3 THINGS TO CONSIDER POST CORONA PANDEMIC TO KICK START INDUSTRY (Especially REAL ESTATE)The Newspapers, Live News Shows, The Social Media are all busy showing the number of corona-infected cases (New, Recovered, Deceased with the total in each category) in India and all over the world.
It’s so SCARY, isn’t it?
If you dig down into detail you will also be updated about the socio-economic devastation that the pandemic has caused and is causing with every passing day. We do not know how many people will directly or indirectly lose their lives because of the coronavirus nor do we know the extent of economic damage that will be induced in different industry segments which will compound the overall depression in the country’s economy. The reason being the disease is far from being contained forget it is over.
So, what do we do? Do we keep waiting for the disease to be contained so that we can measure the physical and economic damage and then formulate a strategy or path to recovery? or we start taking calculated measures to keep the economy afloat.
The Govt of India is doing all that it can to limit human loss by lockdown and rigorous testing (whatever is possible) and praying for social distancing together with maintaining health and hygiene.
The Govt has been proactive by transferring funds to the poor and women using DBT. Various state Govts have undertaken various measures to feed the underprivileged and fund them to the extent it is possible.
The RBI has also pumped close to 4 Lac crores into the system to help the industry. There is a moratorium available to retail and corporate customers for 3 months so that they can manage their finances and not be declared a defaulter. The compliance deadlines have been extended so that the industry doesn’t get pressurized and cash-starved.
Over and above this Our PRIM MINISTER has proved to be a TRUE LEADER, A VISIONARY, and A COMPASSIONATE HUMANITARIAN. In these tiring times, he has held the country united in the fight against this deadly pandemic.
Like all other industries, THE REAL ESTATE INDUSTRY is worried as it is the second-largest employment generator after agriculture and with the current pandemic virtually destroying the revenue generation in the business there are limited ways to keep paying salaries, maintaining the headcount together with repaying the debt and other statutory liabilities.
THE FEAR IN THE REAL ESTATE INDUSTRY POST-CORONA PANDEMIC
There is a fear of being classified as NPA
There is the fear of defaulting on delivery and facing the RERA court
There is a fear of not being able to raise fresh funds
There is a fear that generating revenue using fresh sales may be slow affecting the cash flow management
There is a fear that the customer may not pay the instalments of the tied-up sale
There is a fear that the developer will not be able to collect the lease and the lease may be renegotiated leading to losses
AND SO, ON …
Various real estate industry bodies are giving representations to the Govt, to Ministry of Finance, RBI, the HFCs, NBFCs, NHB, RERA, NCLT, and others to handhold the industry because not only is the industry a source of employment generation it has a large weightage on country’s GDP and also it gives business to more than 250 SMEs and MSMEs.
While this is a work in progress and I am sure the Govt will be proactive in announcing various measures there are 3 THINGS that I have identified which may be considered to give a positive kickstart to the industry: –
1. COUNSELLING: This is a time when the Entrepreneur/Developer/CEOs/Decision Makers will have to make a task force to counsel various participants. Counsel the employee with compassion and explain to him the need for his participation in conquering this distressful situation even if he has to take a pay cut or a salary deferment.
The leadership will have to individually assess each person’s requirement and give him a solution which will help him overcome his financial obligations and sustain himself at this time. The task force will also have to counsel the customer at this time lest he gives knee jerk reaction to his already taken decision. The leadership will have to counsel vendors and business partners and make a collaborative arrangement so that all could be tied out of the pandemic crisis.
2. CONNECTING & COMMUNICATING WITH MASSES: The second most important thing to do from the leadership chair is to connect with the masses – connect through communication virtual or physical doesn’t matter. The leadership will have to take an elephant’s Ear and listen to what the masses desire at this juncture. Masses will have to be given a practical solution.
3. CREATING A PLATFORM TO BUY RATHER THAN SELL: The Organisation has to dwell on strategies that the consumer is motivated to BUY. A Push Sale strategy will not work at this time because the customer is too scared – scared not only for the reason that he will not get delivery or there will be a commitment default from the developer but scared of losing his job scare to face a salary cut forget increment at this time.
Reducing prices, giving freebies, or offering schemes is the story of the past to tempt the customer to buy, it has to be something bigger than what he can dream.
C-C-C THE 3Cs every developer can consider at this time to overcome the slowdown
I am prepared to elaborate and make a practical presentation of
EACH “C” to demonstrate how to do and the output of the initiative.
To Sum it up –
STRATEGY – THE BIG WINNER
Remember the Elephant & Ant Story: The Elephant is mighty, strong, and powerful – The Ant is tiny, weak with no power. However, the Ant has what the Elephant misses “INTELLECT”. Intellect to strategies on how to solve its problem and also to protect itself and demolish the Elephant if provoked.
We surely know the Elephant & Ant story and the outcome-Today CORONA VIRUS is the Elephant and we as an industry will demolish it using Ants’ Strategy.