What is Sales and Marketing Strategy of China Evergrande Group Company?

China Evergrande Group Bundle

Get Full Bundle:

	BCG	$15	$10
	5 FORCES	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

What was China Evergrande Group's sales and marketing strategy?

Founded in 1996, China Evergrande Group rapidly became a major Chinese real estate developer. Its initial strategy focused on affordable housing, with early projects selling out quickly. This approach contrasted sharply with its later market position, as the company faced liquidation in January 2024, with its market value significantly reduced.

Evergrande's core business model emphasized high turnover, rapid land acquisition, construction, and sales to fuel aggressive expansion. This allowed for the development of numerous projects across China, extending into various other sectors.

The company's sales and marketing strategy was characterized by aggressive pricing and rapid project launches. They utilized a broad range of marketing channels, including online advertising, property exhibitions, and sales promotions. A key element was their focus on volume sales, aiming to achieve quick cash flow to reinvest in new developments. This approach was instrumental in their rapid growth, but also contributed to their substantial debt. Understanding the China Evergrande Group BCG Matrix can offer insights into their product portfolio's strategic positioning during their growth phase.

The sales and marketing strategy of China Evergrande Group historically centered on a direct sales approach for its real estate developments. This involved establishing sales centers at project sites to foster direct interaction with potential buyers, a tactic aimed at accelerating sales and generating quick cash flow, aligning with its high-turnover business model.

Direct Sales Model

Evergrande primarily utilized a direct sales model, setting up sales centers at its project locations. This allowed for immediate engagement with prospective buyers, facilitating rapid transactions.

Property Services Integration

The company's property management arm, managing approximately 579 million square meters of GFA as of December 31, 2024, also served as a channel to reach customers. This subsidiary explored community group buying and special counters for agricultural products.

Diversification into New Sectors

Beyond real estate, Evergrande expanded its sales channels into new energy vehicles (NEVs). The company also ventured into smart charging services through a joint venture, aiming for integrated service offerings.

Market Context

In 2024, the broader Chinese real estate market experienced a significant downturn, with sales for the top 100 companies falling by 28.1%. Market stabilization is anticipated by late 2025.

Sales Channel Evolution and Challenges

While specific sales channel performance data for 2024-2025 is limited due to the company's financial restructuring, the overall strategy involved leveraging its extensive property portfolio and expanding into new growth areas. Understanding the Marketing Strategy of China Evergrande Group provides insight into its customer acquisition methods and market penetration strategies.

• Direct sales centers at project sites for immediate transactions.
• Property services subsidiary acting as a customer touchpoint.
• Expansion into NEV sales and smart charging services.
• Community group buying and agricultural product sales initiatives.

China Evergrande Group SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

China Evergrande Group historically employed a multi-faceted marketing approach, blending both traditional and digital tactics. Its early success was partly attributed to a 'three highs and one low' model, which also served as a winning marketing strategy. The company recognized its primary audience was Chinese consumers, focusing its digital efforts on platforms with heavy traffic within China.

Digital Platform Focus

Evergrande utilized Chinese social media platforms extensively for advertising and content sharing. While also present on global platforms, its main digital efforts concentrated on reaching a substantial audience within China.

Technology Integration

The company leveraged multiple mobile applications, such as an IN-House ATS for tracking job applicants. This indicated an embrace of technology for various operational and potentially marketing-related functions.

Content and Customer Experience

Evergrande's content marketing strategies aimed at creating a customer-friendly environment. This focused on product pricing and overall customer experience to gain market foothold.

Traditional Media Presence

The company demonstrated an understanding of brand visibility through traditional media. This was evident in its television marketing campaigns for its electric cars.

Intense Television Marketing

An 'unusually intense television marketing campaign' involved 'bombarding TVs with frequent, short ads.' This contributed to an increase in the shares of the newly renamed China Evergrande New Energy Vehicle Group.

Hybrid Marketing Approach

Evergrande's past use of both traditional and digital channels aligns with the optimal hybrid approach. This approach builds broad visibility and drives targeted engagement.

Evolving Marketing Landscape

The marketing landscape in 2025 suggests a continued dominance of digital marketing due to its precision and scalability. AI-driven personalization and AI-generated content are becoming mainstream, with social media platforms expected to dominate engagement with brands.

• Digital marketing offers precision and scalability.
• AI-driven personalization is a key trend.
• Social media platforms are crucial for brand engagement.
• Traditional marketing remains relevant for brand building.
• A hybrid approach leverages the strengths of both channels.

China Evergrande Group PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

China Evergrande Group's brand positioning was built on rapid expansion and providing accessible housing to a wide demographic, particularly middle-income families in China. The company's core message emphasized swift development and sales, facilitating significant market reach and growth across the nation.

Affordable Housing Focus

Evergrande positioned itself as a provider of 'real estate for people's livelihood,' delivering well-decorated homes. This strategy aimed to make competitive products accessible to a broad market segment.

Ambition and Quality Perception

The company's name, 'Evergrande,' reflected its founder's aspiration for continuous growth and achievement. This was coupled with a commitment to quality and innovation, fostering a reputation for industry excellence.

Peak Valuation and Market Impact

By 2018, the company achieved the distinction of being the world's most valuable real estate firm. Its market penetration strategies were highly effective in capturing a significant share of the Chinese real estate sector.

