Decoding Evergrande's Triumph in Brand Value Rankings of China's Real Estate Industry

BEIJING, Sept. 20 /PRNewswire-Asia/ -- The year 2010 has witnessed great achievements for Evergrande not only in soaring sales despite slow industrial development but also in increasing brand value and household reputation. An original report from Sina Leju on the situation follows:

In the 2010 value brand rankings of Chinese real estate companies released on September 18, Evergrande triumphed over many well-established and flagship real estate companies with a brand value of RMB 8.016 billion. This was another No.1 scored by Evergrande in China's real estate industry under the leadership of Hui Ka Yan, who has always been striving to "be the best". Before that, Evergrande was well-known for its leading positions in the real estate industry in terms of sales area, development area and project layout nationwide.

Since 2006, Evergrande has been listed among the Top 10 Chinese real estate companies in terms of brand value for five consecutive years and the Top 3 for two consecutive years. Its brand value rose dramatically from RMB 4.154 billion in 2009 to RMB 8.016 billion this year, securing its first place in the brand value rankings of Top 10 Chinese real estate companies.

According to industrial information, Evergrande, as a new force in the real estate industry, has managed to surpass Vanke, Zhonghai, Poly and other state-owned real estate companies with inherent development advantages in implementing brand strategies because Hui Ka Yan himself attaches tremendous emphasis on company brand in every link of Evergrande's development. Hui Ka Yan requires Evergrande to do its best in implementing enterprise strategies, boutique projects and product cost control, leading Evergrande to leaping development and sustainable success.

By virtue of its visionary strategies, high-quality products and efficient cost control ability, Evergrande defeated over 500 real estate companies including Greentown, Hopson and Greenland, and became the most valuable brand in the real estate industry. The combination of these three efforts has won Evergrande market recognition and reputation.

In fact, Evergrande has always valued scale strategies. Guided by visionary policies, Evergrande became the first to promote real estate development in second- and third-tier cities and urban-rural fringe areas which proved to have promising development potential and increasing profit margins. It purchases lands at low prices and develops its large-scale projects rapidly with beautiful environment and complete supporting facilities.

Evergrande operates in a different way from that of most real estate companies. Hui Ka Yan has adopted a management philosophy featuring tight-knit collective management, standardized operation, centralized bidding and tendering, and centralized purchase and distribution of materials and equipment to meet Evergrande's needs of strategic expansion, resulting in efficient operation and cost control for Evergrande in project development. This is something that very few enterprises are capable of, not to mention state-owned enterprises.

Evergrande has managed to reduce occupied funds, interest and financial cost by virtue of rapid project development. Just as Hui Ka Yan always says, Evergrande earns its profits from visionary land reserve strategies, strict cost control, and preferential offers from suppliers and contractors. All these make it possible for Evergrande to provide affordable boutique real estate products for ordinary people.

Even though Evergrande applies strict cost control in order to produce affordable products for the market, Hui Ka Yan has always been sticking to the double golden brand strategies (company brand and product brand) that he proposed at the foundation of Evergrande and the strict requirements for boutique products proposed before the nationwide expansion of Evergrande. Hui Ka Yan has also spared no effort to constantly upgrade the products that Evergrande offers to the market.

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SOURCE Sina Leju