Now the project positioning must learn how to make money from rich people
And many times only by making money from rich people can there be a way out
A real front-line trader must know what I'm talking about at this moment
It's not a dotted feeling
When countless traders say the same thing as me, I think maybe the market is changing again
For many companies that are still trading, it is no longer an option to continue to do project development in the city and do high-end
Rather, it is a must
Nowadays, in addition to positioning high-end real estate and getting out of the cracks in the property market, there doesn't seem to be much choice
That doesn't seem to make sense
But it is the real experience of the market for countless practitioners
01
It is said that the positioning of the project determines the fate of the real estate
But for the city, there are not too many opportunities for each real estate to do positioning
No matter which city, even the third-tier prefecture-level cities we have visited, the total demand in the rigid demand market has shrunk particularly sharply
There is almost no capacity for systematic decentralization
Moreover, the total number of units in many projects is too large due to the small size of the house, and the continuous development of the project will encounter problems
When the market demand is insufficient, this part of the housing may not be able to complete the removal by reducing the price
And the other side
Improvement is the most turbulent and stable demand side of the market, but the development of improvement projects is now facing the dilemma of no profit
The cost of land and the market price are now fully transparent
In addition, the supply side of the improvement class has entered the track of volume in the past two years, and the overall investment is increasing
And if you can't roll others, the losses caused by subsequent price reductions will be even greater
This means that the margins of almost every improvement project are as thin as a blade
However, if the de-conversion cycle does not catch up, the overall financial cost is added, and the selling loss is in an instant
So now in the market, it seems that only by doing high-end positioning, and unswervingly doing high-end from the beginning stage, to do the business of the rich, it is possible to achieve the project premium
I'm not sure, but there's only one option left
The implication is that if you don't choose, there is no way out
If you choose, there is a certain possibility
There aren't many options as a practitioner either
In addition, at the rational level, it seems to support such a "risk-taking"
For high-end luxury residential products, the development of the property market in the past 20 years belongs to the stage of suppressed supply
The living needs of most of the spire customers are not met
And their overall ability to pay is stronger, and they are not so sensitive to the unit price and the total price, if they can really cut into this track, they can indeed achieve the double guarantee of speed and profit
But it also dictates that developers need to have the ability to develop luxury homes
Only by doing continuous development in this category can it be possible to achieve a virtuous circle on the marketing side
02
This strategy can be seen and known by all traders at the end, but it is becoming more and more difficult to cut into the high-end
One of the most straightforward changes is
Now it is useless to make luxury houses, simply pile up materials and throw money
In the past luxury housing customer system, as long as the interior was delivered to all imported brands, the community façade was given marble, and the community was made with some water features and clubs
This is a proper mansion
However, this kind of product power improvement achieved by simply throwing money at it is no longer effective
Here's what two factors work together to determine what happens
First, the road to improve products is actually a variety of heap configurations, in the past we thought that high-end customers only have the product power, now has become the standard in the improvement of customers
Second, for the real spire customers, they have owned luxury homes made of stockpiles for the past 20 years
Now, although he doesn't mind changing or buying an extra one, he doesn't want to buy a house with the same temperament as before
Because of this, how to make luxury homes has become a thorny problem for developers
It seems that everyone can do it, but they can't do it
Including many luxury houses, simply throwing money at the end is counterproductive
What is even more frightening is that today's wealthy purchasing power even shows resistance to standardization
This year, Jin Mao proposed a product line called Pu Series, a product line that is nominally above Jin Mao Mansion
It stands to reason that Jin Mao Mansion has been making luxury houses for so many years, why do you want to make another one that is a left-hand game within the company
Because in essence, the luxury houses incubated in the last era of standardization are behind the standardization project
And this is no longer satisfied with the spire customers
It is necessary to start doing non-standard, high-end, and differentiation again in order to activate the purchasing power of customers
In the future, the customers of standardized luxury housing products such as Jin Mao Mansion will be more concentrated in the light luxury customers who are young or buying luxury houses for the first time
What this means
This incident means that now in the high-end market, it may be that all developers have returned to the same running line, and started to reconquer the market together to arouse the curiosity and attention of users
03
Why is that
Countless traders have given me a feedback: the rich people nowadays have seen the world, understand the product, and are much more powerful than we imagined
