However, quality and delivery on time help in building image, believes Joydeep Bhattacharya, head, consumer products and retail practice, Bain India
Q. What are the key differences in branding between the FMCG and real estate sectors?
There are some differences like buying an FMCG product is a consumption decision whereas housing is an investment decision. The other difference is that in the FMCG sector, the frequency of purchase is high whereas housing is a once-in-a-lifetime choice. In the FMCG sector in India or for that matter in most parts of the world, we see very high repertoire behaviour among consumers who tend to have a number of brands for consideration in a particular category. The decision about an FMCG brand is taken at the point of purchase. Housing is a far more deliberate decision which requires a whole lot of work.
Q. How important is branding for real estate developers?
Branding is important in the housing sector. In recent times, we have seen many efforts by developers to do deliberate branding. But, regardless of it, there is anyway a brand in the user's mind. It is the perception that the consumer carries in his mind about a developer. So, a branding image is already there and the developer only needs to figure out whether this image is good, bad or ugly, and then figure out how to change that. The way we see it, branding works as a premium for some brands in terms of sales velocity in the housing sector. The so-called better brand results in higher sales velocity, higher absorption and better pricing. This is true across markets of Bangalore, Mumbai and Delhi.