In 2015, Pruska Real Estate announced that it wanted to record THB100 billion in home sales by 2020. The firm rushed out countless launches and created several special business units and brands to make this a reality. However, home loan borrowing restrictions, a sluggish economy and, eventually, COVID-19 meant the goal was no longer feasible.
“We launched many new brands at that time and branched out via many strategic business units as we focused on a large number of projects,” Khun Piya Prayong, Pruksa Real Estate CEO, explained to the Bangkok Post. “In some locations, we had more than one project and they cannibalized each other.”
Instead of simply launching more and more projects, Pruksa Real Estate has changed its growth strategy to focus on sustainable opportunities. This meant streamlining operations and becoming more efficient.
“Cutting brands and special business units will help increase efficiency. Each special business unit should generate THB3-4 billion in revenue per year. This is a suitable level for our new goal — sustainable growth,” Khun Piya stated.
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Pruska Real Estate looks to set itself apart
With competition throughout the Thai property industry increasing, Pruska Real Estate has begun to explore ways it could differentiate itself. This is a process that started before the COVID-19 pandemic hit.
“We planned to have a lean organization and change the business model to a thinking company even before the pandemic,” Khun Piya stated. “Customer value is our focus. We will beat our rivals based on eight factors we determined from our conversations with customers.”
According to Pruska’s CEO, the two most important factors are premium project location and home functions. Other key considerations include materials, design, facilities and environment. Additionally, the firm will look at other ways it can improve its residential offers and ensure they stand out.
“We aim to be a thinking company and plan to join Vimut Hospital, one of our affiliates, to introduce residential projects with healthcare services,” Khun Piya detailed. “These projects can boost recurring income for the parent firm.”
