Following an accelerated expansion in the Nordics and extensive investments in its digital capabilities, Musti’s customer-centric omnichannel strategy is positioning the company at the forefront of industry innovation.
Headquartered in Helsinki, Finland, Musti Group (or “Musti”) is the leading Nordic pet care specialist offering a wide range of pet supplies, accessories, foods and services. EQT Mid Market acquired Musti Group in December 2014 and since then, things have progressed rapidly.
Shortly after the acquisition, Musti established a solid platform from which it has driven rapid market expansion in a mission to become the leading pan-Nordic group. In early 2015, the company expanded its presence in Sweden after acquiring the franchiser of pet specialty chains “Arken Zoo” and “Djurmagazinet”. The add-on also included “Trimmis” grooming salons and the veterinary chain “Vettris”. In late 2016, EQT supported the company’s entry into the Norwegian market, which much like its Nordic neighbors, is highly fragmented.
Following an ambitious consolidation strategy and strong organic growth trajectory, Musti today serves over one million customers. The company applies an omnichannel sales strategy where some 25% of all sales derive from its digital channels, which are supported by its network of more than 270 physical stores across Finland, Sweden and Norway.
To meet the demands of its omnichannel strategy and to serve its customers in the best possible way, Musti has restructured its organization and brought in a dedicated, Nordic-wide omnichannel team with in-house developers. By using customer data, Musti has refined its forecasting and ERP systems to meet customer-specific demand, resulting in more updated inventory levels, reduced waste and more efficient deliveries, thus increasing customer value. Musti also offers local online customer service and flexible subscription-based options where customers can pick up goods at a store or choose convenient delivery options, right to their doorstep.
David Rönnberg, CEO at Musti Group, comments: “At Musti, the recipe for success is to make people’s lives easier, meaning that all business decisions are made based on customers’ needs. We are proud of the trust the Nordic pet community has placed on us, which is evidenced by the recent milestone of reaching one million active customers and a ‘like-for-like’ sales growth of over 10% during the past twelve months. Having access to EQT’s digital team’s resources and sector expertise in e-commerce has been essential in sophisticating Musti’s omnichannel sales strategy, which was recently observed in a Google case study. Looking ahead, Musti is better-positioned to capture new growth opportunities, as we aim to create as much value as possible for pets and their owners.”
In late 2018, Musti was happy to welcome the digital pioneer Lisa Farrar to the board, adding unique experience from her time as Chief Digital Office at Nordic Choice Hotels and Managing Director at Groupon and MrJet.
In recent years, the pet specialty industry has seen a growing “pet parenting” trend where consumers tend to perceive and treat their pets as family members. This shift has also influenced pet owners’ consumption behavior and increasing demand for transparency. Due to boosted awareness relating to ingredients in pet food, Musti introduced a wide assortment of healthy alternatives with less fat and higher levels of protein and fiber. In addition, Musti is experiencing a rising demand for its “pet wellness services”, such as pet spas, grooming, light vet, nail clipping and puppy training classes – services which, until recently, have been overlooked by other major industry players.
Jarkko Murtoaro, Director at EQT Partners and Investment Advisor to EQT Mid Market, concludes: “Musti has developed immensely over the past few years, and has gone from being a local Finnish pet specialist to becoming the largest Nordic pet specialty player, almost tripling sales and its employee base. EQT is deeply impressed by David and his management team in their efforts to create the multi-brand platform that allows Musti to customize its product and service offering based on the needs of different customers.”
Read more about Musti Group here.