RAMVEK - Business in Focus...2 Since 1988, Ramvek has been a leading retail shopfitting and...
Transcript of RAMVEK - Business in Focus...2 Since 1988, Ramvek has been a leading retail shopfitting and...
RAMVEK
2
Since 1988, Ramvek has been a leading retail shopfitting and hospitality fit-out company producing quality projects for commercial and retail clients. The company is capable of both high-end and complex work delivered from its five thousand square metre manufacturing facility.
3
Written by John Boley
The shopfitting industry has given itself something of
a new look, having lost a few major players during the
lean times in the last couple of years.
So says Mark White, founding director of Melbourne-based
Ramvek. He breaks the sector into two main categories based
on the size of the client. Many local contractors are able to work
for small, usually individual, retail outlets. Just a few companies
are capable of providing a sufficiently comprehensive service
to handle the larger clients – including the global retail chains
now (perhaps belatedly) invading the Australian high street
and shopping centre.
Mark says although there is a glut of the smaller companies,
“at the other end, there probably are not that many shopfitters
around with the capacity and size to deal with the big names.”
Major retailers require a national presence and a team large
enough to cope with a roll-out across Australia. Ramvek has
upped its game accordingly. Its website, for example, is “very
much focused on and aimed at people looking at our profile
from overseas.” Ramvek wants to be at the forefront when a
global name comes to town.
There is always a danger of a boom-and-bust economy in this
sector – boom at present with the influx of the major brands
following several bust years – but Mark says Ramvek has
staying power, having been around for more than twenty-five
years already. “We have experienced several of these cycles.
In the firm times, you have to make sure you don’t get ahead
of yourself. You need to be smart in how you do things and
choose wisely when it comes to projects. “
It is also important to know in advance and have good rela-
tionships with appropriately skilled subcontractors who can be
called upon when things get really hectic. “In a way, it’s good
when it is tough because then you need to make yourself
much more efficient, and you come out the other side a better
company.”
Mark Gale, Sales and Marketing Manager, points out that
Ramvek has other related business areas that tend to balance
out the overall picture. In the last two years, for example, the
company has carried out a lot of high-end projects in the hos-
pitality sector, which has been particularly buoyant (mirror-
ing the manner in which the food and beverage market has
been in many ways propping up the whole retailing sector and
breathing life into shopping malls and high streets up till the
new boom of 2014).
A level of versatility is essential in a market such as Australia that
is of limited size; if you stick to only one area of expertise, you
limit yourself too much, he says. “It’s an opportunity – you can
spread your wings and get into other sectors.” In addition to
retail (names include: Burberry, Chanel, David Jones, Sportsgirl
and Miu Miu) and hospitality (including: The Emerson Hotel,
The Duke of Wellington Hotel, Charlie Dumpling and Mel-
bourne airport eatery), Ramvek is adept at commercial fit-out
(examples include: Sheraton, Novotel and Langham hotels,
Hawthorn footy club).
RAMVEK
ActBalancing
4
Rather than overreach and try to cover all the bases in-house,
Ramvek has developed a close relationship with a couple of
leading architectural practices so it can offer a full end-to-end
design and construct programme for clients who want new
ideas instead of coming to the company with a brand DNA
already established.
“Ramvek wants to be at the forefront when a global name
comes to town.”
Is there a gap between architectural design dreams and the
reality of commercialisation? “Generally, we would build to what
the architect requests, but if it was not commercially achievable
we would advise accordingly. Most architects do understand
commercial reality.” But if a client agrees with the architect on a
fabulous finish from Finland, “we go to Finland and get it. That’s
our job. Depending on who they are, some of our clients are
prepared to pay for that service.”
The whole sector benefits from the increasing importance of
displaying any particular brand to its absolute best advantage.
