On September 18, Nestlé (China) Co., Ltd. and Dada Group, a leading local on-demand retail and delivery platform in China, announced that they have expanded their partnership to collaborate on a new data-driven retail model for Nestlé, which is building its presence in new markets using JDDJ, the local on-demand retail platform of Dada Group. Philip Kuai, Founder, Chairman and CEO of Dada Group, and Rashid Aleem Qureshi, Chairman and CEO of Nestlé Greater China, signed a new joint business plan in Beijing.
“Nestlé is an important partner of JDDJ,” said Mr. Kuai. “As we continue to innovate our user experience and expand our product categories, we look forward to partnering with Nestlé to create a new and improved, data-driven retail model that allows them to maximize their market potential on our platform. We will help Nestlé grow sales numbers, enhance marketing capabilities and develop user operations, improving Nestlé’s market share and penetration in the growing online economy in China.”
“Nestlé has always been focused on its customers and optimizing the efficiency of its supply chain through big data, blockchain and other technologies,” said Mr. Qureshi. “While digital tools offer plenty of transformative opportunities and challenges, joint ventures and partnerships are play a key role in our success. I am confident that Nestlé and Dada Group will work together to implement a new data-driven retail model so that our users can have a more efficient and convenient shopping experiences than ever before.”
Nestlé and JDDJ’s partnership first began in June 2019, and Nestlé’s sales on the platform have grown rapidly ever since. By August 2020, the number of stores carrying Nestlé products through JDDJ was 4.4 times greater than in August last year. In addition, the number of SKU products sold in all stores increased by 3.4 times compared to the same period in 2019. In addition, from January to August 2020, Nestlé’s dried food sales increased by 127% year-over-year.
JDDJ has the highest sales numbers out of Nestlé’s O2O platforms, making it an important partner for Nestlé. While partner brands benefit from increased reach and sales, the expected brand offerings boosts Dada Group’s own credibility, helping to consolidate its leading position in the market. At the signing, Nestlé was given offered the title “category captain” for its strong numbers in the coffee and adult milk powder segment, which highlights the brand’s importance on the JDDJ platform.
Meanwhile, at the signing ceremony, Nestlé awarded JDDJ the “2020 Best O2O Partner” title, as JDDJ has become the O2O platform with the highest percentage of sales for Nestlé.
As a leading local on demand retail platform in China, JDDJ has built a brand marketing ecosystem based on O2O channels, which is a closed-loop marketing system for everything from branding to sales. In terms of marketing, JDDJ has created a number of original marketing campaigns such as “Super Brand Day,” “Super Fan Day,” “Couple Day” and “New Product Festival,” driving the normalization of O2O platforms and overall brand credibility.
To help brands enhance their extensive marketing power in O2O channels, JDDJ provides retailers tools to extend their brands’ digital user base. In addition, through daily marketing campaigns such as brand coupons and sales events, JDDJ enhances brands’ O2O channels so that they can fully take advantage of the integration of products. JDDJ’s Monica and Haibo systems provide big data to support decision-making, enhance omni-channel efficiency and develop more tailored marketing solutions. In addition, based on its proven lower-tier market strategy, JDDJ’s service will cover more counties and cities in the near future, allowing them to establish relationships with more leading regional retailers, and work with Nestlé to continue growing into lower-tier markets.