Track2Realty Exclusive: Many within the sector admit it is more often the case of lacking USP of the project added with the faulty communication and branding. This is being compensated by frivolous features which may bring the footfall but hardly translates into buying.
Some real estate brand analysts maintain the marketing cost of companies which have performed well, and have been into a constant state of marketing have over a period of 10 years spent much less on marketing as compared to other companies. But then in Indian real estate, they add a rider, no one is fully confident about the existence of many over-hyped companies for next 10 years.
Manoj John, VP, Corporate Planning & Strategy, RNA Corp says there are several factors that will have a combined effect in the recovery of realty market, rather than just change in the marketing strategy. Even the existing projects that would have undergone redesign & resubmissions as per the new DCR would see a revival in marketing campaigns.
“There is an emerging trend towards reworking the area formats to enhance the carpet areas, and adopting smaller areas for the conventional 1BHK, 2BHK apartments. These are measures to lower the overall ticket size, and make it a more affordable proposition. In the luxury formats, there is emergence of two trends – Branded Residences & Serviced Residences. The Branded Residences offer designer homes as per the style standards of international luxury brands; the extent of design play could include furnishings and fixtures in the house. Serviced Residences will be customized offering that include various services as add-on package like concierge, butlers, housekeeping, gourmet kitchen etc,” says John.
Easy route of brokers and underwriters also does not seem to be working with investors exit now. Requesting anonymity the marketing head of a leading real estate company admits companies wanting quick sales will always be lured into going with the channel unless a company has reached such level of credibility that sales can be achieved without a distribution network.
Brokers are an essential part of the real estate business in India, more so in North, and they would not be termed as an easy way out but rather a tool to a solution which depends on the business model a company wants to follow.
“I would not recommend that business should not have a narrow business model or strategy but have a health mix so that they have better control over all business elements. Underwriters are great way of disowning your business platform and telling the world I want to be in business but I am scared to take the risk and my concern is not the business process. I am not really wanting to be in control of my marketing or sales and hence not really bothered about the branding. Underwriting is done because you are weak and the reasons could be many- circumstantial or part of the DNA of the promoter,” he says.
Some realty observers even recommend since investor exit in any given project is a real scenario; it has to be well understood at the time of bulk sales or pre-launch offers. This scenario needs to be suitably protected against by structuring the agreements accordingly, that ensures that the investors remain invested in the property for a longer duration.
It also has a lot to do with investor confidence in long-term appreciation opportunity and the brand value of developer. It is also important to evaluate the investors to understand their investment horizon and source of funding.
Everyone seems to be unanimous that the tools used to access the customers would continually evolve depending on the changing customer psychographic profile. The most fundamental element is the product and brand promise.
Hence it is so important to create a product proposition that meets the customer requirement, in terms of specifications and price. A specific development has the potential to command customer premium if it can demonstrate value in terms of space utilization, location advantage, amenities. In case of luxury projects, the ability to create an iconic address is still the biggest draw; the lifestyle amenities is more or less given.
Well, if marketing gimmicks and festive offers are out of the business, it certainly is the sign of a fast maturing realty market. While the home buyers are getting more discerning and marketers increasingly being forced to innovate with value-for-money proposition, the year 2013 may be the beginning of a paradigm shift in the collective consciousness of all stake holders of Indian real estate.
