Dada Group Closes 618 Shopping Festival with Record Sales

Rhea-AI Summary

Dada Group (Nasdaq: DADA) reported record sales during the 2020 618 Shopping Festival, achieving a 138.8% increase in JDDJ's sales compared to 2019. The Festival, held from June 6 to June 19, featured partnerships with major retailers like Walmart and Yonghui. JDDJ expanded its delivery services to over 20 lower-tier cities. Orders on Dada Now increased by 73.4% during the Festival, with 3.2 million orders delivered on June 18. Additionally, sales in Beijing rose by 85% amid the COVID-19 pandemic, highlighting Dada's vital role in online retail.

Positive

• Record sales increase of 138.8% for JDDJ during the Festival compared to 2019.
• Expansion of one-hour delivery service to over 20 lower-tier cities in June.
• Dada Now orders increased by 73.4% during the Festival.
• Over 3.2 million orders delivered on June 18.
• Sales in Beijing rose by 85% during the Festival.

Negative

• None.

SHANGHAI, June 19, 2020 /PRNewswire/ -- Dada Group (Nasdaq: DADA) ("Dada" or the "Company"), China's leading local on-demand delivery and retail platform, today announced record sales during the 2020 618 Shopping Festival (the "Festival"), China's major mid-year online shopping event, held from June 6^th to June 19^th on the Company's platforms.

During the Festival, JDDJ, the Company's local on-demand retail platform, partnered with top-tier retail brands such as Walmart, Yonghui, CR Vanguard, AEON, BBK, Lotus, Bailian Group and Olé, to run sales promotions on the platform. JDDJ's sales from June 6^th to June 14^th increased by 138.8% compared to the same period in 2019 and the platform expanded its one-hour e-commerce service to more than 20 lower-tier cities in June, including Yan'an in Shaanxi Province, Erdos in Inner Mongolia and Linfen in Shanxi. JDDJ held several livestreaming e-commerce events during the Festival, offering customers goods across sectors including food, medicine, digital products, flowers, fruits, beauty products and more with its one-hour delivery service. To close the Festival, JDDJ hosted a 7-hour live broadcast show on June 18^th,  and the first order was delivered to an audience member just 12 minutes after the show began.

JDDJ also partnered with JD to expand the range of goods and services offered through the Omnichannel Fulfillment program. Hundreds of merchants and more than 15,000 stores on JDDJ's platform integrated into JD.com during the Festival, helping JD achieve one-hour delivery service in 160 cities. Through the partnership between JDDJ and JD.com, retailers were able to obtain more online traffic and boost online sales. Additionally, JDDJ cooperated with more than 2,400 offline mobile phone stores, including Apple, Huawei and JD stores as well as Dixintong, to offer mobile phones to consumers in 131 cities across the country with its one-hour delivery service. Mobile phone sales increased 7.3 times on June 18^th compared to the average daily sales in January.

Dada Now, the Company's local on-demand delivery platform, partnered with JDDJ, JD.com and other retailers to meet increased demand during the Festival. Orders on the delivery platform from June 1^st to June 14^th increased by 73.4% compared to the same period in 2019. More than 3.2 million orders were delivered between 10 AM and 2 PM on June 18^th.  

"We are excited to announce our strong performance during the 618 Shopping Festival just days after our sixth birthday and following our successful listing earlier this month on the Nasdaq Stock Exchange," said Philip Kuai, Founder, Chairman and Chief Executive Officer of Dada Group. "With strong momentum in the first half of the year, we are well positioned to further build our reputation as China's leading on-demand retail and delivery platform. Our services continue to play a vital role in the Chinese economy and the response to the ongoing COVID-19 pandemic. We will continue to use our technological and innovation capabilities to enhance our efficiency and deliver high-quality service people across the country."

During the COVID-19 outbreak in the first half year of 2020, Dada Group experienced an increase in demand for its services as more people shopped for daily necessities, including groceries, fresh produce, healthcare and household products, online. This has accelerated customer adoption across its platforms and Dada continues to see strong demand in large and smaller cities alike. In response to a new surge of COVID-19 cases in Beijing reported during the Festival, Dada announced the launch of several new emergency procedures. Since June 14^th, JDDJ has partnered with Walmart, Yonghui, CR Vanguard and other supermarket chains to establish the "Daojia Secured Sourcing Alliance," which works to ensure a sufficient supply of goods, stabilized prices and guaranteed secure delivery services in Beijing. Sales in the city from June 12^th to 18^th increased 85% compared to the same period last year. The Company is focused on continuing to play an essential role in helping people across the country get everything on demand.

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.

Media Contacts:

Dada Group
E-mail: PR@imdada.cn

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

View original content to download multimedia:http://www.prnewswire.com/news-releases/dada-group-closes-618-shopping-festival-with-record-sales-301080447.html

SOURCE Dada Group

FAQ

What were Dada Group's sales figures during the 2020 618 Shopping Festival?

Dada Group reported a record sales increase of 138.8% for JDDJ during the Festival compared to 2019.

What new services did Dada Group introduce in June 2020?

Dada Group expanded its one-hour delivery service to over 20 lower-tier cities in June 2020.

How did Dada Now perform during the 2020 618 Shopping Festival?

Orders on Dada Now increased by 73.4% compared to the same period in 2019.

What was the delivery volume on June 18, 2020, for Dada Group?

Dada Group delivered over 3.2 million orders on June 18, 2020.

How did sales in Beijing change during the 618 Shopping Festival?

Sales in Beijing increased by 85% from June 12 to June 18, 2020, amid COVID-19.