Impact of Financial Crisis

The financial difficulties that began in 2021 and led to liquidation in January 2024 have severely damaged its brand perception. Homebuyers' trust has been significantly eroded due to concerns over unfinished projects.

Despite the parent company's liquidation, Evergrande Property Services continues its operations, focusing on service enhancement and cash flow management. In 2024, this subsidiary reported operating revenue of approximately RMB 12,756.7 million, a 2.2% year-on-year increase, and a net profit of approximately RMB 1,032.0 million. This demonstrates a continued effort to maintain operational stability and service delivery amidst broader market challenges. The current Chinese real estate market is characterized by falling property values and oversupply, with consumer confidence being a critical factor. In this environment, maintaining brand consistency and adapting to evolving consumer sentiment are paramount for any entity operating within the sector.

Brand Messaging Evolution

The company's initial brand messaging centered on rapid growth and accessibility. This has been significantly challenged by recent financial events, necessitating a re-evaluation of its market communication.

Customer Trust and Perception

The financial crisis has led to a substantial decline in customer trust, particularly among those who purchased properties. Rebuilding this trust is a major hurdle for any future brand initiatives.

Property Services Continuity

Evergrande Property Services continues to operate, showcasing resilience. Its focus on service quality and financial management aims to preserve a functional aspect of the original brand.

Market Context and Consumer Sentiment

The broader Chinese real estate market faces headwinds, impacting consumer confidence. Adapting to these market dynamics is crucial for any brand's positioning and sales strategy.

Brand Repositioning Challenges

The company's historical brand positioning is now overshadowed by its financial collapse. Any future repositioning efforts will need to address the significant damage to its reputation and Revenue Streams & Business Model of China Evergrande Group.

Competitive Landscape

In a market with declining property values, brand consistency and responsiveness to consumer sentiment are more critical than ever. Competitors are likely focusing on rebuilding trust and offering stable value propositions.

China Evergrande Group Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

Key campaigns have been instrumental in shaping the trajectory of China Evergrande Group's sales strategy and Evergrande marketing strategy. These initiatives aimed at rapid market penetration and brand awareness, particularly during its formative years and its diversification into new sectors.

Early Market Penetration: Jinbi Garden Launch (1997)

The initial campaign for Jinbi Garden in 1997 focused on a 'small area, low price and low cost' approach. This strategy was highly effective, leading to the project selling out in just two hours and generating RMB 80 million in sales.

Automotive Venture Promotion: Hengchi NEV Campaign (August 2023)

More recently, the new energy vehicle segment launched an intensive television marketing campaign for its Hengchi brand electric cars. This aggressive advertising aimed to build brand awareness and boost investor interest in its automotive ventures.

These campaigns highlight a consistent reliance on aggressive promotion to achieve sales targets and influence market perception. The early success of the Jinbi Garden campaign validated the company's high-turnover business model, enabling further expansion and access to financing. This approach to property sales in the China real estate market was a cornerstone of its growth. The later automotive campaign demonstrated a similar strategy of broad-reach advertising to introduce new product lines, even as the company faced significant financial challenges. The effectiveness of such Evergrande marketing campaigns, however, has been severely impacted by the company's financial crisis, leading to a liquidation order in January 2024 and share trading suspensions. Offshore unsecured creditors may see recoveries as low as 3.53% of their claims, indicating a shift from active marketing to crisis management and asset recovery.

Sales Tactics: High Turnover Model

The core of China Evergrande Group's sales strategy revolved around rapid development and quick sales cycles. This allowed for efficient capital turnover and fueled aggressive expansion across the China real estate market.

Advertising and Promotion: Traditional Media Focus

Evergrande's approach to property marketing in China often involved substantial investment in traditional advertising channels, particularly television, to reach a broad audience and drive demand for its developments.

Market Penetration: Aggressive Expansion

The company's market penetration strategies were characterized by rapid acquisition of land and aggressive development, aiming to establish a significant presence in key urban centers across China.

Customer Acquisition: Volume-Driven Approach

Evergrande Group's customer acquisition methods prioritized volume, leveraging attractive pricing and rapid project completion to attract a large number of buyers, contributing to its overall sales performance analysis.

Brand Positioning: Real Estate Dominance

China Evergrande Group's brand positioning in real estate was built on scale and rapid growth, aiming to be perceived as a leading developer capable of delivering numerous projects across the country.

Sales Growth Drivers: Project Velocity

The primary sales growth drivers for Evergrande were the sheer volume of projects launched and the speed at which they were brought to market and sold, a key aspect of understanding Evergrande's sales funnel.

Current Financial Standing and Marketing Impact

The company's financial crisis and the subsequent liquidation order in January 2024 have fundamentally altered its operational focus. With shares suspended from trading and potential delisting from the Hong Kong Exchange in August 2025, active marketing campaigns are no longer the priority. The current emphasis is on managing the liquidation process and asset recovery, a stark contrast to its previous aggressive sales and marketing strategy. This situation also provides context for the Competitors Landscape of China Evergrande Group, as the market adapts to its reduced presence.

• Liquidation order issued in January 2024.
• Shares suspended from trading, potential delisting in August 2025.
• Focus shifted to asset recovery and liquidation management.
• Offshore unsecured creditors may recover as little as 3.53% of claims.

China Evergrande Group Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