SOHO China: Design, Development, and Social Harmony

Case Solution

Arthur I Segel, Mukti Khaire
Harvard Business School ()

Founded in 1995 by Zhang Xin and her husband, Mr. Pan Shiyi, SOHO China has grown into a world-class real estate development company that has consistently delivered high-quality projects known for their innovative designs and investment potential. Despite the tremendous success of the company, Zhang Xin looks to the future with great uncertainty. Average home prices in China have fallen as the government continues to put pressure on home prices by restricting the number of homes a resident can purchase and aggressively promoting affordable housing at the lower end of the market. Zhang Xin wonders what opportunities and risks such market conditions present for SOHO. On the sales and marketing front, SOHO China has historically only geographically focused on high-quality design-oriented projects in Shanghai and Beijing. As the market became more competitive, Zhang Xin wondered what key strategic design, financing and distribution decisions the company would have to make to maintain its competitive advantage in China.

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