CEO Ariel Frankel also talks about the real estate market and, among other topics, about investing in brand media
Synonymous with a high-end compact development, Vitacon stands out in the real estate market for working with the concept of a modern life style, with services added to the buildings. Surfing the wave of the shared and non-digital economy, the developer is also a pioneer in the unit tokenization process and already has most of its sales concentrated in online channels.
Our mindset will be 100% of the time being challenged to change the status quo and bring more innovation and simplify the customer’s life, says CEO Ariel Frankel. In this interview, the executive also talks about the real estate market and, among other topics, about the brand’s investment in media, whose biggest share is digital, in addition to the new slogan Vitacon invents and you reinvent yourself.
What is the origin of Vitacon?
Vitacon is a family company, we are already in the third generation, because one side of the family had this tradition of incorporating. But 13 years ago we understood that much more than incorporating, building and selling square meters, we had a greater mission to create Vitacon, which is a 13-year-old brand, and to add a different value. A phrase that we like to bring that reflects very well that Vitacon does not sell square meter, it sells time squared. In other words, 13 years ago we decided to adopt a business model of building a compact, intelligent enterprise in a simple way, with services and technologies in the financial nerve center of So Paulo, on the Paulista and Faria Lima axis, where the vast majority of of our ventures.
How is this business model?
It brings a concept with units that help in the modern life style, in which people do not use a car on a daily basis, with lots of sport, networking, proximity and simplicity. Basically, the company has been verticalizing and expanding based on the purpose of giving more time to what really matters and making projects that are increasingly modern in terms of housing trends and that life style that determines the new form of consumption. Today there is a lot of talk about sharing, that you don’t need to have the good, that the important thing is to have the possibility of using it. We are proud because we started the company with this mindset and it’s been at least eight or nine years since we implemented this whole issue of shared, collaborative economy, services inside buildings, and today it has become a reality and a necessity.
Do all the brand’s developments bring more compact apartments and services to the resident?
We make typologies that vary from 20 to 180 square meters and they all bring the same concept and purpose of optimizing space, convenience and services. Vitacon has made a name for itself in building compact apartments. We are not proud of compacting, but of bringing a solution that serves that public. If he can pay BRL 500,000 for a two-bedroom apartment, we can deliver an ultra-compact unit to a prime area. A good summary that I like to bring is that the building is the hardware where we are delivering the brick, the typology, the floor plan, and we have improved a lot in this area that is the software, with the services that we put inside the buildings, such as gym and shared kitchen , shops, food and professional coworking space, all efficiently and cheaply. Our mindset will be 100% of the time being challenged to change the status quo and bring more innovation and simplify the customer’s life. One of our missions is to make real estate assets as liquid and simple as possible.
Are the projects focused on residential buildings?
Mostly residential, yes. Vitacon is only in So Paulo, but we have some projects to do something unique abroad. We have practically 100 projects developed in So Paulo.
And what is the release forecast for this year?
This year, we should launch nine developments. For 2024/2025 we have the same projection, considering land that we have already acquired and are currently buying. The objective is to bring bolder and bigger projects, so that our sales volume grows.
How is the real estate market currently?
From 2014 to 2018, the market was very bad, with all the political problems, such as impeachment. From 2018/19, it reacted very well. 2021 was a record year, 2022 was practically very close, despite interest rates and other external and internal complications having disturbed the end of the year, but it still reacted well. During the pandemic itself, the market stalled for three, four months, but then it came back at a very strong pace. 2023 is still early to talk about, because there are doubts and uncertainties everywhere, but what we did in January and February is already surpassing the same period of 2022 and we expect to have growth, referring to last year, of at least 40% to 50%. Partly because we postponed the launch of two projects from the end of last year to the beginning of this year and the other part is because we are confident and very well prepared to face 2023.
When a development is launched, how long does it take for units to be sold?
We have a track record of selling between 40% and 80% of the development in the first month.
How is brand communication worked?
We have an in-house that develops works such as social media, day-to-day communications, and two external agencies. Z15 takes more care of the institutional/product and Bob supports us with sales and online promotion.
And how are online sales in the real estate market?
I would say that companies are well connected in a digital/technological journey and have a slightly friendlier product, below R$ 1 million/R$ 2 million, which makes it easier to have this online negotiation. For the purchase of a more expensive product, the customer tends to put his foot at the sales stand. In summary, I would say that a company that is not very prepared for digital must already have sales from around 30% to 40% of the online world. In the case of Vitacon, which we consider to be a company that surfs well in this online promotion, 80% of sales are digital, in a sale fully supported by technology and non-face-to-face contacts.
What is the brand’s tagline and in which media does Vitacon invest in?
We do a lot of online media. Google, Facebook and Instagram remain the main media. We took the opportunity to be at different events in the sector and other segments. We also do many events with partners and customers that help to promote the brand.
And what are the trends in the real estate market today?
There’s an audience for everything. Positive vegetative growth in Brazil. The country has a housing deficit of seven million, obviously the majority of the public is from the lower classes, D and C. But I would say that there are two major trends today. First, with the post-pandemic passing, there are natural changes that happen over time, such as a smaller family, or a person who is doing well at work and wants a bigger apartment, or is moving away from work. This is a constant thing and it will never stop. In this case, logically, these 2, 3 or 4 bedroom apartments meet this need. The medium and high end suffer less impact in a more volatile economy. Now, there is this issue of consumer behavior, which is where Vitacon comes in. The single public in So Paulo has already surpassed 50%, whether expatriates, young people, divorced, living, modern couples where everyone lives in their own apartment, and the company is mostly in this niche. We realize that the big trend is this new lifestyle, in which people want to use what they really need. a more minimalist life. We are convinced that this new lifestyle is a very strong trend and tends to grow even more in an urban center like So Paulo. Mainly among the single public, who do very well in apartments of 30, 40 and 60 square meters.
About Vitacon’s investment in media, is it focused on digital?
We also do a lot of OOH, occasionally on our land or in activations at events. We stopped making printed newspapers a long time ago. In our view, online manages to capture this strength. We make printed media occasionally to disseminate some information. Radio and TV have not been done, but we are studying a plan. These averages have had a reduction in value in recent times. Before, it was very expensive to operate and today there are already some opportunities. Our slogan ‘Vitacon invents and you reinvent yourself’. The previous slogan was Invent the city, in which our purpose was to promote this new life style and reinvent the city. The last update is a provocation in the sense that it now has more services, more technology and new products, and we help to put a trend on the table and the customer reinvents himself to have a more pleasant life, with more time and quality.