“Nowadays, that brand image has to run all the way from the
merchandise to their shopfitting, so that has to reflect the quality
or even the price point. There is no doubt that corporations are
prepared to spend money on exactly what they want because
they see it as that important.” Typically, a big brand knows the
cost of what it needs but would nevertheless take a project to
tender; its price per square metre tends to be higher, though,
because it really does need the very best. Ramvek can dial in
whatever combination of quality and image the client needs.
5
COMMUNITY WORK IN ARNHEM LAND
Ramvek is both proud of and enthusiastic about a project that supports Aboriginal communities
a long, long way from its Victorian headquarters. Through the Arnhem Land Progress Aborigi-
nal Corporation (ALPA) and its Job Creation Program arm (RJCP), the company has teamed up
with Swinburne University to initiate a programme to get young Aboriginal people interested and
involved in furniture manufacture.
The establishment of a small facility in Milingimbi, some 400 kilometres east of Darwin, was
followed by a learning workshop. The aim is for the facility to become a viable business which will
create employment and put profits back into the community.
Established in 1972, ALPA (which is owned the Yolngu residents of Minjilang, Ramingining,
Milingimbi, Galiwin’ku and Gapuwiyak communities in Northern Territory) began as a co-opera-
tive of community stores in seven Arnhem Land communities. Today, the group has a turnover
of approximately $75 million per annum. The successful retail enterprise includes self-service,
air-conditioned stores offering an extensive range of quality goods to remote communities. It’s a
long way from the small, counter sales stores in tin sheds of forty years ago. The plan envisaged
by Swinburne and Ramvek is to manufacture furniture (having taught the local people how to do
it well) and distribute it through the ALPA network of stores, before progressing to selling special
pieces to the wider Australian market.
Ramvek says it is “proud to be working with ALPA: an Aboriginal-owned and run organisation, who
operate many successful community retail stores with a focus on training education and develop-
ment, as well as providing support to broader community activities.”
Mark White says the industry has swung round from a decade
or so ago, when fit-out companies did everything in-house,
to a situation in many cases in which some companies are little
more than an office that outsources every aspect of a project.
Ramvek still does the majority of its own work – painting and
metalwork, for example, manufacturing most of its components.
“We find that if we can get clients to our premises to see our
manufacturing facility, we win them over because they feel
comfortable we know what we are doing because we are
doing it ourselves. If the project manager, the joinery, the met-
alworking in-house, you really have control of the destiny of the
project.” Some work is subcontracted out – notably electrical
and floor-covering, “but less than most others. We feel it is one
of our best sales tools, and we are very proud of it.”
One of the features of Ramvek’s service offer is its ‘international
manufacturing program’. This dates back to 1999 when the
company worked on a new Borders book store in Melbourne.
The client said it would ship all the joinery, and when it arrived
from China and was seen to be of high quality it acted as an
eye-opener for Mark and his team. A Chinese speaker was
soon employed; communications with suppliers then obvious-
ly improved, quality rose and imports became integrated with
Ramvek’s own factory’s output, “in order to remain competitive”.
“Our overseas product has reached the point where our on-site
supervisors cannot tell whether what we bring in is from our
Victorian plant or overseas.” If it comes in from Shanghai, it is
carefully inspected by Ramvek staff, and if it passes muster, it
gets a Ramvek stamp, which is part of the reassurance factor
for clients.
Will the proportion of manufactured items from overseas
increase? “With the cost of labour rising all the time, the answer
is ‘unfortunately, yes’.” In order for Ramvek to do its best on its
clients’ behalf, its role will gradually shift from local manufac-
ture to sourcing cost-effectiveness. As long as Ramvek remains
vigilant and retains its quality focus, says Mark, the local and
overseas joinery will continue to complement each other.
Level 11, Suite 11.01, 60 Castlereagh St, Sydney, NSW 2000, AustraliaPhone: 02 8412 8170 | ABN 93 143 238 126
Ramvek
11 Chaple Street, Lynbrook
Melbourne 3975 Australia
P: +613 9794 9342
F: +613 9794 6332
www.ramvek.com.au
RAMVEK