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property

Sansiri plans aggressive marketing push abroad


LISTED PROPERTY firm Sansiri plans to open two new sales offices in China – in Shenzhen and Guangzhou – and expand into Japan and the Middle East, especially Dubai, to drive the value of purchases from foreign buyers to Bt7.5 billion this year.

Currently, the company has two sales offices overseas, in Beijing and Shanghai. 
“We have an aggressive marketing policy to drive our sales from foreigners interested in expanding their investment or staying in Thailand. We recorded sales to foreign buyers worth Bt5.4 billion in 2016,” Sansiri president Srettha Thavisin said in a recent interview with The Nation.
He said the company started to boost its sales to foreign buyers three years ago after setting up a joint-venture firm with BTS Group Holdings. The JV company developed condominium projects and marketed them to potential buyers in Hong Kong, Singapore, Taiwan, Beijing and Shanghai, successfully recording Bt1.2 billion in sales in 2014. 
The company then aggressively promoted its products and brand in Hong Kong, Singapore, Taiwan and mainland China, improving its overseas sales value to Bt3.5 billion in 2015 and Bt5.4 billion last year.
Building on this initial success, Sansiri will expand its overseas market to Japan, the Middle East especially Dubai, and other cities in China, especially Shenzhen and Guangzhou, this year. 
Srettha said China had high potential for Sansiri’s overseas expansion as demand to buy residential properties for investment in Thailand, both in Bangkok and tourist destinations outside the capital, was still strong. 
Sansiri set up an international marketing department in 2014 that now has 25 staff to support its business expansion outside Thailand. 
The woman in charge of this department, Sansiri deputy vice president Pitchakorn Meesak, said up to 80 per cent of the foreigners who made purchases in the company’s residential projects were investors who rented out the homes to generate an annual return on investment of 5-8 per cent. 
“We tell our customers that we are an integrated property firm. When investors buy in our residential projects, we suggest that they contact our subsidiary Plus Property Co when they need an agency to manage their assets. This is one of the keys to our success from selling our residential projects to investors overseas,” she said. 
She added that the popular products for foreign investors were condominiums located near the mass-transit system and priced between Bt5 million and Bt10 million per unit. They prefer condos of at least 30 square metres.
In value terms, up to 55 per cent of Sansiri’s sales to foreign buyers last year were in mainland China, followed by Hong Kong, Singapore and Taiwan. 
This year, the company targets sales to mainland Chinese buyers to account for more than 60 per cent of its total foreign-market sales value of Bt7.5 billion, followed by Hong Kong, Singapore, Taiwan, Japan and the Middle East.
“We have continued to build our products’ brand overseas by collaborating with local partners such as shopping frim, … commercial banks,” he Srettha said.
He added that the company had continued to develop its condominiums in collaboration with global designer brands. Its luxury Khun by Yoo condominium project in Bangkok’s Thong Lor area used the services of Yoo Design Studio by Philippe Starck. 
“Our collaboration with global designer brands, our own brand, and our after-sales service are the keys to our success in boosting our sales in overseas markets, which is the new market segment that will drive our total sales value to target this year,” Srettha said.
This year, Sansiri targets total presales if Bt36 billion, up to Bt7.5 billion of which will come from overseas customers, and total revenue of Bt34 billion.
 

Published : February 05, 2017

By : SOMLUCK SRIMALEE THE NATION