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Century21 Real Estate Launches into China—the huge and most promising market

Along with the further housing reform in China, greater support from the government and the increasingly frequent communications with the international counterparts, real estate industry has become another point of economic growth in the 21 century in China. Since China’s entry into WTO, some incisive businessmen have realized the great opportunities that becoming integrated into international market will bring. Currently, real estate intermediary agents spring up quickly in China. Shanghai alone, the fastest growing place with a relatively mature and vigorous market, has up to 4,000 qualified agents. Such a huge market has inevitably attracted overseas real estate agent giants’ attention.

Due to the informal operation formats of some unqualified agents, Chinese real estate agents have been criticized by the medias for several years. The bad image some unqualified agents brought has greatly influenced their development; along with their insufficient brand awareness and relatively slack management system, consumers don’t have much confidence in these agents.

With higher demand from the customers and increasingly fierce competition in the real estate industry, the operation format of these agents calls for tremendous reform. They have to figure out a way to make them more competitive, thus they are trying to attract customers by cutting costs, improving service and developing famous brands. In this reform, “franchise” emerges as required. This brand-new business format with mighty advantages makes a perfect combination with real estate agents.

The most direct benefit that franchising brings is the great brand name power, which would influence customers’ purchasing behavior. Meanwhile, through franchising, a company can improve and innovate its services, which would stimulate customer’s loyalty to the brand. This is especially applicable in real estate industry. A good brand means fine credit. There is still no powerful brand name coming into being in domestic market. Most of the intermediary agents are still in their infancy, when they lack systematic management and sustaining support, similar to the situation in 1960s in the United States. The chaos that results from intermediary market’s immaturity has become the obstacle on the real estate progress.

With the government’s highly imposing on housing reform, the startup of second-hand house market and the increase in international migration, it is the right time for international real estate giants to enter Chinese market. It is under this background that CENTURY21, the world’s recognized franchising real estate agent, expands extensively into China.

The launch of the real estate giant

The entry of the Century21 in China and the establishment of Century21 China have exerted deep impact on the development of Chinese real estate agents. It would bring to China advanced operation format, management concept, American MLS information technology system and the systems of recruiting, franchisee management, training, supervision and administration, visual image, franchise promotion, which are set up with 30 years’ exploration and research. All these enable Century21 to become the frontier of the world’s real estate industry.

To better fit into the Chinese market and to integrate the Century21 soul with Chinese realities, Century21 China headquarter did a lot of deep and detailed research. After their research and analysis on Chinese real estate agents and discussions with some experts, they decided to employ secondary licensing format in China, i.e. the headquarter in China gives license to a regional qualified enterprise to establish a Century21 regional branch, who will exercise the function of administration, back-up, training, management and supervision. This regional branch will develop franchisees to engage in the real estate agent business. This kind of secondary licensing essentially localizes the management and operation concept, thus avoids the common problem faced by other international franchisors, which are simply not accustomed to Chinese soil.

Century21 China was actively looking for regional representatives to authorize the regional agency. Until the end of year 2000, Century21 had opened more than ten outlets in Beijing and set up branches in Xiamen, Zhengzhou and Wenzhou. It was said that Century21 aimed to establish 30 regional branches, 2,000 outlets and trained 14,000 house agents in the years to come. It was believed that their action would also fundamentally drive forward the real estate industry in China.

When asked about the feeling of joining in Century21 China, one of the franchisees Fanhua said it had already experienced the advantages and power of the system of Century21 real estate within a short time.

Fanhua made the first contact with Century21 in a franchise exhibition in Beijing. They got to know that Century21 had just stepped into Chinese market and were seeking expansion and they began to know the client support, systematical training and network system of the Century21. In order to stand firm in the heated competition and with a plan to build a strong marketing team, Fanhua found it was wise to make use of a world-renowned real estate brand name.

On its entry into Chinese market, Century21’s first task was to expand and recruit franchisees. They were very strict in examining prospective franchisees. They had brochures about contractual details and requirements and concepts on management. After negotiations and with assistance from the Century21 headquarter, Fanhua began preparation for the opening. The headquarter offered support and guidance on everything, such as personnel employment, outlet decoration and commercial plan.

Fanhua had experienced all the more the powerful system of Century21 when the outlet was opened. First, the professional training they received from the headquarter (IMA training for shopkeeper and 21plus training for house agents) allowed them to know further about the management concept of Century21, which also laid a solid foundation for their future operation. Based on the Century21’s powerful network platform, Fanhua made a website, which enabled them to deliver house sources and trades online. The toll free telephone in the headquarter regularly offered free house sources that guarantee the going-on of the business. The consultant visited the outlets on a regular basis to exchange ideas with personnel, which could help franchisees adjust in time.

Fanhua now boasts an efficient and competent marketing team and with the support from the regional branch, they can deal with the real estate agency business with expertise and skills. The company’s business scope, from the originally single house lease, has also expanded to real estate appraise and consulting, new building planning, decorating and sales, office building lease, second-hand house sale. Fanhua has won its recognition in the Beijing real estate agents market.

Ace card—advanced MLS system

Century21 found out one of the key reasons that Chinese real estate agents were in an awkward situation and couldn’t get recognized by customers was their unspecialized operation and out-of-date information; while it was the trend that the Chinese real estate agents improve their specialty qualities, build professional agents teams, share sources together and practically bring convenience to customers.

To be in line with the situation, Century21 further localized its most advantageous training system and e-commence system and developed many training courses especially for house agents. In order to draw extensive attention from the public and standardize the overall real estate agent environment, part of the courses were available for the public, including courses of introduction of real estate franchise system, how to operate and manage, marketing and etc. It raised great response both in real estate industry and other industries. Meanwhile, they introduced the advanced MLS system--Multiple Listing System, which originates from the United States. It realized house resource sharing through the house resource database on the Internet.

Photo from Baidu

Source:
Editor: Grace
Date: 2005-4-4 14:18:00

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