BEIJING, Sept. 5,
2022 /PRNewswire/ -- As the only on-demand
retail industry representative at the New Digital Consumption Forum
of the China International Fair for Trade in Services (CIFTIS) in
Beijing this year, General Manager
of JDDJ Mr. Changming Li gave a
speech to discuss how JDDJ supports real economy and boosts
consumption as an on-demand retail platform.
"In the next few years, on-demand retail will grow explosively
and become the megatrend," Li stated. "On-demand retail is the new
driver for the high-quality development of the real economy. As a
player under the on-demand open platform model, JDDJ is leveraging
digital capabilities and delivery infrastructure, to accelerate the
digitalization of traditional retail."
New model, new growth
More consumers are embracing on-demand retail. In July, a report
about China's online retail market issued by the Ministry of
Commerce mentioned "on-demand retail" for the first time, and
recognized its value in integrating offline and online retail.
Meanwhile, 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 demonstrated that on-demand retail, which is an
important part of the to-home business segment within China's
overall O2O market, is ushering in a phase of rapid growth. It is
estimated that by 2025, the size of the open on-demand retail
platform model will exceed the trillion-yuan threshold, reaching
about 1.2 trillion yuan and becoming
an important component of the to-home business.
During this year's 618 Grand Promotion, JDDJ and Shop Now
engaged over 150,000 brick-and-mortar stores across over 1,700
cities and counties in China to
provide consumers with products of all categories and a faster and
more convenient shopping experience, making on-demand retail a key
driver for offline retailers and brands' omni-channel growth. The
sales on both platforms increased by 77% year-on-year, with the
number of consumers buying through Shop Now this year during the
promotion increasing by over 400% compared to the same period last
year.
Traditional retailers' digitalization
Li pointed out that the core components of on-demand retail are
still efficiency and experience, in line with traditional retail.
The on-demand retail model connects the offline and online,
requiring more efficient coordination among platforms, retailers
and brand owners. An increasing number of physical retailers now
realize the importance of on-demand retail, while facing the
difficulties of transformation.
Based on seven years of experience, JDDJ's digital solutions for
on-demand retail are maturing, including traffic operation,
products management, fulfillment and digital tools, facilitating
traditional retailers and brand owners' entry into the on-demand
arena.
Taking CR Vanguard as an example, through its cooperation with
JDDJ, its online sales increased by 2.2 times in 2020 compared with
2019. The marketing campaign "Super Merchant Day", jointly created
by JDDJ and CR Vanguard, drove an over 200% increase
month-over-month in sales.
In the past six years, JD.com has transformed from an e-commerce
business into a supply chain-based technology and service provider.
It also emerged resiliently from the COVID disruptions with a
strong sense of responsibility to create not only business and
industrial values, but also social values with its infrastructure
and digital know-how, contributing to society's higher efficiency
in production, circulation, consumption, services and more. In
doing so, JD.com has been devoted to the knitting together and
fusion of three networks, including a transaction network that
covers around-the-clock omni-channel shopping scenarios, a
warehousing and distribution network that serves nationwide and
extends globally, and a service network that is enabled by
intelligent technologies, with partners across a variety of
industries that are conducive to the development of the real
economy.
As the on-demand retail business in JD's ecosystem, JDDJ deeply
links various physical retail stores, playing an important role in
the product transaction network to improve the overall efficiency
of goods picking and delivery.
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SOURCE DADA GROUP