Selling The Same as Selling Cabbage Housing: Part 2

Low-cost low-price strategy

Country Garden has built up its fortune in Shunde, but its growth is inseparable from Guangzhou. The small size has been a quietly sneaked into the Shunde Country Garden in Guangzhou, has just begun not publicity, not advertising, 70 floor, starting at the same time build, operate hundreds cable car at the same time, like Pipeline, Country Garden production of goods used to build houses the way . 2000 Spring Festival, the Guangzhou Country Garden opened, the long-awaited Country Garden opened mystery. Its per square meter over 3,000 yuan in average price of detached houses launched bring their own gardens, or even the price of rough than the same lot also cheaper, ultra-low price the industry felt the tremendous impact and shock, and create more than two months after sales miracle. Wang Zhigang this is a very vivid metaphor: "like an elephant enter porcelain shop."

Real estate development in the chain, Country Garden personally played almost all industries on the downstream all the roles. Design, construction, decoration, or even once has his own battlefield, their own cement plant, and even the bricks are their own production. This is to ensure that the group can develop long-term chain earned a profit in each. Country Garden specialized in developing low-density residential, to the villa and its products mainly multi-storey detached house. Experience with the development of the people know, villas and high-rise residential construction costs, compared to urban residential high-rise elevator, its low cost a lot. Generally, the high-rise building in Guangzhou in the construction cost per square meter 2,000 yuan from top to bottom, in the multi-storey residential per square meter 1,000 yuan from top to bottom, and villas, often due to gross embryo standard delivery of the premises, sometimes less than its construction cost per square foot m 500 yuan.

Given the various cost control, Country Garden market can be imagined than to the low price shocks market, and win market. In 2001, Country Garden Phoenix projects open for sale, although the sale from Guangzhou urban nearly one-hour drive, but because Country Garden "cheap" slogan sell villas, the "500,000 yuan can live villa "The slogan for many customers have purchased. Opening day, "just like the same seller, selling cabbage," so that Zengcheng Phoenix Country Garden project has created within one day. Sales 750 million yuan in sales myth, the record so far no developers can break.

Source: 第一财经日报 Zhang Yanhong Apr. 4, 2007

Link:
Selling The Same as Selling Cabbage Housing: Part 1
Selling The Same as Selling Cabbage Housing: Part 2