Avrame LLC from Estonia is entering Asia with its pre cut Aframe houses
CEO and founder of Avrame LLC Mr. Indrek Kuldkepp was invited to participate in one of the biggest real estate developers expos in Asia (Hankyung International Real Estate EXPO - REK 2019). Avrame took the opportunity and was showcasing its products in cooperation with its partner in South Korea and Japan (Endure Home). Interestingly Avrame was the only company from Europe that was participating in the expo. The rest of the world was well covered.
Business scale
The business scale is very different in Asia when you compare it with the rest of the world. For example the usual residential real estate developments in Europe start with just few houses. In South Korea and Japan, the real estate developers spoke about much bigger quantities.
The fast jump on the scales is nothing to be afraid of for Avrame. Most of the manufacturing process is outsourced. That helps to keep the everyday costs low but gives the company the ability to be very flexible. Avrame works only together with big and responsible companies (Aru Grupp, Plasto, Ruukki, SFS, TYVEK, etc.). When lots of houses are ordered, then Avrame will have no trouble with fulfilling the demand.
Price competitive
Importing the wooden house kit from Europe to Asia may not seem to be the most money-wise thing to do at first glance. But it actually is reasonable. For example shipping from Estonia to South Korea costs around 2000 euros for one 40’’ container full of goods (fits around 35000 euros worth of Avrame products in it). When you add the customs to the calculation then it will be still very competitive pricing with the local suppliers.
Speech
Indrek had the chance to do a presentation in the expo (prime time). The main point of his speech was that the house has to serve you, not the other way around.
Avrame A-frame houses are considerably less expensive to build than the traditional house. The saving starts with the foundation - you don't have to make a concrete slab – depending on the soil you can build the houses to a stripe foundation or post and beam foundation (up to 60% cheaper than the full slab). The second part of saving comes from the frame - you will build roof, walls, and structure at the same time (saves from labor and material costs). On the inside, there is less useless surfaces (fewer materials). The houses are easy to maintain - when you want to refresh your house, then you will just need to service the cladding in the gable walls.
Key points of the Avrame concept
- High quality - no compromises on the quality of the materials;
- Fast build - the structure is pre-cut. Everything goes together with ease;
- Compact to ship - one 40’’ container fits roughly 35000 euros of Avrame products in it;
- Eco-friendly - wood is sourced from a sustainable Estonian forest. Less useless space = smaller footprint
- Unique and attractive look
In conclusion
Real estate developers are very good with numbers. All the pros that Avrame’s designs offer generated lots of interest in the company and made new business connections. Avrame has currently sold just a few houses to Asia. This is just the beginning of something much greater.
Read more about Avrame, from https://avrame.com/