Pruksa Real Estate Focus to be Thai Property Leader Featured

Thongma Vijitpongpun, president and CEO of Pruksa Real Estate Thongma Vijitpongpun, president and CEO of Pruksa Real Estate

Thailand listed developer Pruksa Real Estate's target is to make itself a residential brand at the forefront of people's minds, and a top-10 property developer in ASEAN by 2017, by enabling its customers to fulfil their dreams and own a quality home.

As part of its strategy for achieving these ambitions, the listed developer restructured its management team in the middle of 2013.

This is backed up by the company having developed an extensive business process, from the selection of land through to after-sales service - and combining innovation and creativity in order to make its clients' dreams come true.

"We revise our business organisation every year to find the best way to develop the quality of residences that matches our customers' demands, and to learn what customers want and try to do anything we can to meet those needs," said Thongma Vijitpongpun, president and CEO of the developer.

Established 20 years ago, Pruksa Real Estate has fine-tuned its supply chain and business methods to develop homes that serve all segments, he said.

Following the initial step - the business plan - there is land acquisition, project and design concept, preliminary and detailed design, estimate and budgeting, sourcing, government permits, procurement, mock-up house construction, marketing, sales and customer-relations management, credit, construction and quality control system, payment to suppliers, inspection and final quality control and transfer, juristic persons, after-sales service and repair of homes, and a continuous improvement process.

Pruksa's 16 phases in the production process are designed to focus on the quality of residential projects when delivered to customers, and also on creating the best possible quality of life for them, he said.

"When we acquire land, we do not select it based solely on low price, but we study the environment to ascertain whether it is convenient for living and transportation," he said.

When the company designs the homes in a particular project, it is concerned about what the customers' target needs are, and the fact that they should pay a reasonable price for a home, he added.

Bearing these factors in mind, the company starts a project by negotiating with its suppliers over the provision of discounts if its customers want to furnish and equip their new home in a style similar to the design in Pruksa's mock-up home for that project.

"We are now dealing with home electronic appliances first, then we will negotiate with furniture firms. The target is to complete all such deals in the second half of 2014. This is part our determination to do everything we can to make customers' dreams come true," he said.

Deflection issue

The company is also concerned about customer complaints, Thongma said, particularly when faced with the issue of residential deflection, which has been the main problem affecting its brand over the years.

Deflection is the degree to which a structural element is displaced under a load.

At present, the company has completely resolved all outstanding deflection problems, and stands ready to act on a first-come, first-served basis for any new issues that arise, said the company chief.

"We accept that when we deliver more than 10,000 units a year to customers, there are bound to be some cases of deflection resulting from the construction process. But the best way to deal with this is to immediately repair the problem in each instance.

"We also explain to customers what we do [in the construction process] and that deflection is a normal phenomenon given the nature of the raw materials used, such as cement, which retracts when faced with temperature change. This will help put our customers' minds at ease and ensure their convenience when living in their homes," he said.

Thongma said the company had developed its business process on a step-by-step basis over the years, and was confident in all of its business units understanding every part of the process.

The various units are willing to do everything for the delivery of quality homes to customers, and are ready to solve any problems that arise after the transfer of a property, he added.

Brand refreshment

As a result, Pruksa is launching its latest brand-refreshment campaign, "Mind Beyond Invention", which will present everything the developer does to deliver the best product to its customers.

"It is not a marketing campaign to promote our brand as such, but it is about the actual thing that our customers get when they buy a home in one our projects. This campaign is only a message to customers that Pruksa is doing everything for them to make their dream come true," he said.

The company has allocated Bt50 million to launch the first stage of the campaign in 2013, he said, adding that this is not only related to the brand but also for training staff to understand and do everything in line with the Pruksa standard.

"This will be part of our goal to boost [annual] sales to Bt100 billion in 2017, when the company believe its presales will reach Bt40 billion," he said.

It also forms part of the drive for the company's brand to be foremost in the mind of customers both in Thailand and regionally, and for Pruksa to be the Thai market leader and rank in the top 10 in ASEAN by 2017, said Thongma.

Over the past two decades, Pruksa has delivered 110,000 homes to customers in Bangkok and its suburbs. The company will deliver another 15,000 units in 2013.

"Developing our construction process to deliver quality housing is not our only policy goal, as we continue to do everything we can to serve demand because we know having a home is everyone's dream.

"Our overall goal is the transfer of homes to customers that will fulfil their dreams, while at the same time challenging us to develop our skills to develop the quality of our housing all the time," he said.

Last modified onTuesday, 24 September 2013 11:45
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