Chinese Real Estate Giant Emerges Through Effective Strategies

BEIJING -

CRIC (China) Information Technology Co., Ltd., China’s largest integrated information services provider for the real estate sector, in cooperation with China Real Estate Appraisal, released the “Sales Rankings of Chinese Real Estate Companies for Q3 2009″ on Oct 9. Evergrande Real Estate, the “dark horse” of the Chinese real estate sector, won five titles in the report. According to insiders, strong results demonstrated the property developer’s strategy record over the last decade or so. Meanwhile, the Chinese real estate sector enters a strategy competition age. Sina Leju was the first media source to announce the release of this report, part of which is as follows.

Analysis by insiders pointed out that Evergrande started with nothing relatively recently, so it adopted the overall development strategy of “first big, then strong,” and clearly divided its development into three stages. The company would adopt different development models and strategies at different development stages. Evergrande has now successfully emerged from the start-up period of “winning on scale,” and has turned to the “scale plus brand” strategy.

During the start-up period, Evergrande used six to eight years to implement its development strategy model of “winning on scale.” During this period Evergrande focused on developing mid- to low-priced properties, becoming a top 10 real estate company in Guangzhou.

Since 2004, Evergrande has turned to the “scale plus brand” model. During the period, the developer completed the mid- and long-term reserves of talents, land and capital. It increased its workforce to over 2,000, completed effective information of tens of thousands of land projects and attracted top international investment institutions, such as Merrill Lynch, Deutsche Bank, Temasek and Chow Tai Fook, to purchase shares in it.

After 2007, Evergrande began to implement the “scale plus brand” development strategy. It jointly developed over 40 projects across the country in more than 20 cities, occupying the industry’s first place in terms of the area under construction, and becoming the largest land holder in the Chinese property market with land reserves of 51 million square meters.

Some experts concluded Evergrande’s major competitive advantages lay in seven areas, among which, the most important one is that the company has been focusing on becoming the leader in the standardized operation of selected properties in China. During the process of expansion across the country, the company has formed the operation model of implementing tight collective management in its headquarters, and implementing standardized operations in regional offices across the country.

Many developers can build one or more projects in the same region, but aren’t able to properly arrange the overall project layout across the country. Evergrande successfully achieved this unified stance. Experts pointed out that unlike other real estate developers, Evergrande fully implemented the standard and the strategy of selected projects during the development processes of all projects, including high-end products, mid-end products and tourism properties. The group cooperated with domestic and foreign real estate-related industry giants to form complete management systems through large-scale resource integration.

As the CRIC (China) report said, private enterprises, represented by Evergrande, are challenging traditional public enterprises through the rapid expansion of market share. Evergrande highlighted its position as an industry leader with strong results.

For more information, please contact: Kevin Fax: +86-10-5895-1005 Email: Kevinmts@sina.com

Source: Sina Leju

Kevin, +86-10-5895-1005 (Fax), or Kevinmts at sina.com