PD HOUSE views 1st quarter of 2017 is vigorous but highly compete in price because purchasing power starts to recover and a lot of new entrepreneurs enter the market. Big and small companies and contractors flock over 2-3 million baht house and make the competition hot. PD House boasted they got 36 energy saving house awards and take into account together with giveaway promotion to get 300 m. sale for 1st quarter. This year PD upgrade franchise system both quality and service. If any franchisees fail to meet standard or break the agreement and disloyal to consumers, they will be dropped out. It is believe that franchise system is the good tool to recruit and sort out the disloyal ones.
Mr.Pisan Thammawiset, the manager PD House International Co., Ltd or PD House Home Builder Center disclosed that the overall image of home builder market in Thailand in the past three month (Jan-Mar.) of the year 2017, thought vigorous in the last quarter of the past year, tended to compete in price. This is for the most builders, big and small companies and contractors, especially in Bangkok and perimeter. Meanwhile, home builder market upcountry, especially in the major cities in the northeast such as Nakhon Ratchasima, Khon Kaen, Udon Thani, Ubon Ratchathani etc. There are many entrepreneurs enter the competition in home builder market this year. This makes the competition in home builder market heated.
“The cost of the construction for the moderate quality to high quality house for the leading builder companies is around this year is about 15,000 baht to 30,000 baht (living area 100 sq.. up) depends on the design materials and pre and post sale service. These are major factors the builders used to attract the consumers. The small companies or contractors flock over low end market or customers who pay less attention on design and material use and accountability of the builders. The average cost of construction is about 12,000 baht up. By the end of the 1st quarter of 2017, some of the leading builder companies compete with the small companies for the low end market. This makes the temperature of the competition heated.”
For PD House, the strategy used in marketing is the outstanding leader in energy saving house. In the year 2016,the company got 10 awards for energy saving house from Department of Substitute Energy and Energy Conservation, Ministry of Energy. Totally, they have got 36 awards from 4 competitions and is counted the most awarded company in the country. However, the high competition situation of builder market which allows the consumers to have a high negotiation power, the company has to hold sale promotion activities both discount and giveaway and boost the outstanding strength of energy saving to close the sale amount at 300 baht of the 1st quarter of this year.
Mr.Pisan also added that the trend of the competition in the 2nd quarter of this year will still be on the price and the high competition will be in Bangkok and perimeter. The builders may take risk if the construction materials price increase in the second half of the year. For Pd, after paid attention on Bangkok market in the first quarter and reached the sales target, we will push on northeastern market in the second quarter through event marketing. The events will be held in the shopping mall or modern trade center and join the Home and Construction Materials Fair held by Thai Home Builder Association in Ubon Ratchathani. The company has assessed that the purchasing power of the consumers in the region is recovered and most of PD House offices are in this region. This will provide conveniences for customers to access the builders and to awake the home builder market to be vigorous once again. The company expects the 250-280 sales amount for the second quarter, Mr.Pisan concluded.