ricki osterthun presentation 26.11.2009
DESCRIPTION
RICKI OSTERTHUN (Head of Finance - Engel & Völkers Resort) presentation about the potential and requirements of the German market (VIVA IN PORTUGAL's Residential Tourism Conference)TRANSCRIPT
1
www.engelvoelkers.com/resorts
The potential and requirements
of the German speaking markets
2
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketReasons for an investment
InvestmentInvestment
Investment / Private UseInvestment / Private Use
Private UsePrivate Use
3
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketFavourite destinations for an investment
Europe
• Spain
• Italy
• Portugal
• France
• Greece
• Germany
Worldwide
• USA
• South Africa
• Dubai
4
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketPurchase decision criteria for an investment
Macro• Family• Country – Accessibility • Language• Medical Support• Weather • Costs • Interest of Family• Service Concept• Political circumstances• Security• Utilisation
5
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketPurchase decision criteria for an investment
Micro• Decision of the family• Additional costs• Size of the property• Fitting• Daily routine• Accessibility - Airport• Accessibility - Infrastructure• Security within the property• Service und Maintenance• Contracts• Furniture
6
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketRequirements demanded by German-speaking customers
Real estate:
§ Views, open view, at best water view and landscape
§ Clear floor plan / layout, not too intertwined, rooms not too small
§ Parking space in building, short walk from parking space to apartment
§ Private sphere through sufficiently large balconies and terraces hidden from view
§ Pool
§ Small communal facilities for owners
§ Ceiling height
§ Windows down to the ground
§ Bathrooms with windows
7
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketRequirements demanded by German-speaking customers
Quality:
§ Brand manufacturers
§ Technology of the highest level
§ High-quality material
§ High-quality kitchens, bathrooms and fittings
§ High-quality doors and windows
§ Very good finish
8
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketRequirements demanded by German-speaking customers
Infrastructure:
§ Excellent infrastructure within the project and to the airport
§ Distance from sea and beach
§ Shopping possibilities for daily requirements
§ Restaurants
§ Leisure time facilities (indoor and outdoor)
§ Distance to the next towns
9
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketRequirements demanded by German-speaking customers
Security/Service concept:
§ Comprehensive offer for real estate but also other services
§ Comprehensive Service concept
§ Transfer, catering, laundry (clothing)
§ Preliminary set up for alarm system
§ Intercom system
§ Cameras
§ Caretaker
§ Concierge Concept
§ Comprehensive Spa and Wellness supply
§ Shopping area
§ High quality restaurants
§ Good medical Supply
10
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketMarket performance and future development
§ We are in times of a financial crisis and investors are very risk averse
§ The international markets have changed dramatically
§ Supply: Secondary homes – a former supply-driven market
§ Hundreds of developments neglecting architecture, service, maintenance and above all the unique selling prepositions in a highly competitive surrounding were built in the past decade resulting in overcapacities
§ Demand: Different customers with different needs
§ Especially UK as a former strong buyers market suffered
§ The currency parities devalued all assets and banks do not grant more than 70% mortgage loan to value for the buyer.
§ Market transparency: Customers have access to a vast range of information through the internet.
§ Usage intention has changed: A growing majority of customers use the property themselves, looking for uniqueness, high quality and a profitable return on investment.
§ The German speaking markets are stable and strong, increasing demand in tangible assets
§ Large aim group with strong purchasing power and adequate capital assets in the German speaking markets
§ In 2008, E&V had a total transaction volume in real estate of approx. 5 billion EUR and a brand commission turnover of 146.5 million EUR
§ Until 06/2009 E&V Residential Germany had a turnover performance of plus 15% compared to 2008
11
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSuccessful marketing and customer communication
The German customer highly quality sensitive, with strong safety needs and high expectations towards all
contractors.
• Travel arrangements for customer
• Site visit program
• Highly qualified sales personal
Customer approach and lead generation
Information and customer contact Site visits Sales and after sales
services
Customer communication and service process Customer moves in
• Ad campaigns
• Online/ Internet
• Direct marketing
• Events
• Brochures
• Facts & Figures
• Exposés
• Building descriptions
• Contract management
• Financing consultancy
• Consultancy and support concerning construction and furnishing
12
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSuccessful marketing and customer communication
Customer approach and lead generation – marketing tools in the German
speaking markets
Advertisements are the most effective measurements to target the market -Requirements:
§ Large formats (i.e. Double DIN A4/ ½ page)§ In representative media
§ i.e. Welt/ Welt am Sonntag Style: Daily national newspaper/ WamS every SundayCirculation: Welt: 280.387 / WamS: 402.069 (Reach Combination
1,2 Mio.)§ i.e. FAZ/ FAS
Style: Daily national newspaper/ FAS every SundayCirculation: 362.396/ FAS 336.513 (Reach: FAZ/ FAS: 1.6 mio.
readers in Germany/ worldwide)
§ High quality lifestyle images
Product quality, reliability and positioningStrong tool for lead generation
13
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSuccessful marketing and customer communication
Toscana Resort Castelfalfi
Double page,
Welt/ WamS, June 16th 2009
14
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSuccessful marketing and customer communication
Customer approach and lead generation – marketing tools in the
German speaking markets
Online measurements
§ Internet presentation (homepages)§ Internet exposés
Results:
§ Media usage in Germany is still very print focused§ Online marketing is important and a growing instrument
For the main target groups online marketing is not effective and efficient.
