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Dada Group's JDDJ Announces New Partnerships with More Than 20 Leading Regional Supermarket Chains in China

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Dada Group (Nasdaq: DADA) announced significant geographic expansion of its JD Daojia (JDDJ) platform into lower-tier markets by partnering with over 20 regional supermarket leaders. This initiative strengthens its market share, now collaborating with over two-thirds of China's top 100 supermarket chains. By September 2020, JDDJ covered approximately 1,200 cities, enhancing the delivery experience through its integrated services. The push aims to address the local on-demand retail market's growth potential, focusing on digital empowerment for supermarkets like Ouya and Zhenhua.

Positive
  • Expanded partnerships with over 20 regional supermarket chains.
  • Dominates the supermarket O2O market share in China.
  • JDDJ's service reaches approximately 1,200 cities, enhancing market presence.
  • Strengthened existing relationships with major retailers like Walmart.
Negative
  • None.

SHANGHAI, Jan. 15, 2021 /PRNewswire/ -- Dada Group (Nasdaq: DADA) ("Dada" or the "Company"), China's leading local on-demand delivery and retail platform, announced that Dada's local on-demand retail platform, JD Daojia ("JDDJ") has accelerated its geographic expansion into lower-tier markets and established new partnerships with more than 20 regional supermarket leaders including Ouya Supermarket, Zhenhua Supermarket, Sanhe Supermarket, Zhebei Supermarket, Guihe Supermarket and Sifang Street in late 2020.

With the formation of these agreements, JDDJ have established partnerships with more than 2/3 of the Top 100 supermarket chains in China. In addition to signing new partnerships in 2020, JDDJ also strengthened existing partnerships with other leading retailers and grocers including Walmart, Yonghui Supermarket and CR Vanguard. JDDJ ranks first in market share for supermarket O2O platforms in China and has helped consumers across the country enjoy quality products and reliable one-hour delivery services.

JDDJ's posters at a Zhenhua Supermarket

Huijian He, the Vice President of Dada Group, said, "The lower-tier market has become a major growth driver and an important part of our development strategy for JDDJ. The platform will continue to accelerate business expansion into lower-tier cities and establish partnerships with more of China's top supermarkets and regional leaders to jointly develop the local on-demand retail market, bringing one-hour delivery to more consumers in lower-tier cities."

As of September 30, 2020, JDDJ's local on-demand retail service covered approximately 1,200 cities and counties in China, and Dada Now, the local on-demand delivery platform, served more than 2,600 cities and counties. Leveraging its retail, logistics and digital empowerment capabilities, Dada Group has promoted digital transformation, empowering supermarkets and other retailers to help them achieve online-offline integration and improve sales. Since partnering with Dada in 2020, Ouya and Zhenhua have benefited greatly from their collaboration with Dada:

  • Ouya Supermarket: Dada's Haibo system has also offered Ouya omni-channel digital solutions that integrate product management, user operation, fulfillment optimization, marketing events, and data boards. Moreover, Ouya's membership service was launched on the JDDJ platform to synchronize the benefits of online and offline membership. To date, Ouya locations in Changchun, Jilin Province, have been integrated into JDDJ platform.
  • Zhenhua Supermarket: Dada and Zhenhua have collaborated on multiple initiatives including marketing events and product management. To date, Zhenhua's stores in Qingdao and Yantai have been integrated on JDDJ and all stores in the Shandong Province, including those in Liaocheng, Weihai, Weifang, Linyi and Dongying, as well as stores in Hebei Province will launch on the platform by mid-2021.

Yuehua Shi, the General Manager of Zhenhua Supermarket, said, "Digitization is the prevailing trend of Chinese retail. Through JDDJ's digital empowerment capabilities, Zhenhua Supermarket will further enhance its marketing campaign and product management, acquiring online users and achieving rapid growth through O2O channels. With our deep expertise in the market of Shandong Province, Zhenhua Supermarket looks forward to working with JDDJ to develop the local market and provide consumers with a more convenient on-demand shopping experience."

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."

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SOURCE Dada Group

FAQ

What recent partnerships has Dada Group formed?

Dada Group has partnered with over 20 regional supermarket leaders to expand its JD Daojia platform.

How many supermarket chains does JD Daojia partner with?

JD Daojia has partnerships with more than two-thirds of the top 100 supermarket chains in China.

What is Dada Group's market strategy?

Dada Group is focusing on expanding its local on-demand retail platform into lower-tier markets.

What is the geographic coverage of JD Daojia as of September 2020?

As of September 30, 2020, JD Daojia's service covered approximately 1,200 cities and counties in China.

What is the ticker symbol for Dada Group?

Dada Group trades on the Nasdaq under the ticker symbol 'DADA'.

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