Ricki Osterthun presentation 26.11.2009

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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)

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Ricki Osterthun presentation 26.11.2009

  1. 1. The potential and requirements of the German speaking markets www.engelvoelkers.com/resorts 1
  2. 2. ENGEL&VÖLKERS RESORTS | The German market Reasons for an investment Investment Investment Investment / /Private Use Investment Private Use Private Use Private Use www.engelvoelkers.com/resorts 2
  3. 3. ENGEL&VÖLKERS RESORTS | The German market Favourite destinations for an investment Europe • Spain • Italy • Portugal • France • Greece • Germany Worldwide • USA • South Africa • Dubai www.engelvoelkers.com/resorts 3
  4. 4. ENGEL&VÖLKERS RESORTS | The German market Purchase decision criteria for an investment Macro • Family • Country – Accessibility • Language • Medical Support • Weather • Costs • Interest of Family • Service Concept • Political circumstances • Security • Utilisation www.engelvoelkers.com/resorts 4
  5. 5. ENGEL&VÖLKERS RESORTS | The German market Purchase 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 www.engelvoelkers.com/resorts 5
  6. 6. ENGEL&VÖLKERS RESORTS | The German market Requirements 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 www.engelvoelkers.com/resorts 6
  7. 7. ENGEL&VÖLKERS RESORTS | The German market Requirements 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 www.engelvoelkers.com/resorts 7
  8. 8. ENGEL&VÖLKERS RESORTS | The German market Requirements 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 www.engelvoelkers.com/resorts 8
  9. 9. ENGEL&VÖLKERS RESORTS | The German market Requirements 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 www.engelvoelkers.com/resorts 9
  10. 10. ENGEL&VÖLKERS RESORTS | The German market Market 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 www.engelvoelkers.com/resorts 10
  11. 11. ENGEL&VÖLKERS RESORTS | The German market Successful marketing and customer communication The German customer highly quality sensitive, with strong safety needs and high expectations towards all contractors. Customer Customer communication and service process moves in Customer approach Information and Site visits Sales and after sales and lead generation customer contact services • Ad campaigns • Brochures • Travel • Contract management arrangements • Financing consultancy • Online/ Internet • Facts & Figures for customer • Direct • Exposés • Consultancy and • Site visit support concerning marketing • Building program construction and • Events descriptions furnishing • Highly qualified sales personal www.engelvoelkers.com/resorts 11
  12. 12. ENGEL&VÖLKERS RESORTS | The German market Successful 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 Sunday Circulation: Welt: 280.387 / WamS: 402.069 (Reach Combination 1,2 Mio.) § i.e. FAZ/ FAS Style: Daily national newspaper/ FAS every Sunday Circulation: 362.396/ FAS 336.513 (Reach: FAZ/ FAS: 1.6 mio. readers in Germany/ worldwide) § High quality lifestyle images Product quality, reliability and positioning Strong tool for lead generation www.engelvoelkers.com/resorts 12
  13. 13. ENGEL&VÖLKERS RESORTS | The German market Successful marketing and customer communication Toscana Resort Castelfalfi Double page, Welt/ WamS, June 16th 2009 www.engelvoelkers.com/resorts 13
  14. 14. ENGEL&VÖLKERS RESORTS | The German market Successful 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 www.engelvoelkers.com/resorts 14
  15. 15. ENGEL&VÖLKERS RESORTS | The German market Successful 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 www.engelvoelkers.com/resorts 15
  16. 16. ENGEL&VÖLKERS RESORTS | The German market Successful 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. www.engelvoelkers.com/resorts 16
  17. 17. ENGEL&VÖLKERS RESORTS | The German market Sales 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 www.engelvoelkers.com/resorts 17
  18. 18. 6. Vorgehensweise einer Zusammenarbeit www.engelvoelkers.com/resorts 18
  19. 19. www.engelvoelkers.com/resorts 19
  20. 20. ENGEL&VÖLKERS RESORTS | The German market Conclusions 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 www.engelvoelkers.com/resorts 20
  21. 21. ENGEL&VÖLKERS RESORTS | The German market Conclusions 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 www.engelvoelkers.com/resorts 21
  22. 22. Thank you for your attention! www.engelvoelkers.com/resorts 22
  23. 23. ENGEL&VÖLKERS RESORTS | The German market Executive 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! www.engelvoelkers.com/resorts 23

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