source:Nanfang Daily

Standardized quality strategy becomes increasingly matured and one billion profit is offered for the “cost price”

News, this paper Sales at “cost prices” in a few Chinese cities has become a highly representative marketing masterpiece of Evergrande Real Estate in 2009. Following the sales of 10 billion yuan in the first half year and one-day sales of 1 billion yuan at the recent “Summer House Purchase Festival”, Evergrande will put 10,000 flats of 31 complexes into market to “rush for the sales during October 1 golden week” in 16 cities in September.
        It is noteworthy that this time Evergrande will not only sell a rich source of various products, but also continue its tradition of “every opening definitely offers special price, special price definitely leads to value increase” so that national profit offer will reach 1 billion yuan. Among them, Guangdong Evergrande Oasis, Evergrande Riverside Capital, Evergrande Teana Lake and Evergrande Collar Villa in Guangdong are sold 15% off, so Evergrande’s masterpiece strategy of “actual-view garden + to-be-delivered building + fine decoration” comprehensive emerges.

10,000 flats are to be sold in 16 cities, which shocks the market
        As “golden September and silvery October” draws nears as a traditional saleable season for the real estate market, the major developers have stepped up to introduce new products to stimulate the market, and Evergrande Real Estate which has developed in 16 cities is doubtless one of the real estate enterprises with the most abundant supplies. This year, Evergrande project is sold in primary and secondary domestic markets one after another, injecting new blood into the national market, which also marks Evergrande has fully entered the harvest period in terms of national materspieces.
        It is learned that Evergrande will sell 31 projects in Guangzhou, Kunming, Changsha, Nanjing, Xi’an, Chongqing, Chengdu, Tianjin, Taiyuan, Wuhan, Hefei, Shenyang, Baotou, Luoyang, Guiyang and other key cities in September. The product type covers a wide range, including medium-end products suitable for ordinary consumers, vacation and resort products for the second purchasers and urban luxury houses with a large area; the product variety includes detached house, semi-detached houses, townhouses, garden houses, multi-rises, small high-rises, medium high-rises and high-rises; the unit size ranges from tens to hundreds of square meters, so a wealth of products will meet different market needs to the maximum extent.
        According to reports, Evergrande will sell 10,000 flats in advance for the purpose of continuing to expand its market share and prepare for the “Golden Week” property market. As in Guangdong Province, Evergrande will launch Guangzhou Evergrande oasis, Evergrande Riverside Capital, Evergrande Teana Lake and Evergrande Collar Villa, 4 projects in total. These four projects cover high-end luxury riverview flats, landscape products for the second purchasers and tourist and resort projects.
        For instance, Evergrande Oasis located at the foot of Jinshazhou Bridge has wonderful riverview and 360-degree landscape and adjoins Metro 6 and expressways and other three-dimensional road networks as a luxury complex. The products of this complex cover 11-storey elegant three-bedroom flats with an area of 82-182 square meters, small high-rises with an area of 225-271 square meters and high-rises with an area of 185-410 square meters, and all are provided with independent stairs for a single family. Its Phase I is expected to be sold at 15% off during the “Golden Week”.

