Dada Group (“Dada” or the “Company”), China’s leading local on-demand delivery and retail platform, is offering one-hour delivery to customers across China. Since the onset of COVID-19, the e-commerce industry in China has grown significantly and an increasing number of consumers prefer to have goods delivered directly to their home. Today, as COVID-19 restrictions are eased and consumers begin to return to normal shopping habits, this preference for on-demand consumption remains unchanged.
Dada Group developed its on-demand retail services over the past 6 years, empowering and creating value for its partners. Dada Group’s 2020 third quarter financial report shows its geographical and category expansion, as well as the Company’s growing number of partnerships. Philip Kuai, Dada Group’s Founder, Chairman and CEO, noted in an interview with Bloomberg TV in October last year that the home delivery services provided by Dada Group have been expanding in recent years, with COVID-19 as a catalyst.
Dada Group has a presence in first through fourth-tier cities and consumption patterns in lower-tier cities are different from those in first-tier cities. Consumers in lower-tier cities tend to have lower incomes, but face minimal pressures from housing loans and living expenses. Price-sensitive consumers also seek quality products and young people in lower-tier cities have spending power like those in first and second-tier cities.
JDDJ, Dada’s on-demand retail platform, partners with more than 100,000 merchants nationwide to provide high-quality products, ensuring consumer demand across a variety of categories. Dada Now, Dada’s local on-demand delivery platform, offers one-hour delivery services for high-quality goods to consumers in lower-tier cities.
According to Bain & Company and Tencent Smart Retail’s report “Turning COVID-19 into Opportunity and Acquiring Customers: Construction of Self-Controlled Traffic Platform of Brands,” consumer behavior in the wake of COVID-19 shows a trend toward “going online.” China Securities pointed out in its research report that as the on-demand delivery industry grows, we usher in an era of everything being delivered to the home. Consumers have developed a habit of shopping online, and many consumers choose “home delivery business” for fresh food and daily necessities, helping retailers and brand owners attract customers and ensure repeated orders.