The Indian real estate has been known to dole out discounts & freebies every festive season to reap the auspicious spirit. It worked well for the sector for quite some time as the Indians are traditionally known to buy property during the festivals. However, the slowdown in the last five years made the marketing strategists look for alternative ways & means to bring the buyers back to the property market during the festive season. Track2Realty analyses the market trend.
This festive season the market buzz is not discounts & freebies but value. The sector is fast evolving from its early days of tried & tested marketing campaigns. There are a lot more innovations, like buy back if prices fall below 10 per cent or tangible discounts with group corporate bookings. BTL has suddenly taken precedence over the ATL.
And hence we asked the industry stakeholders some pertinent questions like:
Would you agree that the tried & tested method of discounts & freebies no longer work in today’s housing market?
Does this festive season need more innovation with marketing to increase sales velocity?
What in your opinion is the right marketing strategy this festive season?
Bhavik Bhandari, Sr. VP, Marketing with Puravankara maintains that his experience is that customers wait for festive periods and auspicious occasions to book their dream homes. In return, they expect good discounts, offers, attractive payment plans, and other such offers. Having said that, deals and offers must be supported by a smartly designed product since most customers today are far better informed and are intuitive in their negotiations. But the interest in discounts and other offers definitely exists in the real estate market.
“A simple discount no longer works in a fiercely competitive market. Developers have to innovate their marketing message with other combinations to generate interest. Offers with a brilliant marketing message can still drive interest in the
project. But then again, it all boils down to having the right product, brand recall, and offer. The developer must believe in building high-quality products, delivering with the transparency and trust that the brand evokes. This is what matters most to increase sales velocity,” says Bhandari.
Aditya Kushwaha, CEO and Director Axis Ecorp also agrees that the Indian consumer has evolved and is looking beyond freebies and offers. Gone are the days when coupon discounts and shiny offers would lure consumers. They have realised that things are rarely given away for free with no strings attached. Rather than free gifts and gold coins, home buyers are more likely to be swayed by long-term benefits such as club membership and free parking. Some builders are also offering innovative payment schemes to attract more buyers.
“Yes, there is a need to reinvent the wheel. Innovations and out-of-the-box ideas are catching the eyes of consumers. There is an increased focus on experiential marketing. To lure homebuyers to buy under-construction properties, some developers are offering to pay rent till the time of possession. There is a strong demand for luxurious, more spacious homes. Concepts like holiday homes and studio apartments have also witnessed a strong uptick,” says Kushwaha.
Ashish Narain Agarwal, CEO, Property Pistol believes the freebies and discounts can be considered as a trigger to activation or enticement from a home buyer but not the decision maker while buying property. These offers can motivate and turn buyers to the real estate sector during the resiliency period of inflationary pressures; however, it cannot help convert a lead. Today’s urban home buyer is well-read and aware of the new real estate concepts and international trends. They are technology-oriented, and have a good understanding about the transformations taking place in the sector which allows them to make informed and thoughtful decisions.
“Yes, innovation is necessary to progress in any sector and real estate is not behind. The festive season is an indication of positivity and prosperity encouraging buyers to invest in homes. Although discounts and freebies are one of the major components of festive marketing, it needs to be more practical and radical in approach. Technology-based marketing can also prove relevant to augment the approach, become innovative and stand out in the clutter,” says Agarwal.
In terms of the festive strategy the marketing campaign must be centred around the product, generating core interest to attract the buyers. The festive offers must be a subtle outlier to the core strength, the brand, and the product. Marketing campaigns must be 360 degrees and must build value for the product. Real estate developers must remember that the home is the product, not the offer itself. They must use offers to push for a buying decision instead of expecting it to drive purchase decisions. Of course, they must also provide ease of buying through offers like payment plans and surprise elements like festive gifts.
Striking the right balance is necessary. Nowadays, buyers focus more on quality than quantity, and hence festive offers can trigger interest only when the final product is exceptional. Apart from discounts and offers, developers must also look forward to aggressive festive campaigns, analytical results on campaigns, popular platforms for lead generation, quick responses through SMS and emails, testimonials from existing customers, construction updates, and blog posts about properties.
Exhibitions and expos are also excellent platforms that help developers to present their best projects and home buyers are also given ample options and offers to choose from. The use of Prop Tech with efficient techniques like interactive mobile applications, 360-degree views of project sites, virtual tours, artificial intelligence, chatbots, and drone services can also help, especially to make the promotions attractive and unique.
Ravi Sinha
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Track2Realty is an independent media group managed by a consortium of journalists. Starting as the first e-newspaper in the Indian real estate sector in 2011, the group has today evolved as a think-tank on the sector with specialized research reports and rating & ranking. We are editorially independent and free from commercial bias and/or influenced by investors or shareholders. Our editorial team has no clash of interest in practicing high quality journalism that is free, frank & fearless.
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