In November, Philip Kuai, Dada Group’s Founder, Chairman and Chief Executive Officer, attended and delivered remarks at China Chain Store & Franchise Association’s (“CCFA”) 2020 China National Retail Congress in Shanghai. In his address, Mr. Kuai discussed how Dada’s model delivers value to retailers, brands and consumers by shaping a new era of local on-demand retail in China. Dada Group (Nasdaq: DADA) (“Dada” or the “Company”) is China’s leading local on-demand delivery and retail platform.
Mr. Kuai’s remarks were titled “Embracing the New Decade: The Age of Micro E-commerce”. He opened with a discussion around the evolution of e-commerce in China and shared insights into Dada’s focus on building a low-cost, highly-efficient logistics infrastructure, expanding the Company’s brand and retailer partnerships and the increasing market potential of online on-demand retail.
“From long-distance to short-distance e-commerce, and now the era of micro e-commerce, the retail landscape in China has been steadily developing for more than 20 years, yet only a small percentage of that activity currently takes place online,” noted Mr. Kuai. “With 80% of retailing activities in China still happening offline rather than online, Dada believes that digitization and the implementation of on-demand delivery are key opportunities to further advance e-commerce in China in the years to come.”
In 2014, Dada founded Dada Now, an open local on-demand delivery platform. Leveraging cutting-edge proprietary technologies and deep insights into the logistics industry, Dada Now has developed into a leading local on-demand delivery platform in China open to merchants and individual senders across various industries and product categories. In 2016, Dada extended its core capabilities from local on-demand delivery to local on-demand retail by acquiring JDDJ, the former local retail platform and a strategic asset of JD Group. JDDJ has since quickly built its reputation by delivering top-notch services to retailers and brand owners and offering high-quality on-demand retail experience for consumers.
As a leading platform for local on-demand retail and delivery, Dada Group is committed to never competing with retailers and brands. Instead, it empowers them as well as its consumers with its smart logistics systems and efficient home-delivery shopping service. Leveraging omni-channel digital solutions, crowdsourcing capabilities and the latest technological advancements, Dada’s lightweight and scalable platform pairs riders with orders, monitors each order in real time and provides quality assurance to the benefit of brands, retailers and customers alike.
“China’s supply chains are highly complex, especially as it relates to the perishable nature of categories such as fresh foods,” Kuai commented. “We’re one of the only platforms in the Chinese e-commerce space that doesn’t have any supply chains or inventory. Instead, we collaborate with supermarkets and other leading retailers that are already managing their inventories well. Because of this dynamic, we effectively empower our retail partners and earn their trust.”
In November, Dada reported strong financial result for the third quarter. Both JDDJ and Dada Now increased their market share year-over-year, a testament to the strength of these unique platforms and the continued opportunities for growth. Additionally, during the 2020 Singles Day Festival in November, Dada Now set a single-day delivery record of 10 million orders and JDDJ’s sales reported on Singles Day more than doubled year-over-year.
Mr. Kuai concluded, “We founded Dada six years ago with a mission to bring people everything on-demand. Since then, Dada has played a critical role in expanding the Chinese online economy and digitizing traditionally offline retail platforms. We firmly believe that the era of micro e-commerce in China is beginning to take hold and we see significant potential to continue transforming the world of e-commerce we know today.”
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.”