-- Creating a New On-Demand Retail Model for Health Care Brands
Shanghai, China, October 26, 2020 — Dada Group (Dada Nexus, Nasdaq: DADA) ("Dada" or the “Company”), China's leading local on-demand retail and delivery platform, announced a strengthened strategic partnership with Kimberly-Clark China (“Kimberly-Clark”), a leading provider of health care and personal care products. Philip Kuai, Founder, Chairman and CEO of Dada Group and Haiying Zhang, Managing Director of Kimberly-Clark China, signed an agreement in Shanghai last Wednesday. As part of the signing ceremony, JDDJ, Dada’s local on-demand retail platform, presented Kimberly-Clark with an award for "Best Category Strategic Cooperation Brand."
The two companies initially established a partnership in 2018. Since that time, Dada has enhanced Kimberly-Clark’s marketing capabilities, and for two consecutive years, sales of Kotex and Huggies brands have ranked first on JDDJ in the categories of health care and baby products. During the first three quarters of 2020, Kimberly-Clark's sales on JDDJ greatly exceeded those during the same period a year ago, establishing JDDJ as Kimberly-Clark’s O2O platform with the highest sales ratio. In terms of marketing, JDDJ has created a number of initiatives including "Super Brand Day," "Super Fan Day," "CP Day," and "New Product Festival". Through these events and industry-leading technologies, JDDJ has helped Kimberly-Clark improve its marketing capabilities and category penetration rate in O2O channels.
Through this strengthened partnership, Dada Group and Kimberly-Clark will collaborate on user and online traffic operation, category management and supply chain capability improvement, and digital marketing innovation, to jointly promote the development of on-demand retail for health care products.
● Marketing: JDDJ will offer Kimberly-Clark marketing strategies to attract new users, retain current users, and create customized shopping guides to fit the needs of individual users. JDDJ will also create more customized marketing activities, strengthen its capacity in lower-tier cities and fully tap Kimberly-Clark sales potential. As the leading local on-demand retail platform in China, JDDJ has built a brand-marketing ecosystem based on O2O channels, which is driven by marketing, users, and sales volume.
● Data Analytics: JDDJ will provide Kimberly-Clark with the tools to conduct data analysis on its users and online traffic through the Monica system. Based on its underlying supply chain digital integration capabilities, the JDDJ platform can provide big data to support decision-making and omni-channel marketing management, making brand owners' marketing more accurate. This will help Kimberly-Clark explore new ways to reach users, increase its user base, and continuously improve is user stickiness and repurchase rate.
● Supply Chain: Leveraging the digital integration capabilities of the platform, JDDJ will help Kimberly-Clark fully realize offline to online consumption. From one-stop management of products on the shelves, to inventory and price control, JDDJ will improve the efficiency of its commodity and supply chain management systems.
"Kimberly-Clark is one of Dada Group’s closest partners and we are pleased to further strengthen our long-term cooperation,” said Mr. Kuai. “Looking ahead, we will continue to leverage our digital marketing, user operation, and supply chain capabilities to further accelerate Kimberly-Clark’s sales growth, while creating a new on-demand retail model for health care brands.”
"Expanding our O2O home-delivery business is one of Kimberly-Clark’s key priorities,” added Mr. Zhang. “Dada Group was our earliest core on-demand retail partner, and the Company’s support has been invaluable as we’ve expanded our marketing capabilities and grown our sales. This expanded partnership brings opportunities for new product development, marketing model innovation, and market resource input, which will help us build our market share and consumer penetration rate in the local on-demand retail market."
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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