Bangkok--31 Mar--PR One Network
In order to secure organic growth, the Emperor refocuses its corporate vision to be a leading architectural designer and builder in its 3rd decade. The company is set to become a legend in premium home building and has highlighted its design, construction and service standards as the strength that will differentiate itself from the market and maintain its market share in 2009.
Mr. Suratchai Kuenghakit, Managing Director of The Emperor House Co., Ltd., a leading premium home builder, discloses today that the company is celebrating the coming of its 3rd decade in the home building business in 2009 and, in order to maintain its position in the more-than-20-million-baht home building market, it has refocused its corporate vision to be a leading premium home builder and spread its wings to become a leader in the design and construction of architectural buildings. This does not limit to residential architectures, but also other classic architectures, e.g. public and religious buildings, convention halls, government offices as well as other classic styled houses.
Besides the refocus of its corporate vision, the company has also laid out the three home building standards in order to reemphasize its position in the premium home building market, i.e. 1) the design standard that will cater more to the elderly and has a precautionary system to gauge for the unexpected; 2) the construction standard that will dictate the selection and use of only quality materials, which will result in a life-long useful life, as well as a professional management; and 3) the service standard that will embed resourceful service personnel in every aspect either an architect, an interior designer, or a service engineer that is ready to listen and give advices. The company is convinced that the new image will help the company achieve new businesses, while the three standards will enforce its strength and make the company stand out in this competitive market.
Mr. Suratchai further reveals about the company’s result in 2008 that the company has total revenue of 260 million Baht. Out of this figure, home building contributes 190 million Baht, while interior design contributes 70 million Baht, implying a proportion of 3:1 respectively. In 2009, the company expects to make 110 million Baht from home building and 160 million Baht from interior design activities. Despite an economic slowdown, which will result in declining purchasing power as well as lower consumer confidence, the company is certain that there are still plenty of demands and purchasing power in the premium home building market, which is expected to grow further, as seen in the Home Builder 2009 organized by the Home Building Association during late February that the home building market is still solid with an onsite sale of 470 million Baht. In addition, the company also projects that the home building market in 2009 will be at 62 billion Baht from 55 billion Baht in 2008. As the outlook is not all that bright, the company has to aggressively move in and try to steal the share small contractors.
Though the home building market is adversely affected by current economic slowdown, it is only natural that the market is not highly sensitive to the general economic backdrop. It should be noted that though the economy sharply contracted in the first quarter, this does not directly affect the home building market due to the lagging effect. However, it is certain that there is a negative trend in the general economic outlook, which will be obviously seen in the second and third quarter.
As for the government’s stimulus package, the company views that the package is tailored out more towards supply, while does not create or stimulate any new demands in the market. Given the fact that 70% of home building market customers will use cash to finance their purchases and the remaining, 30% borrow the money from the financial institution so the government should give the benefits for those with excess cash to reap, if they spend their money on home construction. The recent market expansion is, thus, due to several positive factors, e.g. stable costs of building materials, interest rates as well as special promotions made by several home builders. All these contribute to higher demands in the home building market. However, despite all the unfavorable conditions, the company is confident that the home building market will continually rise and become a key economic driver for the country. Most importantly, home building companies must focus more on quality and services, while the government’s stimulus package will serve as a supplement.
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