In The Era Of "Housing Without Speculation", Product Power Is Regaining Its Discourse Power

"I hope you can be alert and deeply aware that: the market will never return to the era when every enterprise and every project can make money; products are the ballast stone for enterprises to avoid overturning in the turbulent market sea, the engine to seize the market and the booster for rapid growth of performance." On August 8, "Boao · 21st century real estate forum" was held in Shanghai. In his speech, song Yanqing, President of Rand consulting agency, called on the industry to pay attention to products, because this is the general trend of industry development.

In view of the pillar position of the real estate industry in the national economy, and the fact that the real estate prices have been rising over the past years, the financial and investment properties of real estate have been very prominent, but its residential property has always been intentionally or unintentionally ignored.

In recent years, under the guiding ideology of "no speculation on housing and housing", a series of regulatory policies have been issued, which greatly squeezed the space for investment and speculation, and made housing gradually return to the residential property. At the same time, as the product level, the competition of the industry has gradually declined. Therefore, in the view of many practitioners, the discourse power of "products" is rising rapidly.

During the forum, Rand consulting and the 21st century industry research institute jointly released the report on the product power of China's real estate (hereinafter referred to as the report) to restore and deeply analyze the product force, and analyze the value of product power and the way to win in the current market environment.

Buyer's market and product Era

"There was a real estate enterprise that applied the standardized products to a third tier city in Shandong Province, which did not sell well. The reason is that there is a tradition in that city that parents should live in a bedroom facing south, otherwise it will be considered unfilial. The standard house type used in the project only has a south facing bedroom." This is a failed product case listed in the report of China's real estate product strength. In reality, such examples abound.

In the era of welfare housing distribution, most of the housing in China is built according to the standardization, with the same house type and single function. Since then, with the launch of the real estate market-oriented reform, the product form has been greatly improved, and some real estate enterprises have begun to establish their own product lines and product lines, but on the whole, the product quality of the industry is still unsatisfactory. Just because of the rapid rise in house prices, many buyers pay more attention to the value-added side of real estate, and have a higher tolerance of product quality.

Among them, a variety of exotic house types circulated on the Internet is an extreme performance of not paying attention to product power.

In recent years, with the supply-demand relationship across the balance point and the normalization of property market regulation, house prices bid farewell to the era of only rising but not falling. In the market, real estate developers really enter into the competition of the same topic at the product level, and the cases that affect the word-of-mouth and performance due to the product quality are common.

Song Yanqing said that the real estate market in different stages has different competition focus: the earliest is to see whose relationship is hard, you can get low-cost land, there will be congenital cost and price competitive advantage; after the popularity of land bidding, auction and listing, the competition point gradually turns to capital and operation, to see who's rotation speed is fast; in recent years, with the increasingly fierce market competition, sales more and more difficult, enterprises Industry began to practice the internal strength of products and make efforts on products.

The industry background of this situation is "whether it is the growth of the area of commercial housing to be sold, the ratio of investment to sales, or the ratio of inventory to sales, the ratio of wholesale sales, the cycle of de stocking in most cities, and even the de stocking rate and turnover rate at the enterprise level, etc. - almost every indicator shows that the real estate market has rapidly shifted from short supply to unbalanced supply and demand A buyer's market in which supply exceeds demand. "

However, song Yanqing also pointed out that, up to now, many practitioners have not realized that the market has entered the era of product competition. Even if they realize this, the method of improving product strength is also wrong. For example, it is not based on research and innovation, but plagiarism; standardization for standardization rather than innovation and differentiation.

He said that through the analysis of benchmarking real estate enterprises and benchmarking product lines, we can clearly see two sides of the current product: on the one hand, the market has indeed entered the era of product competition, and various enterprises have made efforts in products, and the industry's product strength has been improved rapidly; on the other hand, the product level of the whole industry is still not high, which means that as long as a little effort is made, it is easy to surpass More rivals, seize the market.

"Capability" of products

So, what is the product? Where is the importance of product power to a real estate enterprise?

