|
|
New Business Trends  Property Investment
The great property debate – global versus national brands
Today’s property market reflects the phenomenon of the global age and the growth of competition on a worldwide scale. Within any given residential area in South Africa, one finds international brands operating alongside well-established local companies and “Mom-‘n-Pop” operations in the competitive environment of buying and selling homes. What, if anything, does a global property brand offer the consumer in the age of globalisation and technology, and why is an internationally recognised brand relevant in the South African context?
According to Dr Duncan Gray, CEO of CENTURY 21 South Africa, the South African Master Franchsior of the world’s largest real estate brand, international property brands offer a degree of peace of mind that local operators cannot as easily provide. “The process by which an international franchise license is granted to any specific country involves careful consideration of the local operator by the international franchisor. The international brand owner also sets very well developed standards of operation to ensure consistent delivery of the brand’s service promise around the world, and these are closely monitored by the international franchisor. In addition, a well established set of best practices is shared between national master franchisors and the international franchisor. The shared experience that has been built up over many years collectively between the international franchisor and all the national master franchisors, goes a long way to ensure that operations in each country are at a set standard comparable on an international level.
“It is this very consistency driven by global brands and their remote operations that buyers of goods and services are seeking when they select a well known international brand above any other. In that process, the buyer receives some assurance or indication that the product or service purchased is likely to conform to the standard set by that brand worldwide,” continues Gray.
Within the South African context, some of the world’s foremost real estate brands can be found on street corners around the country, including Sotheby’s, Re/Max, Engel & Völkers and CENTURY 21 South Africa. Several well-established and successful real estate companies have chosen to affiliate themselves with international brands, realising the advantages of an internationally recognised brandname in today’s highly portable society, as in the case of Lew Geffen Sotheby’s International Realty®. Having been established over 36 years ago and now boasting 8 400 offices in 46 countries, the recent arrival of the CENTURY 21 System into the South African market has sparked debate over the issue of global versus national brands. There has certainly been unprecedented interest in the brand, with 30 franchises being signed up in just nine months, despite a stringent selection process.
Says Gray, “The world has shrunk in terms of time for distance travelled. As such, we are all far more likely to experience other countries than our parents ever were. In addition, the portability of management and professional resources has resulted in a tremendous growth in expatriate working populations. Both of these factors support the use of an international brand. Ideally, one would want to be able to benefit from similar methods and standards of practice whether you are selling or buying property in New York, London or Johannesburg – preferably achievable through a smooth interface between the offices operating under the umbrella global brand.”
Says international property guru Stefan Swanepoel in an article entitled ‘Which Brands are the Best in Residential Real Estate (in the US): “The reason for branding is to evoke a response from the consumer. A brand name often establishes trust and a sense of security among consumers. Their positive experience with a brand in one location will often result in that consumer using the same brand in another.”
“A further difference between a global brand and a national brand is that there is always a higher forum for appeal,” says Gray. “If something goes wrong with the client’s service experience, dealing with a national brand can end his or her appeal for assistance at a national head office, sometimes with frustrating results. Dealing with an international brand can assure the client that his or her appeals will be heard at a much higher level, with the potential to enlist the aid of the international franchisor in his or her search for the fairest outcome.”
new business trends  property investment |
30 Articles:
|
| |
subscribe to our newsletters
|
Please click the button below if you would like to subscribe to our SME Newsletters, BizSmarts and SABizOps New Business Opportunities.
|
demographics survey
|
BizAssist Reader Survey
BizAssist.co.za is currently running a reader / visitor survey so that we may gain further insight into our website visitors and their areas of interest. We have some fantastic prizes up for grabs in our monthly draws so please assist by telling us a bit about yourself. Complete the reader survey and you could be a winner! |
|
|
|
|
section specialist
|
Jason Lee
Jason Lee has a BA LLB degree from the University of Cape Town and is an admitted attorney of the High Court of South Africa. He is the co-founder and a director of TCB Properties, a dynamic property investment and development company offering a range of property services. Since the publication of his bestselling book Making Money out of Property in South Africa , Jason has been featured in a number of magazine and newspaper articles and has appeared on radio and TV. He is also a regular guest speaker at property-related functions. You can visit his website at www.jasonlee.co.za. |
featured SME seminar
|
|
Performance Management
Date: 5/10/2010 - 5/10/2010
All managers must continually monitor and assess their employees work and skill level. An effective performance ...
|
|
|
