TRUMP
Even on a traffic-free Sunday, with cars running at high speeds on EDSA, it would be difficult to ignore the giant billboard depicting real estate tycoon Donald Trump, with his signature hairstyle. That intense gaze of a multibillionaire American tycoon seems to put a stamp of global “street cred” on The Trump Tower Manila of Century Properties soon to rise in Makati City—the very reason that the imposing billboard has been put up.
It’s not just Donald who’s making a marketing presence in the country and lending internationally recognized names to property developments. Celebrity socialite Paris Hilton has personally endorsed the Azure Urban Resort Residences, which will feature the Paris Beach Club, while Gian Giacomo Ferraris, chief executive officer of iconic lifestyle brand Versace, has thrown his support for The Milano Residences Manila, another Century Properties venture, which will feature the Versace Home within the project. Hilton and Ferraris have already made the rounds in Manila a few months ago, while Donald Trump is arranging a visit soon, according to a reliable source.
Inquirer Property asked analysts their view of the emerging trend of international endorsers for local projects.
Prof. Enrique M. Soriano, program director for the Real Estate Center for Continuing Education at the Ateneo Graduate School of Business, shared that “licensing or franchising international brands or engaging iconic personalities is an acceptable strategy, especially when you are targeting OFWs [overseas Filipino workers], expats and the premium market, but ultimately, it is the combination of the three pillars that can make or break projects. These are excellent and innovative developments, customer centricity and organizational efficiency.”
Architect Froilan L. Hong observed that “the present battle of big billboards with big names in real estate developments is one indicator of the fierce marketing strategies to catch the residual market for high-end condominium developments as well as resort developments. The high-end markets have thinned out and what we are seeing is a mad rush to sell them fast.”
Hong added: “Everything is very fluid in this present situation,” noting that the US, European and Japan economies are down. According to him, the economic contraction in these markets may have stimulated the big-name endorsers to look this way.
HILTON
Paul Vincent Chua, associate director, valuation and advisory services and head of consultancy and research of Colliers International, said “these endorsements, as well as the use of their names, make the project very unique in a market where a lot of similar developments have come out in recent years offering the same if not overly used design concepts and lacking in any character.”
Real estate educator and engineer Enrico Cruz said that “real estate projects are not like clothes or perfumes or handbags where endorsement of celebrities can tremendously favor sale.”
“In real estate projects, the best endorsers are the real estate brokers from whom buyers depend on for their buying decision and the developer’s reputation. Good projects will sell even without endorsement by celebrities and brokers,” Cruz added.
Alejandro S. Mañalac, chairman of the National Real Estate Association, stressed: “It is very important to note that these famous international personalities are not just endorsers but are actually involved in the projects bearing their brands.”
Mañalac added: “Having the trust and confidence of these respected brands and actually carrying their names on the project bring more than prestige and pride of ownership to the investors and residents. Before an internationally renowned and prestigious brand allows any company to officially carry its name, not only will the aspiring company be under strict scrutiny, but they will have to pledge that that they will abide by all the rules and comply with the high standards consistent with their guaranteed quality anywhere in the world. This only means that when you buy a particular brand of a certain product in Europe, in the United States or even in the Philippines, you can be sure that you will be enjoying exactly the same quality and standard.”
Based on Colliers International’s data, Azure Residences was able to sell 76 percent of the project before the announcement of Paris Hilton’s design of its beach club. It sold an additional 10 percent, or roughly 300 units, within two months after the announcement.
FERRARIS
Ups and downs
Although celebrity endorsements are good strategies, Soriano said it should not stop there. He described it as a battle of perception. “Under an extremely competitive marketplace, perception can be short-lived if you don’t support it with the two other pillars: customer centricity and organizational efficiency.”
Chua said a major disadvantage of tying a project with a celebrity is that if the celebrity or icon suddenly was embroiled in events that would result in the celebrity’s negative image in the international scene, then in the local context, that brand would be tarnished as well.
“So this means, choosing whom to partner with is critically important. On the flipside, for foreign brands to partner with a local company, they would also do their own due diligence, since if the local developer does not deliver on its promise to buyers, then that diminishes the reputation of the celebrity endorser as well,” Chua noted.