and offering customers comprehensive selections of footwear with a competitive price/quality ratio. The operational priorities also include enhancing staff skills, in particular retail sales and service competence, throughout the whole chain and improving the cost-efficiency of the operations chain.
Synergy benefits from cooperation
Anttila, home and speciality goods of K-citymarket and other home and speciality goods companies of the Kesko Group will intensify their cooperation in 2009. Synergy benefits are sought, above all, in product sourcing and purchasing, management and customer relationship management.
