Apr 14, 2021|
Dada Group Brings Supermarkets New Growth by Focusing on Consumers’ Need: A Case Study of CR Vanguard
SHANGHAI, China, April 13, 2021 – Dada Group (Nasdaq: DADA) (“Dada”), China’s leading local on-demand delivery and retail platform, and China Resources Vanguard (“CR Vanguard”), China’s largest supermarket chain enterprise group, announced that they have expanded their partnership with a focus on digitalization and user operation. Over 1,800 CR Vanguard stores including hypermarkets, supermarkets, convenience stores and boutique supermarkets, have been integrated into JDDJ, the on-demand retail platform of Dada. Besides the orders from JDDJ, Dada Now, the on-demand delivery platform of Dada, also offers Dedicated Delivery service and fulfills omni-channel orders of more than 1300 CR Vanguard stores, including those from CR Vanguard’s Application and Mini Program.
Ranking first on the list of the “Top 100 Chinese Supermarket Chains in 2019” by China Chain Store & Franchise Association (CCFA), CR Vanguard has the largest number of supermarket stores and its strategy adjustment always attracts much attentions. Hui Xu, General Manager of CR Vanguard, proposed the concept of becoming a “consumers’ favorite omni-channel retailer”, which means transformation from studying products to studying consumers, from stores to omni-channels, and adapts to the changes in online shopping experience. Therefore, while operating its own online platforms, CR Vanguard has built strategic partnership with third-party platforms such as JDDJ. It leverages JDDJ’s platform and technical capabilities to improve its all-round digitalization, in order to tap new opportunities and growth engines.
Dada and CR Vanguard initially established a comprehensive partnership in April 2018. The two companies expanded their strategic partnership in July 2020, with a focus on omni-channel fulfillment, product management, user operation and marketing. Over the past 3 years, CR Vanguard’s sales have grown rapidly on JDDJ’s platform, with a 2.2 times increase in 2020 compared to 2019 and 5 times increase in boutique supermarkets. In CR Vanguard’s omni-channel layout, JDDJ has become a key strategic partner.
Meanwhile, CR Vanguard launched its online membership program on JDDJ in April 2020, which was the first time that CR Vanguard operated membership services on a third-party platform. As of December 2020, the membership increased by 4 times compared to six months ago. The frequency of orders placed by its members were more than 50% higher than those of ordinary users.
According to Jun Jiang, General Manager of Business Growth Department at JDDJ, the platform and CR Vanguard currently formulate detailed operation strategies for its hypermarkets and boutique supermarkets to attract differentiated consumers rapidly. In terms of hypermarkets that have a huge offline membership of more than 50 million consumers, the collaboration focuses on increasing the scale of online membership and improving consumer stickiness.
“CR Vanguard is speeding up its digital transformation, developing online channels business and online and offline integration. We saw burgeoning online business in 2020,” said Mr. Xu. “The strategic cooperation with JDDJ is an important step for CR Vanguard to develop its online business. I believe that our complementary advantages and coordination with JDDJ will bring more new growth engines.”
“In the context of customer segmentation, multi-business type retailers represented by CR Vanguard aim to adopt differentiated operations for different business types on the basis of the needs of consumers to raise brand competitiveness,” said Jianzhen Peng, Secretary General of CCFA. “The partnership with JDDJ provides a powerful support for CR Vanguard’s digital strategy. The two companies capitalize on complementary capabilities to create new growth opportunities.”
This year’s JDDJ 415 Anniversary Shopping Festival is launched from April 8 to 18. During the period, JDDJ partners with leading supermarket chains in China, including Walmart, Yonghui Supermarket, CR Vanguard, BBG Supermarket, Aeon, Jiajiayue, Lotus and famous brands, such as Yili, Mengniu, P&G, Unilever, Yihai Kerry, Mars Wrigley, PepsiCo, Nestle, as well as over 100,000 merchant stores on the platform to create a “One-hour Shopping Carnival”. This provides consumers in nearly 1,400 counties and cities in China with “one-hour delivery” services for all categories of products, such as supermarket groceries, fresh meat and eggs, daily necessities, mobile phones and electronics, beauty and clothing.
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.”
About CR Vanguard
CR Vanguard is an excellent retail chain enterprise group that is part of CR Group, a Fortune Global 500 enterprise. It owns several famous brands, such as CR Vanguard, Suguo, Ole’, blt, V+, Tesco express, and V>nGO, among others.