Sam’s Club and JD Daojia recently announced that cloud depots jointly built by both sides have achieved great success. For mature depots, the annual sales per square meter posted ten times as big as the equivalent of general supermarkets. Currently covering Shenzhen, Shanghai and Beijing, such cloud depots are expected to pick up in 2019 by expanding into more cities and connecting consumers with quality products through 1-hour delivery service.
Rooted in China for 23 years, Sam’s Club has always been renowned by providing high quality items and exceptional member service. Leveraging its robust supply chain and global sourcing network, Sam’s Club has been able to offer differentiated items sourced both from home and abroad. In particular, fresh product category is at the core of its advantage – owing to its high safety and nutrition standards. Its fresh items won tremendous recognition from members.
The jointly efforts between Sam’s Club and JD Daojia to build cloud depots cater to consumers’ instant needs of fresh items and therefore, further enhances users’ shopping experience. Located in areas, where targeted members reside, a depots usually store over 1,000 deliberately-selected items, including the bestselling ones, such as the ‘fresh’, ‘mom & baby’ and personal care categories. After an order is placed on Sam’s Club APP or JD Daojia platform, riders from Dada will deliver the order within an hour. In order to preserve freshness, Dada packs each frozen item individually with tailored ice-filled strips that are fully recyclable. Well-placed in a thermal insulation container, such packaging ensures a refrigeration duration of up to 4 hours – effectively safeguards the quality of frozen fresh items. This new service ignites member interaction, and as a result, boosts shopping frequency by as high as 60%.
In addition, Sam’s Club also managed to acquire new members on JD Daojia platform, where non-Sam’s Club would convert to its membership after purchasing high-quality items from the Sam’s Club.
“The success of our ‘physical club + cloud depot’ model testifies the inseparable relation among quality, efficiency and cost control. Sam’s Club will constantly optimize its omni-channel strategy by bringing more depots into our strategic cities and providing quality items through efficient delivery service. Sam’s Club and JD Daojia will collaborate together to strengthen our competitive core and take this business model to the next level,” said Zhiyu Chen, Senior Vice President of Sam’s Club.
“The collaboration between JD Daojia and Sam’s Club allows us to complement each other and integrate our competencies. This is of profound strategic significance. With the increasing needs for high-quality fresh items online, we are able to jointly improve service coverage and fulfillment efficiency,” said Philip Kuai, CEO of Dada-JD Daojia.
About Sam’s Club
Sam’s Club is a chain of high end membership-only clubs under Walmart Family, which is the Top 500 global company — Walmart Inc., named by the retail giant Mr. Sam Walton, founder of Walmart. Since the first Sam’s Club opened in Midwest City in Oklahoma State in April of 1983, Sam’s Club has a history over 30 years. At the beginning of 90’s, Sam’s Club starts to enter international market and has become one of the largest membership clubs around the world. At the present, Sam’s Club has developed 800 chain clubs globally and provides superior service to over 50 million individual members and business members. The first Sam’s Club in China was opened in Shenzhen on August 12, 1996. So far, Sam’s Club has developed a total of 23 clubs in China which are located in Beijing, Shanghai, Shenzhen, Guangzhou, Fuzhou, Dalian, Hangzhou, Suzhou, Wuhan, Changzhou, Zhuhai, Tianjin, Xiamen, Nanjing, Changsha, Nanchang, Chengdu, Shenyang and Nantong. In the future, Sam’s Club will continue to expand investment in China, bringing quality life to more and more Chinese families.
About Dada-JD Daojia
Dada-JD Daojia is China’s leading on-demand logistics and online to offline (O2O) e-commerce platform. “Dada”, the local on-demand logistics platform, operates a network of 5 million registered delivery men, covering more than 450 major cities across China. It serves over 1.2 million merchants and 50 million individual users, with 10 million peak daily orders. “JD Daojia”, the O2O e-commerce platform, partners with over 100 thousand leading retail stores, providing one-hour delivery service of fresh fruits and vegetables, groceries, flowers, baked goods and pharmaceutical products to the homes of its users in more than 63 cities across China. JD Daojia has more than 70 million registered customers and 30 million monthly active users.
Dada-JD Daojia was originally established in 2014, and has raised $1.3 billion from global leading investors including Sequoia, DST, JD, Walmart, etc.