• During the “1020 Shopping Festival”, the sales have doubled in supermarkets and convenience stores on Dada-JD Daojia’s platform compared to the same period last year.
October 23, 2019 – Dada-JD Daojia, China’s leading on-demand logistics and omni-channel ecommerce firm, announced on Monday that it has set several new sales records in the “1020 Supermarket Shopping Festival”. The total sales on Dada-JD Daojia’s platform nearly increased by 100% compared with same period last year. While the sales of supermarkets and convenience stores have doubled, the sales in low-tier cities were 4.2 times of last year’s figure.
During the shopping festival, Dada-JD Daojia has also launched the supermarket’s omni-channel fulfillment solutions, which contribute to deal with the current biggest challenge for supermarkets’ digitization – efficient fulfillment of multi-channel orders. The middle platform system developed by Dada-JD Daojia has been rapidly applied in most supermarket chains like Aeon and Huaguan in China. Besides, the solutions integrating warehousing, picking and distribution are proven to significantly improve supermarkets’ working efficiency and guarantee one-hour delivery of omni-channel orders.
At the same time, the Hurun Research Institute released the inaugural Hurun Global Unicorn List 2019 on late Monday, a ranking for non-public world’s billion-dollar tech ‘start-ups’ founded in the 2000s. Dada-JD Daojia ranked 57th of 494 unicorns with 6th in logistics firms, continuing to spark with high popularity in grocery and delivery sector.
Rapid sales growth in supermarkets and low-tier cities
As the China’s biggest shopping festival interacting online and offline supermarket retails, Dada-JD Daojia together with more than 100,000 retail outlets and over 200 supermarket chains in China were dedicating themselves to provide more convenient and upgraded shopping experience for goods of all varieties to consumers covering 133 cities in China.
Dairy, vegetables, paper, fruits, grain and oil have become the most popular supermarket products during the one-week shopping festival, held from October 14th to October 20th. While festival supplies, auto products, small appliances, textile and maternity products are the TOP 5 categories of the quickest retail growth.
The sales of supermarket and brand partners on Dada-JD Daojia’s platform also achieved rapid growth in 1020 shopping festival. Walmart’s sales were double compared to sales of same period last year, Yonghui grew by 3.1 times, Vanguard increased by 5.4 times, and 7 FRESH by 4.1 times. Meanwhile, the total sales of Unilever’s products increased by 1.26 times. The sales of Huamu Planet laundry detergent, a new product of Unilever, increased by 3.5 times compared with the same period in September, while the sales in low-tier cites increased by 1220% month-on-month.
Along with Dada-JD Daojia expanding to the small and medium-sized cities, consumers in lower-tier markets released their accumulated purchasing power in local retail sales. Among the 133 cities, the number of tier 3-6 cities accounted for 2/3, and their sales increased by 4.2 times compared with last year. The consumption has doubled in nearly half of the tier 3-6 cities compared with third quarter. Namely, the low-tier markets are proven to have extremely strong rising potential in “one-hour shopping”.
The rise of consumption in local retail has become a new area of focus during the “1020 shopping festival”. While consumers are concentrating more on efficiency and convenience in their consuming pattern and lifestyle, retailers are evolving omni-channel platforms through online and offline. Both helps the mainstream consumption pattern “one-hour shopping” trend expanding rapidly in all regions, all categories and all customers.
The first supermarket’s omni-channel fulfillment solutions
People ordering by mobile phones and waiting at home for one-hour delivery has become a daily routine in both Beijing and Shanghai, also in tier 3-6 cities. According to the National Bureau of Statistics, online retail sales amounted to only 9 trillion yuan in 2018 while China’s retail sales exceeded 38 trillion yuan.
At this stage, the local retails have become a new battleground for many e-commerce firms and retail outlets. Both the national supermarket chains and regional retail outlets are accelerating their online layout and strengthening their omni-channel abilities. However, the “one-hour delivery” is difficult especially for supermarkets to guarantee full and complete contract performance for all orders from multi-channels.
With the kick-off of “1020 shopping festival”, Dada-JD Daojia has first launched the supermarket’s omni-channel fulfillment solutions, providing the middle platform systems, smart logistics systems and customized solutions integrating warehousing, picking and distribution satisfying the needs of omni-channel order fulfillment.
The middle platform system has the capacity to support order fulfillment from multiple channels, while the integrated solution provides different solutions to match the different modes of pre-warehouse, in-store warehouse and offline store according to their actual situation. The smart logistics system helps the stores to quickly work out after receiving the omni-channel orders with smart path planning.
With peak order volume in 1020 shopping festival, the supermarket’s omni-channel solutions achieved a remarkable business success. Stores with in-store warehouse solution had dramatically increased its contract performance while the picking time reduced to 10 minutes, and the picking time for offline store solution reduced to 12 minutes. Dada-JD Daojia’s delivery efficiency was 25.8% higher than July’s figure.
Rupert Hoogewerf, Chairman and Chief Researcher of Hurun Report, commented on the Hurun Global Unicorn List 2019 and 494 unicorns represented by Dada-JD Daojia, “these young companies, only seven years old on average, are the world’s most exciting start-ups, leading a new generation of disruptive technology.”
About Dada-JD Daojia
Dada-JD Daojia is China’s leading on-demand logistics and omni-channel ecommerce platform. “Dada”, the local on-demand logistics platform, covering more than 450 major cities across China. It serves over 1.2 million merchants and 70 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 100 cities across China. JD Daojia has more than 74 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, and Walmart, etc.