Sinyi Real Estate in China

Sinyi entered the mainland Chinese market in the early 1990s. Over twenty years of construction, Sinyi expanded its operations to places such as Shanghai, Beijing, Chongqing, Suzhou and Zhejiang. By establishing a special bi-business model in China — a direct business model for Sinyi Rehouse and a franchise operation model for Coldwell Banker — Sinyi aimed to offer the best real estate agency service to customers in mainland China. Sinyi’s “Confucianism-based” and “people-centered” culture was deemed as a key to its success in the Chinese market. However, in 2008, as the market of mainland China kept expanding and competition intensified, Sinyi’s corporate philosophy and business model were challenged. Mr. Chun-chi Chou and his management team considered the following questions: Although they looked similar, the mainland China market differed from the Taiwan market. Under these circumstances, should Sinyi adhere to its previous corporate philosophy of righteousness and trustworthiness? Would Sinyi need to change its business model in order to counter its competitors’ aggressive moves? What necessary measures must Sinyi take in the ever-changing market? This case study introduces the corporate culture, development strategy and challenges of Sinyi in China, encouraging reflection and discussion of globalization strategy and emerging market strategy.