TerraResearch Reveals Findings from 'The Most Powerful Brand 2020'

COVID-19 Creates 3 New Consumer Behaviors in the New Normal Housing Market

December 2, 2020 – Ms. Sumitra Wongphakdee, Managing Director of Terra Media and Consulting Co., Ltd., which operates the TerraBKK.com website for searching homes and condos and provides in-depth consulting on all types of real estate development, stated that 'The Most Powerful Brand 2020' delves into consumer behavior during the COVID-19 era, revealing 3 interesting new behaviors. It indicates that during the crisis, customers are willing to pay an additional 20-30% to purchase real estate from reputable brands. Sansiri has won the 'The Most Powerful Brand 2020' award, maintaining its title for three consecutive years as the dream real estate brand that most people aspire to own.

The research findings 'The Most Powerful Brand 2020' were gathered through online and field surveys from a nationwide sample of 1,581 people. The results show that Sansiri continues to hold the title of Real Estate: The Most Powerful Brand 2020 for the third year in a row, with a Brand Powerful Score of 66% from respondents who are well-acquainted with the Sansiri brand (calculated from 7 performance aspects: Brand love, Brand Famous, Unique, Dynamic, Trusted, Familiarity, Meet Needs).

Over 90% of respondents are well-acquainted with the Sansiri brand and view it as a leader in various aspects such as construction standards, excellent after-sales service, quality, unique design, senior-friendly design, and innovations for living. They also see Sansiri as a brand that understands the needs of residents and investors, reflecting the identity of the owners and instilling pride in ownership.

This year, two brands have also stood out and earned the title of Brand Challenger of the Year 2020: Supalai Public Company Limited, which demonstrated excellence in Brand Trust, or a brand that is trusted for quality, meeting consumer needs, offering good value, accessibility, and designs that accommodate the elderly, and SC Asset Corporation Public Company Limited (SC Asset), which showed excellence in Brand Differentiation, or a brand that stands out online, is luxurious, modern, and instills pride in ownership.

Regarding consumer confidence indices, when asked about the overall economy, over 81% of respondents indicated that COVID-19 has impacted their decision to purchase real estate at this time. The top three concerns were lack of confidence in the economy (69%), job and income stability (67%), and worries about potential future outbreaks (40%).

When analyzing consumer confidence by occupation, business owners (with fewer than 10 employees), freelancers, small traders, private sector employees, homemakers, and business owners (without employees) showed a lack of confidence in the current economic situation. However, in the next 1-5 years, consumers across all groups expressed increased confidence in the economy, believing it will improve. Notably, business owners (without employees) were the only group that felt it was not a suitable time to purchase high-value items such as real estate or cars.

For consumers planning to buy a new home post-COVID-19, there is a greater emphasis on construction materials, security systems, after-sales service, and usable space within the residence.

In terms of future living trends, the top five priorities identified by over 72% of respondents include value for money, security measures (69%), energy efficiency (56%), space design accommodating Work From Home (51%), and cleanliness and hygiene-focused design (50%).

Ms. Sumitra Wongphakdee from TerraResearch, a research service provider, stated that although the COVID-19 crisis in Thailand is showing signs of improvement, the current economic situation has not yet recovered, leading to widespread concerns about unstable income. She believes that within the next year, the overall economy will recover significantly. The findings from 'The Most Powerful Brand 2020' reveal three key points of interest:

The value of a brand is an asset that appreciates in the future. The COVID-19 crisis has shifted many people's perspectives on future living, where a "home" is no longer just a place to live but must also accommodate living, working from home, and other lifestyle needs. The research indicates that if real estate is purchased during this time, consumers are willing to pay an additional 20-30% for homes and condos from reputable brands compared to other projects in the same location, as they believe branded assets will appreciate and can be resold quickly at satisfactory prices in the future.

Homebuyers during this period are those in need, therefore, the service from sales staff is extremely important. The behavior of choosing real estate during the crisis differs from before. The customer journey for most customers often involves looking for projects from familiar brands with fewer options in mind, seeking detailed information about the projects of interest online before visiting the actual projects.

Thus, delivering excellent service through sales staff, from providing information, guiding project visits, finding financing that meets customer needs, to resolving issues and following up on customer feedback, are crucial elements that help build trust in the brand during the crisis, leading to future brand loyalty.

Customer perspectives on “promotions, discounts, giveaways, free stays, and customer assistance measures” from developers reflect the care and vision of management. The crisis has prompted most real estate brands to make significant adjustments. Brands must continuously launch promotions to stimulate sales, with discount campaigns, giveaways, free stays, and assistance in payments becoming essential mechanisms for brands to reach more customers while maintaining their brand identity, ensuring products do not lose value. Customers also appreciate the management's vision through various campaigns aimed at helping existing customers affected by the crisis and new customers who have the opportunity to purchase quality products. High-value giveaways, such as gold, smartphones, and savings bonds, have been popular promotions during the crisis.

“However, the development of innovations and technologies that help save energy and protect the environment is a trend that most people believe real estate developers should incorporate new innovations to create products that meet demands. Additionally, there should be a development of new designs and colors for every project to create uniqueness. In the future, consumers will place greater importance on brand credibility, especially among the new generation of consumers. Reinforcing brand recognition will significantly help build loyalty,” Ms. Sumitra concluded.