YUNJI INC (NASDAQ:YJ) Q2 2020 Earnings Conference Call - Final Transcript
Aug 25, 2020 • 07:30 am ET
at attractive prices. In light of these developments and in recognition of the increasing pain points, we have established our long-term strategy also supporting private labels and in joint venture brands on the supply side utilizing our resources to empower the risk managers on the service side and refining our platform experience and the user value proposition on the user side.
This strategy has helped us to achieve cost essential business growth without compromising our margins and in generating favorable returns for our suppliers and partners.
[Foreign Speech]. Now, turning to our partnerships. On the previous call, we discussed our commitment to establishing deep cooperation with top companies in the fast-moving consumer goods industry to further diversify our supply chain. As such, during the quarter, we continue to identify and resolve many of these companies pain points. For example, one of our partner company is a publicly traded skin care and cosmetic company with outstanding product design capability, patented technology and excellent annual product sales. However, as a result of previously aiming and marketing efforts as a mid to low end of the market, it had not been able to successfully market its high-end products. [Indecipherable] derivative sales on its own, we wanted to reach this company to jointly develop a new medical aesthetic brand on the high end and provide a target new marketing solutions on our platform.
These solutions were quite effective at helping the Company to fill their marketing gap allowing the Company to reach the high end of the market and providing the Company with the resources necessary to break its previous record for average transaction value as well as the profit margin. Our ability to deliver these outstanding results is largely a product of our service managers, who were able to create and share highly engaging content with our targeted users by utilizing their product quality and efficient beauty [Phonetic] effects. These arrangements was also quite beneficial for our service managers as these types of products produce a higher take rate and it starts providing service managers with a good income.
We have a developed a streamlined medical aesthetic product through these partnerships to date. Moreover as a result of our precision marketing capability, each of these products has achieved a positive user feedback rate above 95%.
[Foreign Speech]. Under our partnership programs with 12 emerging brands and a publicly traded fast-moving consumer company, we also partner with some big brands that have produced billions [Phonetic] of RMB in the annual sales. Through these partnerships, we co-produced the product of a quality equal to that of the dear [Phonetic] existing product line and ultimately send these products into our cross [Indecipherable] model where we create more exposure for them through reducing similar types of products.
So the introduction of these product at attractive price points has resulted in more profitable sales. Similarly, we recognize that selling those products provided by our incubated events and a differentiated supply chain has a higher profit potential than that