Paper provides an overview of on-demand retail's open
platform model for the first time.
A comprehensive practice guide with development path and
successful cases, for retailers and brands who desire to grow in
the China market.
SHENZHEN, China, July 27,
2022 /PRNewswire/ -- Dada Group (Nasdaq: DADA)'s
JDDJ and JD.com's Shop Now showed up at the "2022 China
International Retail Innovation Summit". On-demand retail, as the
megatrend in the retail industry as well as a new growth driver for
retailers and brands, was the major topic and arose heated
discussions among business leaders today.
At the summit, Dada Group released the "White Paper On Open
On-Demand Retail Platform Model" in collaboration with
China Chain Store & Franchise
Association (CCFA) and JD.com's Consumption and Industry
Development Research Institute. The White Paper offers a
panoramic display of the open platform model of on-demand retail
for the first time in industry.
Seize the Digital Opportunity
Decision makers, digital business leaders and technology
providers of the industry, joined the management teams of Dada
Group and JD.com to give speeches at the summit to elaborate their
insights and predictions of on-demand retail.
Dr. PEI Liang, President of China
Chain Store & Franchise Association, demonstrated:
"On-demand retail is an important part of omni-channel retail. Not
only does it leverage online traffic, but also, through the
integration of existing offline resources, it enables the
cooperation between platforms and offline retailers to achieve a
1+1>2 effect. Offline stores serve as the terminal for order
fulfillment and the terminal for product storage, and, when
empowered by the of on-demand retail model, their value can be
maximized."
Philip Jiaqi KUAI, Founder, Chairman of the Board of
Directors and Chief Executive Officer of Dada Group stated that
from long-distance, and short distance to macro-distance, China's
e-commerce has leapfrogged to set one new milestone after another.
For offline stores, on-demand retail has greatly broadened the
scope of their businesses; for brand owners, on-demand retail
has built a digital marketing and operating ecosystem that
connects online and offline channels; for consumers, on-demand
retail services represent significant improvements in timing,
efficiency and the shopping experience.
HE Huijian, Vice President of JD.com and Dada Group; Head of
the Intra-City Business of JD.com believes that the core of
retail is efficiency and experience. Emerged from both the supply
side and the demand side, on-demand retail is expected to grow
into a trillion-dollar market in 3 to 5 years. JDDJ and Shop
Now will continue to open our capabilities to the industry to
expand the model to various types of offline retailers and brands
via digital upgrades, operation optimization and efficiency
improvement, to bring consumers and partners a faster, better and
more economical shopping experience.
Development path and successful cases
It can be seen from the discussions that the retailers and brand
owners have similarities in terms of demands and challenges when
adopting on-demand retail, which can be further categorized into
two models – self-operated and open platform.
The White Paper finds out that players under the open
platform model, are stronger in terms of breath of product
categories offered, as well as technologies deployed to empower
the offline retailer partners, and drive the digital transformation
of the real economy.
The Report also discussed the development path under the open
platform model and some successful cases. It was a valuable
guide for merchants who strive to seize new growth opportunity in
the Chinese market. For retailers, what is important to them is
omni-channel connection and fulfillment; for brands, their focus is
on interaction with the users and marketing.
Based on the number and growth rate of participating stores, the
White Paper took Supermarkets, Fashion Styles and Home Appliances,
and Consumer Electronics as three major examples to analyze
their development paths from strive to thrive.
- The focuses for Supermarket are traffic, delivery
capabilities and data integration from multiple channels. Traffic
largely determines the potential size of the business, the delivery
capabilities are correlated with order fulfillment, and integrate
data and adopting automated management is the key to improve
efficiency.
- As for Fashion Style and Home Appliance, besides
traffic, the level of digitalization greatly determines how well
the retailers and brands manage their stores and inventories.
- Turning to Consumer Electronics, the products are with
high price tag, a long life cycle and low level of transparency, so
that the consumers depend more on the shopping guide and after-sale
service. Integrating marketing approaches and services on- and
offline will be better satisfy customer's expectations and become
the key brand differentiators in the industry.
As the pioneers and leaders in on-demand retail, JD.com and JDDJ
cooperated with various well-known partners such as Walmart, vivio
and Unilever, and accumulated experiences and insights from the
past 8 years' practices. As the key driver for offline
retailers and brands' omni-channel growth, the cooperation with
JD.com and JDDJ in on-demand retail has been recognized by
partners.
Xiaojing Christina ZHU, President and Chief Executive Officer
of Walmart China, says: "China is one of the largest,
fastest-growing and most competitive consumer markets in the world.
We expect on-demand retail to remain hugely popular here in the
foreseeable future because it enhances the shopping experience for
customers and fits modern lifestyles. As a leading omni-channel
retailer with a 'Customer First' mindset, Walmart China continues
to innovate with our partners around digitalization and end-to-end
efficiency. We look forward to offering more value and a seamless
shopping experience so that our customers can save money and live
better."
"Thanks to on-demand retail, the penetration rate and sales
share in categories such as healthcare, maternal and infant, are
continuing to grow," weighs in Katy CHEN, Managing Director of
Kimberly-Clark China, "on-demand
retail has become a channel that Kimberly-Clark attaches great
importance to, we hope to further optimize and improve our
performance through cooperation and innovation, to promote and lead
the development of personal care and hygiene products in the
on-demand retail market."
Based on the successful cases, the White Paper provides a
methodological sum-up dubbed "On-demand ACE", suggesting a route
to success in on-demand retail. ACE represents the ability,
creativity and experiences required for merchant's development in
early, evolving and breakthrough phases.
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".
About China Chain Store &
Franchise Association
China Chain Store & Franchise
Association (CCFA) is the official representative of retailing
& franchise industry in China.
Currently, there are over 1200 enterprise members with over 460,000
outlets, including domestic & foreign-invested retailers,
franchisers, suppliers, and relevant organizations. The total sale
of CCFA retail members (franchise and food service not included)
was 4.5 trillion CNY in 2020,
accounting for 11.6% of the entire social consumables retail sales.
CCFA functions include: participating in policy making and
coordination, safeguarding the interests of industry and members,
providing a series of professional trainings and industry
information and data for members, and establishing platforms for
exchange and cooperation.
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SOURCE DADA GROUP