Perspectives · Real estate sector

Customers remember the furniture name, forget the developer

Real estate showrooms are inadvertently marketing for subcontractors, not for themselves.

Quick summary

When the logos of furniture or material suppliers appear more than the investor's identity in the showroom, buyers remember the subcontractors rather than you. This is the co-branding trap: you pay to build the model house, while others reap the brand equity. The solution is not to remove partner logos but to establish a clear hierarchy of identity, where the investor always stands at the top.

Visitors to the showroom walk through the kitchen and see the logo of a German kitchen cabinet brand, enter the bedroom to find a large mattress label stuck above the bed, and step into the living room to see a rug accompanied by a tag from an Italian furniture brand. They leave with a clear impression of those three names. The investor's name? It fades with each step toward the exit. This is not uncommon. This is the co-branding trap that most real estate investors in Vietnam are falling into without realizing it.

The showroom is the most valuable brand asset

Building a complete model house costs from several hundred million to several billion VND, not including operational costs, consulting personnel, and the time of the entire sales team. The initial goal is clear: to let buyers see the life they will have, feel the quality, and trust the investor.

However, during the construction process, something went off track. The furniture supplier requested to place their logo because they sponsored part of the project or offered a deep discount. The material company wanted to appear because this is a large project that could serve as a sales reference for other investors. Each individual request seems reasonable. The overall result, however, is not: the showroom becomes an exhibition fair for subcontractors, with the investor playing the role of the booth organizer rather than the owner.

31 to 33%The average price difference of branded residences compared to equivalent projects without high-end branding. Source: Savills, Branded Residences Report 2023.

The above figure shows that branding in real estate has quantifiable value. However, this is proactive and controlled co-branding, where the investor chooses to attach the name of a hotel or luxury brand to add value. What happens in most ordinary showrooms is the opposite: supplier logos appear without planning, without hierarchy, and the investor gains nothing beyond a short-term discount.

Customer memory cannot be aggregated

According to research by Jenni Romaniuk in the book Building Distinctive Brand Assets, brand identity assets can only accumulate when they appear consistently and prominently enough for the brain to associate them with the correct brand name. When many logos appear in one space, the brain does not combine them all. The brain selects the most prominent, repeated, and emotionally connected one.

In a showroom where the furniture logo is printed on every drawer, every table leg, every kitchen cabinet, while the investor's logo only appears on a sign at the entrance, the perception hierarchy has been implicitly established in a way that is unfavorable to the investor. Buyers are not malicious; their brains are just doing their job.

A brand is the perception of customers, not what the organization declares.

Marty Neumeier, The Brand Gap

That perception is formed from every detail in the space, from the materials you touch to the small logo printed in the corner of the catalogue. The investor can control those details, but only with a clear understanding before signing a contract with the supplier.

Where the trap originates

This trap does not come from negligence but from the way tasks are divided by department. The sales department signs agreements with suppliers to save costs on building the model house. The design department receives the house with a list of materials along with logo conditions. The marketing department comes in later, seeing the showroom already finished with little left to change.

As a result, the most important brand decision throughout the entire sales journey, namely the model house, is made by someone without the mandate over the brand. No one intends to make a mistake. But no one takes responsibility in the right place.

45%The percentage of real estate buyers who consider the investor's reputation as a criterion for choosing a project. Source: Batdongsan.com.vn, survey of home buyers, over 1,000 people.
57%The percentage of buyers considers the financial capability of the investor as the top criterion, right before reputation. Source: Batdongsan.com.vn, same survey.

Reputation and trust rank as the top two criteria for purchasing decisions. Yet, the most important touchpoint for building those two aspects is being shared with suppliers who do not have the same brand goals.

Correct co-branding versus leaky co-branding

Co-branding is not bad. Associating a five-star hotel with a premium project is intentional co-branding; the investor chooses partners because their value adds to their brand. Buyers clearly understand what they are paying extra for.

Leaky co-branding differs in that it occurs without planning. No one sits down and decides how many times, where, and at what size brand X kitchen cabinets will appear compared to the investor's identity. Everything accumulates gradually through small contracts, and the final result is not designed by anyone but is something everyone must bear.

The difference does not lie in whether or not the partner's logo is present in the showroom. The difference lies in who controls the hierarchy of those logos.

How to establish identity hierarchy

Control does not mean removing all partner logos. That would disrupt collaborations and is unnecessary. What needs to be done is to establish the hierarchy before signing a contract with any supplier.

  • Clearly determine where the investor's identity should appear in the showroom, with minimum size and frequency. Do not leave this to the subjective feelings of the construction team.
  • Regulate that partner logos may only appear in pre-approved positions and must not be larger than a certain ratio compared to the investor's identity in the same space.
  • Clearly define: the reception area, the contract consultation area, and the signing area should not have supplier logos. These are decisive moments; the brain needs to remember the investor's name.
  • Incorporate this regulation into the contract with the supplier, not just a verbal agreement. A reputable supplier will respect this. A supplier unwilling to negotiate is a signal to reassess the partnership.

A good brand guidelines document will clearly specify how to handle the logo in a co-branding environment. If your guidelines do not include this section, it is a gap that needs to be filled before the next sales season.

Transparent note: The 31 to 33 percent price premium of branded residences is collected by Savills from high-end and super high-end projects in Asian, Middle Eastern, and European markets. This premium does not uniformly apply to all segments and markets. In Vietnam, branded residences are still in the early stages of development, and direct comparative data is insufficient to conclude equivalent figures.

Lessons from brands that maintain their position

Brand-disciplined investors like Vinhomes or Ecopark do not let this happen because they have teams and processes to control identity at every touchpoint. When you enter their showroom, everything from colors, fonts, to room naming speaks in one voice. Furniture and material partners may appear, but within the defined framework.

Not every investor has that scale. However, the principles do not depend on scale: the hierarchy of identity is a strategic decision, not a design decision. It needs to be made by someone with authority over the brand, before the showroom begins construction.

The showroom is where buyers decide whether to trust or not. The question Sinh Vũ wants you to ask yourself after reading this is: if all the investor's logos were removed from your showroom in an hour, would visitors still know whose model house they are in?

References

Savills, Branded Residences Report 2023. Batdongsan.com.vn, survey of buyer confidence n>1,000. Marty Neumeier, The Brand Gap. Byron Sharp, How Brands Grow (Ehrenberg-Bass). Jenni Romaniuk, Building Distinctive Brand Assets. Kantar BrandZ 2020.

Frequently asked questions

Co-branding with furniture suppliers in the showroom is beneficial?

It is beneficial when done correctly: reputable partner logos add quality signals to the model apartment. The problem arises when partner identities overshadow the investor's identity, causing buyers to remember the wrong brand. The practical rule: the investor's identity must appear clearly at least two levels above any partner logos in the same space.

How to control brand identity in the showroom when there are many subcontractors?

The first step is to list all the points where logos appear in the showroom, from the sign at the entrance to the labels on the furniture. Then determine the hierarchy: which logos are allowed to appear, the maximum size compared to the investor's logo, and where they are not allowed to appear at all. This needs to be documented in the contract with the supplier, not just verbally agreed upon.

What is a branded residence and is it related to the co-branding trap?

Branded residences are projects that attach the name of a luxury brand outside the real estate sector, typically a hotel or luxury brand, to increase the value of the apartments. Savills reports that this segment sells at a premium of 31 to 33 percent compared to equivalent unbranded projects. This is proactive and controlled co-branding, completely different from the spontaneous appearance of subcontractor logos in the showroom without a clear strategy from the investor.

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