The Profile of China’s Real Estate Industry and Vanke’s Brand Strategy

By Mr. Wang Shi

Chairman of Shenzhen Vanke Co. Ltd.

On Oct. 11, Mr. Wang Shi, Chairman of Shenzhen Vanke Co. Ltd, delivered a speech entitled The Profile of China’s Real Estate Industry and Vanke’s Brand Strategy at CEIBS’ Executive Forum.

To begin with his speech, Mr. Wang introduced the existing problems facing the Chinese real estate industry and its future trends. In his view, the real estate industry of China is still in its primary stage, during which consumers’ basic housing needs were not fully satisfied. The potential buyers value the functionality of housing property most. Under this circumstance, real estate developers need to guarantee the security of investment. What consumers count on real estate developers remains to be confined in their creditability and property management, yet neglecting other underlying values that they may add. However, as the industry develops and people’s living standard rises, consumers will focus more on the added value of products, like the potential of appreciation in property value. This trend will undoubtedly pose a more demanding challenge to branding in real estate.

Then Mr. Wang went on to analyze the current branding profile of Chinese real estate industry. Since in China the real estate industry is still in primary stage, brand awareness has not been fully developed. Many brands may win considerable fame during a short period, but few can sustain its leadership for long. He argues that the obvious geographical features in Chinese real estate development explain why domestic real estate industry lacks influential brands. Moreover, some developers do not identify a strategic objective before they diverse into other businesses. This blind move would only have a negative impact on their core business and its brand image among consumers.

He pointed out that currently Chinese real estate developers do not have an adequate understanding of the significance of brand building. In general, there is no coherent branding strategy or brand identity system. Effective branding infrastructure and system has not been established yet. All these constrain the development of brand strategy in real estate sector.

In addition, Mr. Wang briefed on the development stages of Vanke and its branding strategy. He revealed that Vanke is now embarking on an all-round reform in its brand strategy and corporate identity system. Next year, Vanke will launch a large-scale brand campaign nationwide.