Sep 06, 2022

CGP Insight | New Challenges for Real Estate Industry Professionals In 2022

Early 2021, the government has promulgated the “ three red lines ” policy, and the industry has begun to reshuffle violently. The real estate industry has implemented the deleveraging policy. In the environment of blocked financing channels, it is generally faced with financial pressure. With the deepening of the policy impact, many real estate companies’ default overseas ratings have been repeatedly downgraded, market volatility, increasing the difficulty of overseas debt financing.


Design function is not enough to recover the overall downward trend of real estate

People in the real estate industry are more focused on macro policy control, rather than rely on marketing functions to restore the market, because real estate advertising in the face of the entire market downturn environment, it is difficult to produce a fundamental role.


From the perspective of the industry, the real estate advertising industry is completely affected by the scale of the real estate industry, and the real estate market further shrinks. The corresponding is the expansion of the capital chain of the real estate advertising industry. The traditional real estate advertising companies cannot solve the fundamental contradiction between the low gross profit era and the growing cost structure, which leads to the intensification of competition in the industry. As the core position of real estate advertising, the real estate design industry has also received serious impact.


Further Reduction of Marketing Expenditure in Real Estate Industry

The development of the real estate industry in 2021 is conservative. On the one hand, maintain high-density marketing, accelerate the recovery of funds. Stabilize the capital chain and revitalize cash flow by selling projects or seeking equity cooperation. At the same time, it is necessary to speed up the shift to fine management, fine operation and cost savings.


Among them, the reduction of marketing cost means the further contraction of profit space for the real estate advertising industry whose profit is declining year by year. In addition, the development of the two core technologies further reduces the human cost of the design industry. One is that the development of artificial intelligence led by python language has deeply integrated the computational image with artificial intelligence, and ai technology can be used to complete a large number of basic design work in a short time. Second, the competition among domestic design content websites is increasing. Higher quality website content makes designers professional skills converge, and designers industrial value is being challenged.


Real estate designers face choices, transform or persist

According to the news released by the current government, the real estate industry is bound to rebound within a certain time point in the future, but whether it can reach the profit rate of the previous golden age remains to be considered. On the one hand, a large amount of investment in marketing work is needed in the process of market recovery. On the other hand, the decline in the profit rate of the real estate industry will lead to a decline in the capital investment in marketing work, which means that real estate advertising companies have entered the era of low gross profit in an all-round way and cannot cope with the and the prospect of the real estate design industry is not optimistic. Talents in the real estate industry are faced with two choices: industry transformation and hard stay.


According to CGP group marketing insights:"the orderly decline of the real estate industry leads to the same blow to the surrounding industries. For real estate design talents, we can choose more promising industries at present, and rely on the extension of the design industry itself to obtain more employment opportunities in other industries".the real estate industry and real estate design are mutually dependent industrial relations. The sales mode of futures housing makes it difficult for real estate advertising companies as core suppliers to obtain a healthy capital chain. The company s high-risk operation has a profound negative impact on the employment stability of real estate design talents and their own industrial development.


For real estate design talents, the current competition in the field of real estate advertising is increasing, and it is difficult to obtain equal labor income. Real estate design talents should return to the core value of the position, take the function of visual communication and creative inspiration as the core value, and seek more potential positions in more extension industries.