- Apr 15, 2020
- Business Update
JD Provides One-Hour Delivery with Dada Group
by Rachel Liu
JD.com announced today that it will partner with Dada Group to provide JD’s customers with one-hour delivery service of daily necessities powered by Dada Now.
Through the latest cooperation with Dada Group (JD’s joint venture for local on-demand retail and delivery), JD customers can now directly buy over three million products from participating stores on JD.com and receive the products within an average time of one hour. Some products can even be delivered within 15 minutes.
To enable this, Dada Group will launch around 100,000 stores from JDDJ (JD Daojia, Dada’s local on-demand retail platform) on JD.com. A group comprised of nearly 100 chain supermarket and store brands, including Walmart, Yonghui Superstores, Better Life and BHG will be the first to join.
This cooperation is an expansion of JD’s Omnichannel Fulfillment supply chain innovation program. Launched in 2019, the program integrates multiple types of offline channels, including supermarkets, convenience stores and brands’ offline stores, enabling them to deliver orders that originate from JD directly. This improves the efficiency of the supply chain and shortens delivery time to an average of two hours.
For the stores and retailers that work with JDDJ, launching on JD.com provides them with a new channel for sales and attracting new customers, which can improve the stores’ sales performance and turnover rate. For customers, they now have the chance to enjoy even faster delivery service when shopping on JD; for JD, the JDDJ stores have brought many products from offline stores online, which significantly enhances JD’s product layout and can provide customers with more choices.
JD’s Omnichannel Fulfillment program has attracted many leading brand partners since launching, including Coca-Cola, Nongfu Spring, P&G, C’est bon, Budweiser, and others, covering offline stores in 242 cities across China. During the fourth quarter of 2019, some brands have seen their orders increase 300% y-o-y after joining the program. The program first covered heavy and bulky products, such as rice, flour, beer, due to storage and shipping challenges. Now, it has been expanded to include medicine sold by JD. Currently, there are around 13,000 offline drug stores in 157 cities across China, which are connected with this program, enabling Chinese consumers to get their medicine delivered within 30 minutes at the fastest.
In the future, the Omnichannel Fulfillment program will be expanded to categories including electronics, fashion, auto products and books.