TuanChe Limited (NASDAQ:TC) Q2 2020 Earnings Conference Call - Final Transcript
Sep 18, 2020 • 08:00 am ET
61 total shows across 56 cities compared with 344 auto shows in 186 cities in the second quarter of 2019. That being said, our offline auto shows and special promotion events are now mostly back to normal in some cities we operate. China's auto market has also begun to show strength. In July, China's auto retail sales increased 7.7% year-over-year, the highest level since May 2018. In this context, we are optimistic we can deliver a significant quarter-over-quarter improvement in the third quarter for our offline marketing services, while making sure the health and safety of our employees and customers remains our top priority.
Strategically, we will continue to assess and adjust the pace of resumption of our offline business and focus on generating higher ROIs. We will also further leverage our deep insights in automotive transactions and develop customized and targeted special promotion events for each auto dealer and OEM.
Next, let me move on to our growth initiative in virtual dealership and online marketing services. Our revenues from virtual dealerships, online marketing services and others, reached RMB19.9 million, increasing 180% year-over-year, primarily driven by successful online sales events that were held during the second quarter, and most notably, the live streaming promotion events was conducted in collaboration with Tmall Auto during the week of June 18, 2020.
Such encouraging results were propelled by our unique integration of touch points and channels for online customer acquisition and marketing with offline promotion activities, which not only creates a seamless and holistic shopping experience for consumers, but also helps auto OEMs and dealers effectively reach customers and achieve increased sales conversion rates.
Now, I would like to add more color on live streaming and its role in automotive sales. First of all, e-commerce transactions facilitated by live streaming has experienced a very fast growth in recent years. In 2019, live streaming accounted for about 4% of China's e-commerce GMV. As consumer behavior shifted faster online this year due to the impact of the pandemic, live streaming penetration is expected to reach a rate of 7% to 9% according to iMEDIA Research.
On the other hand, since the purchase decision surrounding a car is much more dynamic and protected compared to general consumer products, completing an auto transaction entirely online has been proven difficult. But given our successes in combining online live streaming with offline infrastructure and capabilities, we expect live streaming promotion events to become the central component for the acceleration of full digitalization of automotive marketing. And we see ourselves increasingly well-positioned to empower both the consumers and the manufacturers and dealers in the end, capturing the enormous opportunity associated with the changes in the automotive retail industry.
Now, I will turn this call over to Chenxi, our Deputy CFO, for a closer look at our financial performance in the second quarter.
Thank you, Mr. Wen. Hello, everyone. Thank you for joining us. As our CEO, Mr. Wen, just mentioned, while COVID-19 pandemic was effectively contained in China, the China