BUSINESS New data highlights rising consumer demand following COVID-19 outbreak

BUSINESS

New data highlights rising consumer demand following COVID-19 outbreak

People's Daily app

23:24, April 18, 2020

Dada Group, China's leading on-demand delivery and retail company, announced on Friday that JDDJ, its online retail platform, has closed its 5th Anniversary Shopping Festival with record sales. Overall peak-day sales rose 1.1 times over 2019 and sales in third and fourth-tier cities increased by 4.8 times compared with last year. 

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(File photo)

During the promotional period between April 5 to April 16, JDDJ partnered with leading retailers and brands, including Walmart, Yonghui, CR Vanguard, Unilever, Pepsi Food, to offer coupons with a total value of more than 250 million yuan ($35.2 million) to consumers. In addition to providing coupons, JDDJ also ran other interactive promotions, including three live-streaming events with over 700,000 viewers, where participants received products, exclusive vouchers and other discounts on snacks and drinks, and dairy and personal care products. 

According to JDDJ's sales data from the festival, the demand for daily necessities, such as fresh fruits, vegetables, meat and poultry, continued to grow at a high rate. Additionally, the sales of snacks, imported commodities and dairy products increased significantly year-over-year across the platform, and the sales of mobile phones grew by five times compared with figures from January 2020. The most popular types of products sold during the live-streaming events were snacks and dairy products, including milk, ice cream and potato chips. 

With nearly 100,000 chain stores and millions of products in various categories integrated into JDDJ's platform, JDDJ is able to provide consumers in more than 700 counties and cities across the country with "one-stop shopping, one-hour delivery" service. In 2020, JDDJ expanded its services to nearly 20 lower-tier cities, including Shaoxing in Zhejiang Province, Luoyang in Henan Province, Lijiang in Yunnan Province, Xianyang in Xiaxi Province and Beihai in Guangxi Province. JDDJ utilizes its intelligent logistics system and big data to fill orders efficiently and provide a seamless customer experience. During the festival, the average delivery time of JDDJ orders completed by Dada Now riders on peak-day was 23 percent less than last year. 

"We are pleased to have successfully completed JDDJ's Fifth Anniversary Shopping Festival," said Philip Kuai, founder and chief executive Officer of Dada Group. "The delivery and e-commerce sectors have been tested in new ways following the COVID-19 outbreak, and we are incredibly proud of the work we've done to continue providing our customers with vital supplies and innovative and convenient shopping solutions," he added

During the outbreak in China, Dada played a critical role in providing essential products such as medical supplies and fresh produce to customers as they increasingly opted for delivery services. The number of orders on Dada's platform increased fourfold and the company matched this unprecedented demand while creating over 35,000 new jobs in partnership with JD.com. During this time, the Company also set up a health and safety task force, implemented emergency procedures, stabilized prices, guaranteed deliveries, launched "Contactless Delivery Services", and provided extra insurance, health services and protection for riders as they distributed vital resources to people across the country. Dada has emerged from this period of uncertainty stronger and as the spread of COVID-19 stabilizes in China, the populace is eager to consume at a higher rate. In Wuhan, online sales on peak-day increased 1.2 times compared with last year. 

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