Updated: Apr 30, 2020
Featuring Yan Liang, CEO of SunSea, Tony Jiang, President of SunSea, Henry Lu, COO of Tingjiandan. Hosted by Dr. Wen Sang, CEO, Smarking.
00:00-08:00: Introduction to SunSea's and Tingiandan's business, market size and operations
06:40-09:17: An update on the impact of COVID-19 on commuter parking, off-street and on-street in the U.S. as of April 28th
10:09-23:15: The timeline and impact of COVID-19 to China's parking market
24:00-31:15 When it comes to the earlier impact, when China was at the peak of the pandemic, what were things you saw from your peers?
32:24-35:37: While you were in the middle of the pandemic, what did you anticipate in terms of recovery?
36:33-41:44: What are things that you did during the peak of the pandemic to prepare for recovery?
43:59-48:36: What do you anticipate in the coming months? Where do you think parking volume and revenue will be by the end of the year?
48:51-50:22: What are your recommendations to your American peers?
The state of China's parking industry during COVID-19
During the second week of February, at the peak of the pandemic, parking activity was at its lowest. Parking activity was at 5% compared to 2019 volume.
There were differences in volume based on the region but on a weekly basis, it started to increase, and now it's between 60-70% of normal traffic.
Wuhan, which was at only 5% of volume during the peak of the pandemic, is now at 40% of parking activity.
By April, commercial businesses might re-open but consumer behaviors are still in the recovery stages.
On the left is the current volume per China region, on the right is what the volume was during the peak of the pandemic, in February. Very encouraging indicators! For example, Wuhan went from 5% of normal volume in February, to 40% by the end of April.
Recovery by Regions
Proportion of regional contributions before and after the epidemic.
(All data is benchmarked against Dec 2019 daily parking demand/vehicle traffic) Note: East China includes Hangzhou, Suzhou, Nanjing, Yangzhou; Central China (except Wuhan) includes Changsha and Shiyan. Other cities include Hefei, Xi'an, Chengdu, Baoding, Dalian, Fuzhou, Guiyang, Wuwei, Zhengzhou, Chongqing, etc.
Currently, the regions with good recovery include Central China, which have reached 92% in vehicle traffic. In addition, East China has recovered to close to 90%. The recovery in Wuhan has been rather rapid, averaging 10%+ increases per week, and reaching 40% this week and surpassing the Shandong area. Due to the increased COVID-19 cases from overseas, the recovery rate of traffic in South China has shown a downward trend in the past two weeks.
Recovery by Industry Sectors
With the domestic epidemic situation under control and the gradual resumption of production in all regions, parking in the scenic parks/tourism is the most recovered sector compared to all others, reaching 111% compared to Dec 2019. Due to weather, the recovery slowed down this week.
The recovery rate of parking near supermarkets has reached 97%, and the recovery rate of office buildings, hospitals and commercial complexes is over 70%. Hospitals have begun to treat inpatients and surgical patients, and Wuhan office buildings and commercial complexes have begun to operate.
The industries affected the most by the epidemic are hotels, schools, public transportation hubs and others. At present, school opening is delayed for colleges. Hotel occupancy, conferences, and banquet activities are low. The overall recovery of public transportation hubs is not optimistic.
Response and action during the early stages of the pandemic
"We were shocked. We had never had to deal with such little revenue and we needed to secure back up options to ensure our business kept running. We talked to owners, investors and financial institutions for solutions. There was no government support." - Tony Jiang
Tony: We talked to our customers but many of them were unfortunately in a worse position than we were. We immediately talked to investors and sought out backup options. There was no time to waste, we needed to make sure we could keep our company running. We closed a few levels of the garage at malls, since only certain sections were open, among other cost savings measures at an operational level.
We also focused on protecting the health of our employees. We sent them masks, sanitation supplies, and we were extremely careful. We all know that if one person gets sick, it can start a domino effect quickly. We had 0 infections out of 4,000 employees.
Henry: We connected with our employees, made sure they were okay, provided face masks and focused on keeping up to date with the governments response. The largest impact to us was that our new projects were fully stopped, one of the projects was on the Wuhan highway. However, our online cloud-based platform was still running and operators could check on their locations digitally.