I just came back from Ningbo and Chengdu this week, and a person in charge exaggerated and told me: there is an owner who has put forward various opinions on our products since the sales office, including façade materials, garden trees and lobby sculptures
This puts a lot of pressure on the developer's R&D team
Not only do the current owners understand the product, they also know how to disseminate it
If it is not done well, it will ferment in the intended customer group
Rich people do this, and if everyone sees that the developer's attitude is not sincere or that the project is not done well, they will immediately turn around and go to other real estate projects
After all, there are so many options for them right now
And we joke that there are no upstarts at this time, and all the purchasing power that is still active in the market is old money
And for the old money, they have all gone through the cycle
Of course, they are more concerned about the residential attributes of the house, and the weight they can enjoy is getting higher and higher
Now it is long past the time for them to buy a house to show their status, and it is more to please themselves and make themselves comfortable
So there can be no little perfunctory and insincere in the product stage
Rich people buy a house at this time more to obtain a kind of emotional value, they hope that at this time either not to buy, but must buy a different set
But on the other hand, once the product has done what they want, the de-chemical power here is amazing
In the past two days, I chatted with Luhu's friends and said that Luhu has monopolized more than 20 million purchasing power customers in Chengdu
Almost all the customers who reached this net worth only bought Luhu Lake in Chengdu
And the bigger the house, the more expensive the house, the more people will rob it
This is the surging purchasing power of the spire customer group after agreeing with a product
04
So now who can still earn money from rich people
In fact, there are only two categories of projects, and the purchasing power of the spire will be very recognized
One is the opportunity for the head snake
It is very easy to get some core scarce land at this moment (or it may be forced)
And more importantly, these projects are often personally responsible for by the boss
In the past, many people joked that the house that the boss would buy himself must be a good house
Now it may be the house made by the boss himself that is likely to meet the needs of the spire users
Under the will of the boss, he is often able to make a good project at this time, or a real non-standard project
And it is the easiest to be resolutely implemented when the product is in place, regardless of the cost and the market
Maybe only the boss has this energy
This is also a very important reason why customers now want to buy those houses of the Snake brand
What about the opportunities for mainstream real estate companies
Now there are still opportunities for mainstream real estate companies to do high-end, and the breakthrough lies in the mainstream developers being able to integrate the best designers on the market
We say that no one wants the project of piling up materials now
However, the community that piles up ideas, piles up ideas, stacks ideas, and piles up wisdom has been greatly recognized by the market
Therefore, now that large manufacturers want to cut into the high-end, they must not feel distressed about the two investments
The first is to find a really good enough design company to do the design
It is best to have a good enough design team to do research and development in each small link, and the products that come out must be different
The second is to find a really good content team to do project interpretation
Only by systematically expressing the R&D concepts and values behind the community can it resonate enough in the orientation circle
So in 2024, I see two trends in the whole real estate development line
The first is that the party B institutions that have been doing high-end for a long time are getting busier and busier
Behind this is that some people see the systematic output achieved by a single input
Another trend is that real estate companies that have done well have the opportunity to reshape their brand perception in this era
Some of the large manufacturers we know now are in the hearts of everyone in the past, and if they are just needed, the current brand premium power is getting worse and worse
On the contrary, some real estate companies that do not pursue scale have made good business and good reputation by relying on individual cases
Although it is helpless to do high-end, doing a good job in high-end also brings the second curve in the enterprise
05
The property market is getting harder and harder, and all traders now have to learn how to make a rich man's business
The same is true for the industry as a whole
To some extent, the sluggish overall demand does need to allow the rich to buy a good enough house to be able to detonate the property market in a dot shape, so as to give the market some confidence
And when the focus of this type of customer group is on the residence itself and corporate values
The overall positioning of many real estate projects seems to be worth redoing
This is an irreversible era
The development of the property market itself will inevitably become a way for the rich to buy luxury houses, for the middle class to get the involution community, and for the rigid needs to buy flat loans
In this way, the entire market demand can run in a virtuous circle again
So, do a good job of the project, and show it to me and the rich people when it's done
All real estate practitioners
Will your project make rich people's money
Do you have any other tricks to make money for rich people?
The above is the text, from the real name Lu Jun
This is the 5382nd original article of the real Lu Jun public account