Dada Group and CR Vanguard Expand Strategic Partnership to Further Enhance Retail Offering

Rhea-AI Summary

Dada Group (Nasdaq: DADA) has expanded its strategic partnership with China Resources Vanguard (CR Vanguard) to enhance omni-channel fulfillment and marketing strategies. The agreement was signed at Dada's Shanghai headquarters, marking the continuation of a collaboration that began in 2018. More than 1,600 CR Vanguard stores are now integrated with Dada's JDDJ platform, contributing to a sevenfold increase in sales in 2019. Initiatives include improved fulfillment solutions and a new membership program that saw a 14.6x increase in members in two months.

Positive

• Expanded strategic partnership with CR Vanguard to enhance omni-channel fulfillment.
• More than 1,600 CR Vanguard stores integrated into JDDJ, indicating strong growth.
• Sevenfold increase in CR Vanguard's sales in 2019 compared to 2018.
• 14.6 times increase in membership for CR Vanguard's program on JDDJ in two months.

Negative

• None.

SHANGHAI, July 24, 2020 /PRNewswire/ -- Dada Group (Nasdaq: DADA) ("Dada"), China's leading local on-demand delivery and retail platform, and China Resources Vanguard ("CR Vanguard"), China's largest supermarket chain enterprise group, today announced that they have expanded their strategic partnership, with a focus on omni-channel fulfillment, product management, user operation and marketing. To commemorate this milestone, Philip Kuai, Founder, Chairman and CEO of Dada Group, and Hui Xu, General Manager of CR Vanguard, signed a new partnership agreement at a ceremony at Dada's Shanghai headquarters.

With a vision to "Bring People Everything On Demand," Dada Group operates through two complementary business platforms - Dada Now and JDDJ. Dada's marketplace model provides retailers with technology-enabled solutions to improve efficiency and consumers with a broad product selection and convenience. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA."

CR Vanguard is an excellent retail chain enterprise group that is part of CR Group, a Fortune Global 500 enterprise. It owns several famous brands, such as CR Vanguard, Suguo, Ole', blt, V+, Tesco express, and V>nGO, among others. Earlier this month, CR Vanguard was ranked first on the China Chain Store & Franchise Association's list of the "Top 100 Chinese Supermarket Chains in 2019." Nearly 60 supermarkets included on the list have partnered with JDDJ, Dada's local on-demand retail platform.

The two companies initially established a comprehensive partnership in 2018 and have achieved significant momentum with more than 1,600 CR Vanguard stores having been integrated into JDDJ. Since the partnership began, CR Vanguard's sales have grown rapidly, with a sevenfold increase in 2019 compared to 2018, and the company recently set a record for single-day sales on July 18^th, 2020 on JDDJ.

Dada and CR Vanguard have and will continue to work together to strengthen the companies' omni-channel retail and fulfillment solutions, delivery services, products and technology, while enhancing the overall user experience. Initiatives include:

• Fulfillment: JDDJ provides CR Vanguard with integrated fulfillment solutions, including full warehouse, half warehouse, and store warehouse, to promote performance efficiency and reduce picking costs. Additionally, Dada Now, Dada Group's local on-demand delivery platform, provides omni-channel delivery services to CR Vanguard's stores, including on-demand and intra-city delivery services.
• Products: JDDJ's smart product assortment and inventory management system will improve the efficiency of product operations and expand the reach of CR Vanguard's platform.
• User Base: CR Vanguard launched its first membership program on a third-party platform on JDDJ in April, and the number of members has increased by 14.6 times in the past two months.
• Marketing: JDDJ and CR Vanguard will work in tandem to create an annual Omni-channel Shopping Festival. CR Vanguard will support the event with more products, brands, and online to offline promotional resources.

"This expanded partnership is a testament to all the successes we have achieved together over the past two years as well as our confidence in the many opportunities for collaboration ahead," said Mr. Kuai. "We recognize the impact improving efficiencies, reducing costs, and expanding user base can have for our partners and we are excited to continue to advance how CR Vanguard serves its customers. Together, we will build on the impressive momentum in the business as we find innovative solutions to better meet consumers' on-demand needs and drive value for all of our stakeholders."

"Dada Group has been an invaluable partner in the development and expansion of CR Vanguard's online retail presence and digital capabilities," said Mr. Xu. "As we continue to develop our online to offline offerings, we look forward to leveraging the many insights we've gained through our partnership over the last two years for the benefit of Chinese consumers."

By prioritizing strategic partnerships, JDDJ has become a leading on-demand retail platform in China, working with prominent retailers to deliver digital solutions and grow their online sales. JDDJ covers more than 700 cities and counties across China, has over 89,000 stores on its platform and more than 27.6 million active users. In 2019, JDDJ was the largest local on-demand retail platform in the supermarket segment by GMV according to iResearch. JDDJ's rapid growth has continued in 2020, including during the COVID-19 pandemic as customers are increasingly shopping for daily necessities such as groceries, fresh produce, healthcare, and household products online.

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.

About CR Vanguard

CR Vanguard is an excellent retail chain enterprise group that is part of CR Group, a Fortune Global 500 enterprise. It owns several famous brands, such as CR Vanguard, Suguo, Ole', blt, V+, Tesco express, and V>nGO, among others.

Media Contacts

Dada Group
E-mail: PR@imdada.cn

Joele Frank, Wilkinson Brimmer Katcher
Ed Trissel / Kate Thompson / Julia Sottosanti
Phone: 212-355-4449
E-mail: kthompson@joelefrank.com

CR Vanguard
E-mail: ppglb@crv.com.cn

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SOURCE Dada Group

FAQ

What is the significance of Dada Group's partnership with CR Vanguard?

The partnership aims to enhance omni-channel fulfillment and marketing efforts, driving increased sales and efficiency.

How many CR Vanguard stores are integrated into Dada's JDDJ platform?

Over 1,600 CR Vanguard stores are now integrated into the JDDJ platform.

What sales growth did CR Vanguard experience in 2019?

CR Vanguard achieved a sevenfold increase in sales in 2019 compared to 2018.

How much did CR Vanguard's membership increase on JDDJ?

CR Vanguard's membership program saw a 14.6 times increase in the past two months.

When did Dada Group begin trading on Nasdaq?

Dada Group began trading on the Nasdaq Global Market in June 2020 under the ticker symbol DADA.