International Demand

How Business Thrives in On-Demand Retail

At the summit, Dada Group released the “White paper on the open on-demand retail platform model” in collaboration with Chain of stores in China & Franchise Association (CCFA) and JD.com’s Institute for Consumer Research and Industry Development. White Paper Provides Industry-First Overview of On-Demand Retail Open Platform Model.

Seize the digital opportunity

Industry decision makers, digital business leaders and technology providers joined the leadership teams of Dada Group and JD.com to deliver keynote speeches at the summit to elaborate on their insights and forecasts on the on-demand retail.

Dr PEI Liang, President of Chain of stores in China & Franchise Associationdemonstrated: “On-demand retail is an important part of omnichannel retail. Not only does it leverage online traffic, but also, through the integration of existing offline resources, it enables cooperation between platforms and offline retailers to achieve a 1+1>2 effect. Offline stores serve as a terminal for fulfilling orders and as a terminal for storing products, and when enhanced by the on-demand retail model, their value can be maximized. »

Philip Jiaqi KUAI, Founder, Chairman of the Board and Managing Director of Dada Group said that from long-distance and short-distance to macro-distance, China’s e-commerce has surged forward to take one new step after another. For offline stores, on-demand retail has significantly expanded the scope of their activities; for brand owners, on-demand retail has builds a digital marketing and operations ecosystem that connects online and offline channels; for consumers, on-demand retail services represent significant improvements in terms of time, efficiency and shopping experience.

SE Huijian, Vice President of JD.com and Dada Group; Responsible for the intra-urban activity of JD.com believes that efficiency and experience are at the heart of retail. Emerged from both the supply side and the demand side, On-demand retail is expected to become a $1 trillion market in 3-5 years. JDDJ and Shop Now will continue to open our capabilities to the industry to extend the model to various types of offline retailers and brands through digital upgrades, operational optimization and efficiency improvements, in order to to provide consumers and partners with a faster, better and more economical shopping experience.

Development journey and success stories

It emerged from the discussions that retailers and brand owners have similarities in terms of requirements and challenges when adopting on-demand retail, which can be categorized into two models: stand-alone platform and open platform.

The White Paper reveals that gamers under the open platform model, are stronger in terms of the range of product categories offered, as well as technologies deployed to empower offline retail partners and drive the digital transformation of the real economy.

The report also discussed the development path under the open platform model and some successful cases. It was an invaluable guide for traders striving to seize new growth opportunities in the Chinese market. For retailers, what matters to them is omnichannel connection and fulfillment; for brands, the focus is on user interaction and marketing.

Based on the number and growth rate of participating stores, the white paper took supermarkets, fashion styles, and home appliances and consumer electronics as three major examples for analyze their development trajectories to strive to thrive.

  • Focuses for Supermarket are traffic, delivery capabilities and integration of data from multiple channels. Traffic largely determines potential business size, delivery capabilities are correlated to order fulfillment, and data integration and adoption of automated management are key to improving efficiency. .
  • Regarding fashion style and home applianceBesides traffic, the level of digitization greatly determines how retailers and brands manage their stores and inventory.
  • Turn to consumer electronics, the products have a high price, long life cycle and low level of transparency, so that consumers are more dependent on the shopping guide and after-sales service. The integration of online and offline marketing approaches and services will better meet customer expectations and become key brand differentiators in the industry.

As pioneers and leaders in on-demand retail, JD.com and JDDJ have cooperated with various well-known partners such as Walmart, vivio and Unilever, and the accumulated experiences and insights from the practices of the last 8 years. As a key driver of omnichannel growth for offline retailers and brands, the cooperation with JD.com and JDDJ in on-demand retailing has been recognized by the partners.

Xiaojing Christina ZHU, President and CEO of Walmart China, says“China is one of the largest, fastest growing and most competitive consumer markets in the world. We anticipate that on-demand retail will remain extremely popular here for the foreseeable future as it enhances the shopping experience for customers and accommodates modern lifestyles. As a leading omnichannel retailer with a “Customer First” mindset, Walmart China continues to innovate with its partners around end-to-end digitalization and efficiency. We look forward to delivering more value and a seamless shopping experience so our customers can save money and live better.”

“Thanks to on-demand commerce, the penetration rate and share of sales in categories such as health, mother and child, continue to grow”, weighs Katy CHEN, Managing Director of Kimberly-Clark China, “On-demand sales has become a channel that Kimberly-Clark attaches great importance to, we hope to further optimize and improve our performance through cooperation and innovation, promote and lead the development of personal care products and hygiene in the sale on demand market.”

Based on successful cases, the White Paper offers a methodological summary called “On-demand ACE”, suggesting a path to success in on-demand retail. ACE represents the capability, creativity and experiences required for the development of a trader in the initial, evolutionary and breakthrough phases.

About the Dada Group

Dada Group is a leading on-demand local delivery and retail platform 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 shippers in various sectors and product categories. The company’s two platforms are interconnected and mutually beneficial. The Dada Now platform enables a better delivery experience for participants on the JDDJ platform through its easily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders for the JDDJ platform is increasing the order volume and density for the Dada Now platform. In June 2020Dada Group began trading on the global Nasdaq market, under the symbol “DADA”.

About Chain of stores in China & Franchise Association

Chain of stores in China & Franchise Association (CCFA) is the official representative of the retail and franchise industry in China. Currently, there are over 1,200 member companies with over 460,000 outlets, including domestic and overseas retailers, franchisors, suppliers and related organizations. The total sale of CCFA retail members (franchise and catering not included) was 4.5 trillion yuan in 2020, representing 11.6% of all social consumables retail sales. The functions of the CCFA include: participating in policy development and coordination, safeguarding the interests of industry and members, providing a range of professional training and information and data on the industry for members, and the establishment of exchange and cooperation platforms.

SOURCE DADA GROUP