Greentown Lijiang Apartment Marketing Strategies

Although in the 1^st quarter of 2009, the Real Estate market in most cities in China witnessed a boosting sales volume, the medium term outlook of this industry remains to be weak. The main reason lies in the uncertain macro economy, the high inventory level of house and land, and the unimaginable house price that far supassing the income level of Chinese residents. Therefore, China Real Estate market may be facing the longest recession since the reform of China dwelling market in last century.The house sales in Hangzhou city also rocketed in the beginning of 2009. But this was actually stimulated by the sharp drop of house prices. Meanwhile, Hangzhou experiences more severe gap between supply and effective demand in house market. Therefore, as the demand accumulated in the weak market since 2007 has been fully digested, Hangzhou house market may quickly headed down again.Greentown Group, the largest Real Estated Company in Zhejiang Province, suffers more from this recession. The sales volume of most of Greentown's projects, including the Li Jiang Apartment, dropped dramatically since the 4^th quarter of 2008. Greentown Company also met serious financial problems. The situation has been so uncontrolled that, in early 2009, it was said that Greentown would apply for bankcrupcy protection. In the middle of April 2009, Greentown announced that it will breach the contract of the debenture it issued, and offered to buy back the debenture at 85% discount.This essay tries to solve the problems that Greentown is facing. By analyzing the macro and urban economic and industrial environment, the internal situation of Greentown Company, and the competition that Li Jiang Apartment faces, the essay offers the main strategy choices for Greentown Company. Then the essay designs multiple plans that Li Jiang Project can use, and chooses the comparatively more optimal choice for the project.