Let us see what's going on. US
economy is under the sentiment of fiscal cliff which may result in slowdown of
its economy. Europe is struggling to stay above the water. After PIGS
(Portugal, Ireland, Greece and Spain) bad news now France and Italy have
fundamental issues that would take time to fix. Unemployment across the globe
is driving anti-outsourcing sentiments both in political and business circles.
This situation would drive uncertainity and unpredictability of performance
from Indian IT industry. The result of that we are already seeing in salary
freezes, lower fresher intake. This would mean the cash-flow generated by IT
employees for real-estate industry is certainly going to come down and it would
pressure on real-estate demand. If interest rates goes super low level (7%-8%)
of 2004, that may help builder community but that's unlikely.
The questions are:
What's the impact on builders? - Obviously it would be harder to sell. There would be increased pressure on pricing and cash flow. The high networth investor community from IT industry is already sitting on inventory and given current high prices is not willing to invest in new projects. This would further add to the pressure as capacity to hold the inventory goes down.
What should builders do in this situation? - The answer is "change"!! With the demand situation changing, the builders perspective need to change towards higher Customer Service and Increasing Transparency to differentiate. Along with this managing the cost of Sales and Office operations. It is estimated that 30-40% of less sales and office operations staff can deliver the same output as earlier. But how? Our clients have use homebuy360 effectively to make sales more accountable and automate office operations and on average saved Rs 15-20 Lakhs per year. Secondly builders should really evaluate the value from their online search portal marketing investments. Is that really providing the real leads? Instead, look to experiment with Referral Marketing. This is one feature that we are working to introduce in next 3 months.
Challenging time bring opportunity for smart organizations. Homebuy360 team is committed to build your organization smart