Source: Media Focus Werbedruckstatistik, 06/2008
15
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSuccessful marketing and customer communication
Customer approach and lead generation – information and sales material for the German speaking markets
High quality brochures – Content:§ Region and location, surrounding/views§ Amenities, service, maintenance and security § Specifications, layouts and master plan § Information about the developer
Facts & Figures, Building description
§ Detailed information about the project§ Detailed information about the architecture§ Detailed information about tax and legal requirements§ Product characteristics in detail
Exposés – Individual Offers according to the customers needs
16
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSuccessful marketing and customer communication
The German customer has high expectations concerning a site visit of the project.
Tasks/ requirements in the customer service process:
§ Travel arrangements for customer
§ Highly qualified sales personal
§ Site visit program
§ The host takes full care of the customer from the arrival to the departure.
§ The journey will be planned for the customer; he will be given an itinerary incl. sightseeing. (recommendation 2 days).
§ The customer will be welcomed at the airport and taken to the hotel (incl. welcome package).
§ A detailed discussion will take place with a subsequent viewing of the showrooms. Special apartments will be selected before the inspection, depending on the wishes and requirements of the customer.
§ The host will be at the customer’s disposal for questions and wishes for the entire stay.
17
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketSales Service
German customers need comprehensive services and consultancy during the purchase process.
• Support and advisory services before, during and after purchase
• Personalised offer and preparation of relevant data and documents
• Contract management
• Financing consultancy
• Placement of tax and legal consultancy
• Consultancy and support concerning construction and furnishing
Example:
• E&V Resorts as a developer in Portugal in cooperation with Portuguese constructors to ensure high quality standards, fast communication, transparency and local coordination
18
www.engelvoelkers.com/resorts
6. Vorgehensweise einer Zusammenarbeit
20
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketConclusions
Conclusions concerning German customer behavior:
Media usage:
§ German customers still rely on classic print media
§ Greatest effects are measured, if the advertisements are in high quality, very representative and support the products‘positioning
Material:
§ German customers require highly detailed information material to satisfy their safety needs
§ High profile documents alleviate the sales process and ensure transparency for the customer
§ Time intense, individualized offers and exposés are expected by the German customers
Service:
§ The German customer requires various services, security, and transparency during the communication and sales process
§ The German customer needs to be addressed with great sensitivity, with great time effort to create trust as a basis for selling
§ A full service concept has to be offered including highly trained sales staff, consultancy and 100% customer orientation
21
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketConclusions
Conclusions concerning the German speaking markets:
§ There is a stable and growing market potential due to the strong customer base in the German speaking region
§ The German customer is rather risk averse and has great safety needs
§ The German customer requires various services, security, and transparency during the marketing, communication and sales process
§ The German customer needs to be addressed with great sensitivity, with great time effort to create trust as a basis for selling
§ A full service concept has to be offered including highly trained sales staff, consultancy and 100% customer orientation
23
www.engelvoelkers.com/resorts
ENGEL&VÖLKERS RESORTS | The German marketExecutive Summary E&V Resorts
Who is Engel & Völkers?
§ Established in 1977 § 3.340 employees/agents worldwide§ 382 residential real estate shops/ offices and 540 residential licences worldwide§ 36 commercial offices and 32 commercial licences
Who is E&V Resorts?§ Since 2004 - E&V Resorts is a full subsidiary of the E&V group§ Specialized in the tailor-made marketing, sales and strategic consultancy services for luxury resorts§ Target market: German speaking countries (Germany, Austria, Switzerland) and Europe§ Team: Efficient and customer-orientated with experienced in-house architects and marketing and sales experts
What is our service portfolio? § Consultancy services for every stage in the development process: Feasibility studies, SWOT analysis, master
planning, master concepts and more§ Tailor-made marketing and sales for your resort using the strong E&V brand and the extensive network
How do you benefit from a cooperation with E&V?§ Market entry opportunity: Target the high potential German speaking market with a professional cooperation
partner! § Image transfer and market access: Be part of the E&V success and profit from the network!§ Individual strategies: Benefit from the years of experience!