Further Enhancing its Position as the Leading Local On-Demand Retail Platform
Signs Updated Cooperation Agreements with PepsiCo, Mars Wrigley, Nestlé, Yili and Mengniu in Third Quarter
Continuing to Offer a More Convenient Purchasing Experience to Chinese Consumers
Shanghai, October 13, 2020 – Dada Group (Dada Nexus, NYSE: DADA) (“Dada” or “The Company”), China’s leading local on-demand delivery and retail platform, is pleased to announce that it has expanded its previously established strategic partnership agreements with five prominent, category-leading brands in the third quarter of 2020. Through these enhanced agreements, JDDJ, Dada’s local on-demand retail platform, will partner with PepsiCo, Mars Wrigley, Nestlé, Yili and Mengniu to further promote innovative, customized marketing strategies for each brand and provide a more convenient purchasing experience for Chinese consumers.
Representing various industries across the food and beverage space, with Mars and PepsiCo producing snacks and sweets internationally, Nestlé processing food and drinks internationally, Yili and Mengniu focused on dairy products in Asia, each partner has seen significant online retail growth with the support of JDDJ’s platform and its revolutionary one-hour delivery service through Dada Now, Dada’s local on-demand delivery platform. For instance, during its cooperation with Dada over the past three years, PepsiCo’s sales on JDDJ have consistently maintained a high growth rate and in the first half of 2020. Additionally, during the August 18-25 campaign period, Mars Wrigley saw the frequency of in-site searches of Yida and other brands increased significantly from the week prior, with sales increasing nearly 3x compared to last year.
The brands are eager to continue working with Dada to expand their reach in lower-tier cities while Dada benefits from the prestige and credibility of providing consumers with a more efficient way to purchase these sought-after brand names. Dada has continued to accelerate the expansion of second and third-tier markets, bringing the convenient one-hour home delivery service to more consumers. At the end of the second quarter of 2020, JDDJ’s business covered approximately 1,000 counties and cities nationwide, with more than 200 new locations added in the quarter. Additionally, through big data analysis, JDDJ has optimized product structure and innovated marketing activities based on the characteristics of urban consumption, achieving rapid development of the lower-tier markets. In the second quarter, the gross merchandise volume (GMV) of the platform in low-tier cities increased by more than 170% year-on-year.
“Dada has established itself as the premier partner for leading brands looking to grow their O2O and e-commerce capabilities,” said Philip Kuai, Founder, Chairman and CEO of Dada Group. “These are truly win-win partnerships – our brand partners provide us with a wider selection of leading products on our platform as well as the credibility and recognition linked to their brands, while Dada leverages its resources, know-how and cutting edge technology to establish and strengthen the brands’ online retail presence, increasing consumer awareness and customer retention. Our collaborations have proven successful to date, and we are continually seeking opportunities to take these brands to the next level. Importantly, these partnerships benefit consumers as well, as we are able to offer them the best selection of products and unmatched convenience of one-hour delivery.”
Dada’s partnerships have remained strong, weathering, or even thriving despite the unpredictable market conditions brought by the COVID-pandemic. Dada’s multi-faceted approach, including using its influence to launch original marketing events and discount days to promote sales, implementing technologies such as their Monica system, which allows them to track user behavior and create better-targeted advertising, and inventory and supply-chain optimization techniques enabled by their Haibo system, empowers brand partners, strongly positioning them to gain market share and increase brand awareness amid an uncertain economic environment.
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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