BEIJING, Oct. 12, 2021 /PRNewswire/ -- Dada Group
(Nasdaq: DADA), China's leading
local on-demand delivery and retail platform, and JD.com (Nasdaq:
JD and HKEX:9618) today announced that they jointly launched "Shop
Now", the JD Xiaoshigou, a jointly built new business dedicated for
JD's on-demand consumer retail section. Shop Now delivers on the
model of "order online, delivery from store, within one hour" and
will accelerate Dada Group's and JD's omni-channel operation in the
on-demand retail space.
With the launch of Shop Now, Dada Group and JD are advancing
on-demand retail from the era of "one-hour delivery" to "minutes
delivery". The new business was overall undertaken by Dada Group,
enabling consumers to enjoy one-hour delivery service when
purchasing products labeled "Shop Now" in the JD App. Through joint
efforts in consumer experience optimization, Shop Now has been
growing rapidly in the testing phase, with a 150% increase in sales
in September compared to January, and attracting an increasing
number of JD's 530 million annual active consumers. In the long
term, the penetration of on-demand retail into JD's consumers is
expected to reach 50%.
"Shop Now is delivering on the promise of on-demand delivery for
JD.com's 530 million users while empowering offline stores, and
enabling our partners to optimize their operations and drive
efficiencies." said Huijian He, Vice President of JD.com and
Dada Group, Head of JD Omni-channel Home-Delivery Department.
"Shop Now combines the retail capabilities and resources of JD
Retail and JDDJ. The enhanced business will provide a comprehensive
portfolio of one-hour, on-demand retail capabilities within JD's
ecosystem, bringing a faster, better and more economical shopping
experience to both consumers and partners."
According to an iResearch Report, GMV of local on-demand retail
in the China supermarket segment
is expected to grow significantly, with an anticipated CAGR of 62%
between 2020 and 2024. On-demand consumption market presents
significant growth opportunities.
A key growth driver
Shop Now accelerates the expansion of JD's and Dada's on-demand
retail, delivery and omni-channel capabilities. With enhanced
solutions and opportunities to expand into additional industries,
JD and Dada are diversifying their digital solutions to meet the
evolving needs for its retail and real economy partners, helping
them reduce cost, optimize efficiencies, and enhance their digital
proficiency while delivering faster, better, and broader services
to consumers.
Shop Now has delivered enhanced experiences for consumers in
verticals including supermarket chains, convenience stores, fresh
flowers and pharmacies, and will enable JD and Dada Group to
penetrate additional markets. Through the partnership under Shop
Now, JD and Dada Group can capitalize on the rapidly increasing
on-demand consumption market and drive long-term growth. The
companies' enhanced on-demand retail capabilities will enable them
to provide integrated solutions through their comprehensive and
innovative retail supply chain management, digital operations and
marketing expertise.
Dada Group is a pioneer and has been relentlessly exploring in
on-demand retail over the last seven years, delivering integrated
solutions for delivery fulfillment, sales and marketing, product
management, user operation and digitalization. Together, the
companies can help retailers and brand owners accelerate their
digital and omni-channel capabilities, while reducing cost and
improve efficiency.
Shop Now: A joint effort
Shop Now will benefit from the market-tested capabilities of
Dada Group's JDDJ, Dada Now and Haibo System, resulting in a
win-win partnership for both Dada Group and JD. Dada Group has
invested in its on-demand capabilities and expects to continue
providing on-demand, location-based retail service for JD's 530
million active consumers, while working to empower business
partners to accelerate growth and enhance operating
efficiencies.
In a typical scenario, after placing a Shop Now order on the JD
App, consumers will receive their products from a JDDJ's partnering
store within 3-5 kilometers radius, delivered by Dada Now within
one-hour.
Jun Yang, Director and Chief
Technology Officer of Dada Group said:" Dada Now is also providing
integrated on-demand fulfillment solutions to address the hundreds
of thousands of active riders fulfilling orders. Additionally, it
identifies issues with warehouse, pickup and package handovers, and
allows supermarkets with tens of thousands of online products to
efficiently achieve one-hour and even minutes' delivery."
The launch of Shop Now builds on JD's previous retail knowhow
and will position both companies as leaders in the on-demand retail
business in the era of hyperlocal e-commerce and enhances JD's
supply chain model. Through this strategic collaboration, JD will
deliver across three different types of retail supply chains: (1)
B2C, represented by JD.com, where products are sent from city
central warehouse and delivered at the same day or next day; (2)
F2C model, represented by Jingxi, where products are sent from
their origins to the whole country; and (3) local model, which
includes offline stores, community group buying and on-demand
retail, among which on-demand retail is represented by Shop Now,
leveraging the power of location-based technology to deliver
products to consumers from offline stores within 3-5
kilometers.
Connects stores and brands
Shop Now will also play an important role in JD's internal and
external supply chain integration, enabling it to fulfill the
diversified needs of producers, merchants and consumers.
Additionally, the integration infrastructure and smart technology
behind Shop Now will deliver significant value across JD's entire
supply chain. As Shop Now serves and connects an increasing number
of upstream companies and consumers, JD's supply chain capabilities
will become even stronger, allowing for enhanced innovation and
greater value for the whole industry.
Daniel Tan, Vice President of
JD.com and President of Communication Department of
JD.com said:" Today there are more than 8,000 mobile phone
stores online with JD.com and with this enhanced retail platform,
consumers can place an order on JD.com from the comfort of their
home and receive their new phones within one-hour, greatly
improving user experiences. In addition, Shop Now has driven an
increase in sales of Apple's authorized stores on JD.com by an
average of 25%."
Ren Tao, Vice President of
JD.com, President of Non-food Department, FMCG & Omni-Channel
Division of JD.com said:" Shop Now is deeply integrated with
FMCG Business, and satisfying consumers' diversified needs by
putting additional categories such as small packaged products, ice
products and fresh food online, which are different from the
traditional ones. Shop Now connects users and JD with on-demand
consumption experience. We will continue to strengthen the in-depth
integration of the JD app and Shop Now, taking advantages from
both, thereby enhancing the user experience and jointly create more
value for the industry."
Shop Now is scalable and will continue to expand to more cities.
Dada Group will continue to work closely with JD to optimize
consumers' shopping experiences, streamline products and services,
and increase penetration into JD's annual active consumers to
deliver exceptional on-demand retail experiences.
About JD.com
JD.com is a leading supply chain-based technology and service
provider. The company's cutting-edge retail infrastructure seeks to
enable consumers to buy whatever they want, whenever and wherever
they want it. The company has opened its technology and
infrastructure to partners, brands and other sectors, as part of
its Retail as a Service offering to help drive productivity and
innovation across a range of industries.
About Dada Group
Dada 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 an 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."
View original content to download
multimedia:https://www.prnewswire.com/news-releases/dada-group-and-jdcom-accelerate-omni-channel-operation-with-launch-of-shop-now-301397676.html
SOURCE Dada Group