Real opening marks the standardized masterpiece strategy becomes mature
         It is worth mentioning that though Evergrande will launch up to 31 major complexes, including nearly 10,000 flats, all of them have achieved the sales requirements of “actual-view garden + to-be-delivered building + fine decoration” without exception, which not only reflects Evergrande’s stringent requirements for project quality and makes buyers “rest assured”, but also reflects the corporate governance vision of Xu Jiayin, Chairman of the Board of Directors of Evergrande Real Estate Group, to make Evergrande “a standardized operation enterprise”.
         Evergrande’s standardization prominently reflects the sale of each new complex must satisfy the stringent requirements of “actual-view garden + to-be-delivered building + fine decoration “The reporter finds on Guangzhou Evergrande Oasis to be on sale that the European royal architectural style sports center will soon be topped off and so will all kinds of Western-style houses, small high-rise houses and high-rise houses, and the royal garden has taken shape.
         In addition, Evergrande advocates “international 9A fine decoration system” pioneering in the national real estate industry. The reporter sees from Evergrande’s form of fine decoration house delivery that even the materials from Daikin, Moen, Siemens, TOTO and other international top brands will be presented when the houses are delivered. The construction technologies also reach the designated requirement. Each piece of stone material is numbered when dispatched from the factory. The stones are spliced together according to the numbers in on-site construction with complicated process, in order to guarantee that they fit together perfectly. It is reported that based on more than 6,000 standards for competitive construction of Evergrande, a system conforming to the fine work strategy of Evergrande has been comprehensively implemented and used as guidance for house decoration in various parts of the country.
         The marketing head of Evergrande said the 31 new complexes to be sold by Evergrande in September would all take the sales mode of actual-view garden, to-be-delivered building and fine decoration in order to offer assurance and confidence to buyers. In 2009, Evergrande continues to follow the strategy of “fine work”, and makes the sale strategy of “actual-view garden + to-be-delivered building + fine decoration” the label that can “set the house buyers’ mind at rest” to some extent.
         For Evergrande’s sale requirements of “ actual-view garden + to-be-delivered building + fine decoration”, the industry insider commented, “In general, project gardens are slowly improved after preliminary fund is withdrawn. And it’s hard to act like Evergrande to largely make gardens before opening because in case of no capital assurance or strong brand support. It is generally difficult for developers to do so”.
         At present, Evergrande has already successfully duplicated “masterpiece-oriented”, “standardized” and “scale-based” development modes to the national projects, and Evergrande’s products have established an image of high-quality products in the cities they have entered, and won the identity of a large number of house buyers with Evergrande brand. Insiders said that Evergrande’s national standardized development, marketing and management mode had matured, which has put pressure on other developers in the cities it has entered. Together with Evergrande’s unique “ every opening definitely offers special price”, it will be difficult for its opponents to shake its strong competitive position.

A profit offer of one billion yuan highlights the cost-effectiveness of the products
         Why can Evergrande’s each opening always lead to such a warm market response? Industry experts said the main reason was that Evergrande adopted the opening marketing strategy of “every opening definitely offers special price, special price definitely leads to value increase”. The strategy of “every opening definitely offers special price, special price definitely leads to value increase” has become a highly distinctive identity of Evergrande. This strategy has also become a classic marketing case of “good start” in the property market and even the essence of the Group’s marketing strategy.  This time, Evergrande will offer a profit of one billion, which explains the essence of the opening at cost prices.
         “There is no house that cannot be sold out, there is only unacceptable price”. When interviewed by media reporters, Xu Jiayin, Chairman of the Board of Directors of Evergrande, always says so surely.
         In fact, precisely because of always adhering to the pricing strategy of “giving benefits to the people,” Evergrande gradually comes to the fore in the fierce market competition. Since last “October 1 Golden Week”, Evergrande has often made wonderful achievements at a few critical nodes, and its sales in July and August were wholly hot. In off-season August when national real estate transactions were called back, Evergrande chose to conduct a massive “Summer House Purchase Festival” across China against the situation. In particular on August 23, the sales of Chongqing project, including 709 flats, reached 560 million yuan on its opening day, the sales of Baotou Evergrande Palace, including 256 flats, reached 350 million yuan, and the Group’s total sales of 1,129 flats across the country reached 1.01776 billion yuan.
         Evergrande’s marketing strategy of discount for opening has become a classic marketing case of “good start” in the property market. The strategy of “every opening definitely offers special price, special price definitely leads to value increase” has become a highly distinctive identity of Evergrande. This strategy has also become a classic marketing case of “good start” in the property market and even the essence of the Group’s marketing strategy. This time, Evergrande will still follow the sales strategy of “ every opening definitely offers special price, special price definitely leads to value increase “ for 31 national complexes and sell them at 15% off on the project opening day. According to the performance of Evergrande in recent years, the marketing mode of “special prices at the opening for sale and value increase from special prices” of Evergrande has brought substantial benefits to buyers, and also helped Evergrande in its constant market expansion.
          Industry experts analyze and believe that now the demand in the property market has been unprecedentedly released, so all developers are faced with new opportunities and challenges and only those building affordable housing for consumers will become more and more popular among consumers. Evergrande has consistently pursued a strategic combination of masterpiece strategy and low-price and high-sales mode, which effectively enhances the cost-effectiveness of the products and becomes a unique market skill, so it is also certain that its products are popular.
          Compete with high quality, and the high cost performance ratio wins. Various signs have indicated that Evergrande will continue to speed up the paces for taking the lead in the national real estate market in the coming “Golden September and Silver October”.

Reporter of this paper   Wang Hao