Dada Group's JDDJ Highlights Consumption Trends of 2021 Chinese New Year

Rhea-AI Summary

Dada Group (Nasdaq: DADA) reported strong sales trends for its on-demand retail platform, JDDJ, during the 2021 Chinese New Year, reflecting changing consumer behaviors. Notably, orders from outside the city doubled year-over-year, driven by COVID-19 restrictions. Instant food items saw impressive growth, with sales of instant porridge up 5.1 times. Healthy and Western foods also gained popularity, with sales of Ejiao cake rising 4.2 times. Home entertainment purchases surged, as poker sales increased by 2.1 times. Dada continues to be a leader in China's local on-demand market.

Positive

• Orders from outside the city doubled year-over-year.
• Sales of instant food items increased significantly, e.g., instant porridge up 5.1 times.
• Popularity of healthy and Western foods grew, with Ejiao cake sales up 4.2 times.
• Home entertainment products saw a surge, with poker sales up 2.1 times.

Negative

• None.

SHANGHAI, Feb. 17, 2021 /PRNewswire/ -- Dada Group (Nasdaq: DADA) ("Dada" or the "Company"), China's leading local on-demand delivery and retail platform, today announced that JDDJ, the on-demand retail platform of Dada, released its consumption trends of 2021 Chinese New Year. The trends reflect sales data on the platform from February 4 to February 16, which is a traditional holiday in China that typically drives widespread travel as people return home for family reunions.

"In January, Dada Group announced that JDDJ and Dada Now would stay open during Chinese New Year in February. Through these two platforms, we are proud to maintain the highest level of safety, while ensuring trustworthy and efficient services for customers across the country", said Philip Kuai, Founder, Chairman and Chief Executive Officer of Dada Group.

Key consumption trends in 2021 CNY include:

• Online Orders Placed from Another City: This year, due to the COVID-19 pandemic, many residents have chosen to stay home during the festival. Instead of going out, consumers are placing orders for the festivities online to send to family, and Dada's one-hour delivery is streamlining the process. JDDJ's data shows that sales of orders that users placed from a city other than their own has doubled that of the comparable period last year, led by first-tier cities such as Shenzhen and Guangzhou.
• Instant Food for Staying Home: Many consumers who stay home and stay put during this holiday in China, choose to make a meal for themselves in a relaxed and simple way, which drove the online consumption of instant food across the country. According to JDDJ, sales of instant porridge products, functional drinks and instant rice noodle are increased by 5.1 times, 2.8 times, 2.4 times respectively, compared with last year on the platform, while Beijing, Shenzhen, Shanghai, Guangzhou and Hangzhou report the greatest increase in sales of instant food.
• Healthy Style and Western Food: Some healthy and western-style foods have increased in popularity this year. Compared to last year, sales of Ejiao (Donkey-hide Glue) cake increased 4.2 times on JDDJ, while sales of walnut powder increased by 4.1 times and honey 3.1 times. At the same time, sales of brandy, sparkling wine, rum, and pasta are increased by 13.6 times, 11.8 times, 8.8 times and 2.4 times on JDDJ during the Festival.
• Childhood Snacks: With its vision to "Bring People Everything On Demand," Dada is committed to providing on-demand shopping and delivery services to customers with an extensive variety of products across China. During this holiday, marshmallow's sales rose by 3 times compared with the same period last year, while sales of haw flakes, jelly, rice snacks rose by 1.8 times, 1.7 times, 1.2 times year-on-year on JDDJ.
• Home Games and Entertainment: In addition to food products, consumers have also been spending on games and entertainment to enjoy during the festivities. Sales of poker is increased by 2.1 times on the platform, and sales of table games increased by 35 times year-on-year. JDDJ's data shows that consumers in Beijing love playing poker most, mahjong enthusiasts gather in Chengdu, while Shenzhen has the highest sales of table games.

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 consumption trends did Dada Group report for the 2021 Chinese New Year?

Dada Group reported a doubling of orders from outside the city and significant growth in instant food sales and home entertainment products.

How did COVID-19 affect Dada Group's sales during Chinese New Year?

COVID-19 restrictions led to more consumers placing orders online instead of traveling, significantly boosting sales.

What were the notable sales increases reported by Dada Group's JDDJ platform?

Instant porridge sales increased by 5.1 times, and sales of Ejiao cake increased by 4.2 times.

What was the stock symbol for Dada Group when it began trading?

Dada Group began trading on Nasdaq under the stock symbol 'DADA'.