"To put it bluntly, product is life, and the life span is decades, covering the whole life cycle, and needs include spiritual and self-worth realization." The report points out that real estate enterprises can not be responsible for the life of their customers in the end, but they should at least be life scene engineers for a certain period of time to meet the needs of customers' living, healthy life, convenient life, technological life and community life.

At the same time, real estate projects can not exist in isolation, but a part of the city and landform, so real estate products should also become a landscape of the city.

As for product power, the report points out that it includes product driving force, imagination and influence. From the perspective of real estate enterprises, product power means competitiveness, which is usually manifested as marketability and universality. "Marketable performance is that the speed of elimination is fast, and it is also fast under reasonable profits. Therefore, the two important indicators to measure the level of product strength are sales turnover rate and profit margin. "

In the past years, due to the existence of market dividends and the innovation of marketing methods, many low quality real estate products can still achieve high sales and de turnover rate. This is also known in the industry as "market cover up ability.".

The report also points out that sales are not equal to product power. "Sales are largely due to the large number of projects - large housing companies with 1000 projects are always larger than small and medium-sized Housing enterprises with only 10 projects. A large number of facts have proved that the projects of some large real estate enterprises may not be able to sell better than the small and medium-sized real estate enterprises, and the products of some small and medium-sized real estate enterprises are often better than those of large-scale real estate enterprises. "

According to the report, the real product force should have the ability to go through the cycle, otherwise it is easy to cause the sales performance to fluctuate greatly due to market changes. "Some rapid expansion of 100 billion real estate enterprises have appeared this situation, some are still very serious."

How to build product force through cycle? Secondly, it points out that the main purpose of "product innovation" is to continuously improve the products (i.e., to continuously improve the products) rather than to constantly improve the products.

Four trends of residential products

From the perspective of real estate enterprises, improving product power is not a simple thing. The report points out that product power is the embodiment of system capability.

The competitiveness and attractiveness of products in the market (front desk) are actually the embodiment of the system capabilities of the backstage and the middle stage. "Improving product strength is never a matter for a department of R & D and design, but involves multiple lines such as cost, marketing, operation and engineering. Therefore, in order to improve the product capability, systematic improvement should be made in the aspects of mechanism guidance, assessment, organization, management grid, cooperative resources, design, etc. Only in this way can we make the product force the unified language of the enterprise. "

Song Yanqing pointed out that on the basis of mobilizing various systems, for enterprises, the two major grasp points to improve product strength are: product innovation and product line research and development.

So, what will the mainstream real estate products look like in the future? What kind of products can win the market?

In terms of product structure, the report judges that in the future, the proportion of residential sales will slowly increase, and it may break through 90% by 2025; among the commercial residential products, the proportion of just in need improved housing will further increase, and the total proportion may exceed 90% by 2025; high end residential and luxury housing products will change from up to down, but the product structure of cities with different energy levels will continue to differentiate.

As far as residential products are concerned, the report said that in addition to the obvious features of technology, refinement and standardization, there are new rigid needs and new improvements in customer cognition, design concept, building type, functional performance and other aspects, which are the best-selling products.

Specifically speaking, there will be four trends in the future of residential products

1. Just need to upgrade. In view of the poor quality of the traditional rigid demand, it has been difficult to meet the needs of the post-90s and post-00s. The new rigid demand housing will not only increase the area (two rooms in the first and second tier cities is the starting point, and the second tier cities with 2 + 1 housing is the starting point), and the living facilities, housing performance and precision work quality will be further upgraded. Otherwise, it is likely to fall into a price war and even become unsalable.

2. Improvement will reduce dimension. The market has entered the era of house exchange. However, with the gradual increase of the household set ratio, the replacement area will not increase, but will be further refined. Although it can improve the performance and the area, it can also improve the performance. Of course, affected by the price limit, the quality of hardcover may decline.

3. Due to the scarcity of land and high land price, the products of the first and second tier cities are more and more innovative. It is the future choice for all-round cities and full structure product layout real estate enterprises to reduce the dimension of innovative products in the first and second tier cities and turn them into standardized products in third, fourth and fifth tier cities.

4. In the long run, the product gap of cities with different energy levels will narrow, and the area difference between rigid demand and improved housing will be further narrowed. Three room housing will become the largest product in the market, but product convergence will be the future trend.

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