Uxin Limited (NASDAQ:UXIN) Q1 2021 Earnings Conference Call - Final Transcript
Sep 08, 2020 • 08:00 am ET
Thank you. [Operator Instructions] We have our first question from the line of Eddy Wang of Morgan Stanley. Please go ahead.
Hi. This is Michael, Nancy. Thank you for taking my question. [Foreign Speech]
Let me translate myself. So my question is about, the long-term outlook of the used car industry in China, especially for the next few years. So -- and under that background, I think what's the advantage of the inventory taking business model we will adopt, yes, just want to hear your thoughts on that? Thank you.
[Foreign Speech] In the past one or two years upgrading product quality and services is a keynote in every consumer-facing industry and sector and high-quality production and satisfaction services are the foundation of selling more customers and building reputation. Under this environment, where individuals are highly connected with each other and the information exchange is highly effective building reputation and gaining word of mouth referrals is key to our Company's long-term sustainable growth and this is also very true in the used car industry, after over a decade of development, we are their last industry senders and honestly, the industry -- the used car industry unfortunately had a less than satisfactory reputation. We believe being honest and sincere when servicing customers offering them high-quality used cars and premium services is the best way to transform the entire industry and achieve a healthy and long-term growth for the overall sector.
Yeah. So in the past one or two years, more and more consumers are turning away from new cars and chose to buy used cars. This is not simply because they cannot afford buying a new car, but more about they have now have a more regular consumption philosophy. They want to spend less on a used car, but get a like-new condition, which is almost as good as a new car. With this trend more and more used car dealers will come up willing to offer high-quality used cars and premium services. And in turn with this benefit, more and more consumers will also chose to buy used cars as well and affected by the soft macro economy, overall, used car industry will see a very slow growth rate here, but looking at next one year or two, we are expecting it will gradually recover to a double-digit growth. We decided to build our own inventory of used cars now is actually encouraged and driven by our quality focus and a customer referral strategy. We believe offering high-quality value for money in used cars and premium purchasing services will witness higher customer satisfaction and reputation as well, more customer trust and word-of-mouth referrals will not only increase our car sales, but also improve our ability to drive long-term market expansion as a result of the quality premium our customers are willing to pay us.
We started to build our inventory now, because we think we have three, four advantages. The first one is about the digitalization and intelligent data analytics both