More Than 6,000 Electronics Stores Launched on JDDJ as of December 2020
Mobile Phones Become One of the Most Important Opportunities in On-Demand Retail
BEIJING, Jan. 13, 2021 — Dada Group (Nasdaq: DADA) ("Dada" or the "Company"), China’s leading local on-demand delivery and retail platform, is pleased to announce that JDDJ’s Data Research Institute today released its 2020 White Paper, "On-demand Consumption of Mobile Phones." The White Paper states that as digital transformation brings new sales engines for electronics stores and establishes online service standards, mobile phones have become the category with the most potential in the field of on-demand retail, outside of fresh food and groceries.
JD Daojia ("JDDJ"), the local on-demand retail platform of Dada Group, collaborates with electronics stores to promote online purchases of mobile phones across the country. JDDJ achieved a new milestone at the end of 2020 with more than 6,000 online electronics stores and 150 partner dealers on the platform. As a result, the mobile phone category was the fastest-growing category for JDDJ in 2020.
Huijian He, the Vice President of Dada Group, said, "Mobile phones offer the most promising opportunities for growth in the age of on-demand retail. With the vision of ‘Bringing People Everything on Demand’, JDDJ has expanded its presence in lower-tier cities and seeks to collaborate with more electronics stores, bringing its convenient one-hour delivery service to a growing consumer base."
The White Paper notes that more than 90% of consumers choosing JDDJ are attracted by its one-hour delivery service. Consumers prefer JDDJ’s one-hour delivery rather than standard overnight or next day shipping options. To ensure the safety of high-value orders, Dada Now, the local on-demand delivery platform of Dada Group, selects specially qualified riders who have undergone training through the Dada Now smart logistics system.
Additionally, the average delivery time for mobile phones in 2020 was cut by 17% compared with 2019, with the fastest order was delivered in a mere 10 minutes. The combination of speed, security and steadily improved efficiency has resulted in high customer satisfaction, and 84% of consumers report being satisfied with the one-hour delivery service. The White Paper also notes that JDDJ has extended its mobile phone business to Harbin, Heilongjiang Province in the north;to Haikou, Hainan Province in the south; and to Lincang, Yunnan Provence in the west.
JDDJ and JD.com began their in-depth partnership to create an omni-channel fulfillment program in 2020, building an extensive online and offline retailing ecosystem for one-hour delivery. The partnership enables users who place an order on JD.com to receive the product from nearby stores on JDDJ’s platform and enjoy Dada Now’s home delivery service. The partnership has been successful so far, and according to JDDJ’s data, sales through JD’s omni-channel fulfillment program on 12.12 event were twice of that on 11.11 event in 2020.
"Dada Group is an important partner for JD’s omni-channel strategy," said Daniel Tan, President of JD Retail’s Mobile Business Unit. "JD Mobile and JDDJ have created a micro e-commerce shopping ecosystem that not only helps retailers improve their efficiency, but also gradually changes consumers’ online consumption habits. Together, we can harness the advantages of our combined supply chain logistics technologies and knowledge to get back to what’s most important in e-commerce: direct contact with consumers."
About Dada Group
Dada Group is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China’s largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The Company’s two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA."
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