Apr 20, 2022|
China’s Commercial Kitchen Appliances Market Sees Boom: One-Stop Service Solution in High Demand
Vivian Yang
China’s market for commercial kitchen appliances is rapidly moving forward as the COVID-19 situation gradually normalizes in China, while the foodservice industry is projected at a more than 10% growth rate in the coming years, according to the latest white paper on China’s commercial kitchen appliances market released by JD.com and the market research firm iResearch on April 19th.
Based on an in-depth survey, the white paper showed that large-size commercial kitchen appliances used for food processing, display and storage are one-third of the cost of a new restaurant, and the overall expenses on kitchen appliances account for approximately 7 percent of a restaurant’s revenues, whereas more than half of the surveyed owners expressed to increase their procurement budget on relevant equipment in the near future.
JD’s sales data showed that in the first quarter of 2022, commercial display fridges, refrigerators, disinfection cabinets, water boilers and electric convention ovens were the top categories in demand and account for over 50% of sales of this segment, with each category making up 25.4, 11.6，8.2，5.1 and 4.6 percent of sales respectively.
Both high-tier (up by 105.6% YoY) and lower-tier (up by 132.3% YoY) markets achieved robust growth with the latter showing a stronger momentum. Compared with the full year 2021, consumption from lower-tier cities in Q1 was up by 5.1 percent, accounting for nearly 70 percent of the whole year expenditure on this segment.
The introduction of smart, environmentally-friendly and standardized products is boosting the market demand, as foodservice enterprises look to upgrade the functions, appearance and services of their kitchen equipment, noted the white paper.
“Service is what enterprise users value the most as they make procurement decisions,” noted Hui Liu, director of Consumption and Industry Development Research Institute of JD.com. “The capabilities to provide more efficient, convenient and flexible one-stop service that can help them with product introduction, trials, installation trainings, equipment maintenance and more services before, during and after sales will be much desired and a key to success in this market.”
As a response, JD Business, the enterprise service business unit of JD.com has joined hands with brand partners of commercial kitchen appliances such as Lenovo, MAXHUB, Lecon, DEMASHI and others, to launch a one-stop worry-free solution for foodservice enterprises, in which at one transparent product and service rate, clients will be provided customized services ranging from onsite survey, design, installation, provision of auxiliary materials and more to set up their kitchen space and management.
Moreover, by leveraging JD’s advantages in digital supply chain and technologies, foodservice enterprises can first utilize the site’s VR and 3D-powered experience space to build their kitchens virtually and get advice from professional designers with tailored need, measurements and more, then they may place orders online to be on track of the whole service process while enjoying better price, less time consumption and higher efficiency same as what JD is best known by Chinese consumers.
Dec 20, 2024|
Dada NOW Receives “Leading Restaurant Empowerment Platform” Award at the 10th China Catering Innovation Conference
On December 19, Dada NOW, China’s leading local on-demand delivery platform under Dada Group, was awarded the “Leading Restaurant Empowerment Platform” accolade at the 10th China Catering Innovation Conference in Shanghai. Celebrated for its innovative 4D Service Standards, Dada NOW delivers professional, flexible, intelligent, and customizable services to top food and beverage brands including CHAGEE, KFC, Luckin Coffee, McDonald’s, and Pizza Hut, garnering extensive acclaim within the catering industry.
4D Service Standards
The “Leading Restaurant Empowerment Platform” award honors platforms that provide comprehensive and professional services to restaurant businesses. Leveraging years of experience with leading restaurant brands, Dada NOW has crafted its 4D Service Standards to effectively address delivery challenges and enhance service quality. These standards include:
- Dedicated: Integrated solutions for warehousing, picking, and delivery.
- Dynamic: Tailored delivery solutions for diverse vendor scenarios, including store-stationed and crowdsourced rider options.
- Data-driven: Efficient data management systems utilizing AI technology for order dispatching, fulfillment timeliness, and quality inspection.
- Designable: Customized services for large supermarkets and restaurant merchants to bolster brand value.
Fast and Accurate Delivery
In the fast-paced food delivery sector, Dada NOW’s survey data indicates that 63% of brand merchants and consumers expect timely delivery, 21% prioritize location accuracy, and 9% value punctual pickup. Dada NOW completes delivery in as quickly as 9 minutes, with a 99.5% on-time completion rate and a 98% accuracy delivery rate. Real-time order matching is achieved in as fast as 0.3 seconds, ensuring fast and accurate service.
Unlike delivery providers that only focus on a single merchant type, Dada NOW provides both supermarket and restaurant deliveries. The differing peak times between these sectors allow for capacity complementation, enhancing efficiency and reducing costs. With a nationwide network of over a million riders and an industry-leading on-demand delivery model, Dada NOW has executed over 900 million route plans, swiftly allocating resources during peak periods such as lunch and dinner rushes, new product launches, and promotional events.
Customized Solutions for Merchants
To meet the strong customization needs of brand merchants, Dada NOW can offer bespoke services for each store, integrating its delivery capacity, products, and technological solutions. A notable example is the partnership with Sam’s Club, for which since 2017 Dada NOW has developed customized solutions in delivery capacity models, co-branded equipment, rider training, and system integration. This collaboration has achieved nearly 100% coverage of customized rider equipment such as helmets, uniform and delivery containers, and provides excellent customer service experiences. This highly effective collaboration demonstrates Dada NOW capabilities that are also transferrable to the restaurant sector.
Luckin Coffee, a long-standing partner of Dada NOW, exemplifies the high standards in the coffee and tea beverage sector, achieving a “30-minute delivery rate of 99.9%” to maintain peak freshness delivered to customers’ doorsteps. Dada NOW’s flexible rider network effectively manages peak demands and large order volumes during product launches and promotions through an intelligent order dispatching system, ensuring optimized delivery routes and careful handling to prevent issues like coffee spillage. Since 2023, this partnership has earned Dada Now several accolades from Luckin Coffee, including the “Best Strategic Cooperation Award” and “2023 Outstanding Delivery Partner,” with rider Tu Yanping being recognized as one of four “Annual Gold Riders” nationwide.
Dada Group operates two core businesses: JD NOW, formerly known as JDDJ, an instant retail platform, and Dada NOW, a local on-demand delivery service. Leveraging its extensive crowdsourced delivery network of millions of riders, Dada NOW provides a comprehensive service system open to merchants and individual senders across various industries and product categories. The company’s two platforms operate independently and collaboratively.
(vivian.yang@jd.com)
JD Logistics and Dada Boost Recruitment of Couriers in Shanghai
