Walmart China and Dada Group's JDDJ Expand Collaboration on Omni-Channel Customer Digitalization

Rhea-AI Summary

Walmart China and Dada Group (DADA) have enhanced their partnership to boost omni-channel customer digitalization, launching an exclusive VIP program on JDDJ. This program aims to improve customer engagement and identify high-value customers through refined digital operations. Notably, VIP customers placed 2.7 times more orders than ordinary ones during a promotional event, showcasing the program's effectiveness. Both companies plan to expand VIP benefits and customer reach in the future, solidifying their positions in the digital retail space.

Positive

• VIP program led to VIP customers placing 2.7 times more orders than regular customers.
• VIP customers exhibited a threefold increase in expenditure growth rate during promotional campaigns.
• Expansion of collaboration enhances customer digitalization and engagement strategies.

Negative

• None.

SHANGHAI, April 12, 2021 /PRNewswire/ -- Walmart China and Dada Group (Nasdaq: DADA) ("Dada"), China's leading local on-demand delivery and retail platform, today announced that they have expanded their collaboration with a focus on omni-channel consumer digitalization. Specifically, they have jointly launched the exclusive VIP program for customers of Walmart stores on JD Daojia ("JDDJ"), the on-demand retail platform of Dada Group. This is a pioneering effort for Walmart stores to promote its customer digitalization, and for JDDJ to improve targeted digital operations of users.

Customer digitalization is a key part of Walmart China's digital transformation strategy and Walmart China stores aim to provide diversified product offerings and superior shopping experiences for its tens of millions of digital customers, based on optimizing technology innovation and close collaborations with O2O platform. Meanwhile, as China's largest local on-demand retail platform in the supermarket segment, JDDJ focuses on supporting retail partners in digital transformation, promoting digital innovation practices, and further strengthening empowering capabilities and its leading position. In July 2019, Walmart China and Dada Group jointly launched the exclusive VIP service for customers of Walmart stores on JDDJ's platform. As of September 2020, Walmart China made the VIP program available in over 400 stores across China.

"We hope to explore refined operation of hypermarket's digital customers through close collaboration with JDDJ," said Jingyang Xu, Chief Technology Officer of Walmart China. "It improves customer engagement and accumulates our digital assets. On the other hand, we could accurately identify high-value omni-channel customers and provide them with more considerate services, so that they can enjoy more convenient shopping experience at Walmart stores."

"Leveraging cutting-edge proprietary technologies, Big Data and previous experience in user operations, Dada Group has collaborated with Walmart China to develop the refinement operation plan for Walmart stores' VIP consumers on JDDJ and achieved the functional support including user portrait, hierarchical operations, targeted coverage, and VIP benefit operations," said Huijian He, Vice President of Dada Group.

To celebrate 8.8 Omni-channel Shopping Festival in 2020, Walmart China launched the VIP Week Campaign on JDDJ's platform. During the promotional week, the number of Walmart stores' exclusive VIP customers soared to hundreds of thousands. According to JDDJ's data, the orders placed by Walmart stores' VIP customers were 2.7 times of ordinary customers. As for expenditure growth rate during 8.8 shopping festival, Walmart stores' VIP customers were 3 times than ordinary customers on JDDJ. "It has proved that the value of VIP customer operation was recognized by valuable omni-channel customers, increasing overall sales to drive healthy growth," added Mr. He.

"In terms of digital operations of omni-channel customers, Walmart China and JDDJ are at the forefront of the industry. The differentiated VIP program of Walmart stores contributes to identifying and managing high-value customers, and developing exclusive customer groups," said Jianzhen Peng, Secretary General of China Chain Store & Franchise Association, China's national representative for the retail and franchise industry.

In the future, Walmart China and Dada Group will further develop omni-channel customers on JDDJ, expand the scale of VIP customers, and increase VIP benefits to provide better shopping experience.

About Walmart China

Walmart entered the Chinese market and opened its first Walmart store and Sam's Club in Shenzhen in 1996. Walmart established its global sourcing office in Shenzhen in 2002. Walmart operates different formats and brands in China including Walmart stores and Sam's Club. Since entering into China, Walmart has donated approx. RMB160 million worth of fund and goods to philanthropy programs, and Walmart China associates have devoted 240,000 voluntary hours. Walmart won numerous awards including "the best employer", "the most satisfied retailer by suppliers" and has ranked the top company on the Fortune 500 List of Companies for several years.

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 is the significance of the Walmart China and Dada Group collaboration?

The collaboration focuses on omni-channel customer digitalization, enhancing customer engagement and digital operations.

What are the key features of the new VIP program launched by Walmart and Dada?

The VIP program offers enhanced services and benefits to high-value customers on JDDJ, significantly improving their shopping experience.

How did VIP customers perform compared to ordinary customers during the promotional campaign?

During the promotional campaign, VIP customers placed 2.7 times more orders and had a threefold higher expenditure growth rate.

When was the VIP program first introduced by Walmart China and Dada Group?

The VIP program was initially launched in July 2019.

What future plans do Walmart China and Dada Group have for their collaboration?

They plan to expand the scale of VIP customers and enhance VIP benefits for better shopping experiences.