Oct 12, 2021|

JD Rolls Out Shop Now, Moving From “Delivery in a Day” to “Delivery in an Hour”


by Mengyang He

On October 12, JD.com and Dada Group (Nasdaq: DADA) jointly launched “Shop Now,” a jointly built new business dedicated for JD’s on-demand consumer retail section, and it will more easily connect JD’s more than 530 million customers with products offering delivery within one hour.

Positioned in the core of JD’s omni-channel operation, Shop Now reiterates the company’s commitment to on-demand retail. “Shop Now integrates the omni-channel abilities and resources from JD Retail and JDDJ,” said Huijian He, Vice President of JD.com and Dada Group, Head of JD Omni-channel Home-Delivery Department. “The enhanced business will provide a comprehensive portfolio of one-hour, on-demand retail capabilities within JD’s ecosystem, bringing a faster, better and more economical shopping experience to both consumers and partners.” Products with the “Shop Now” icon on JD.com’s app will support one-hour delivery and even delivery within minutes, fulfilled by nearby physical stores with a radius of 3 kilometers.

Huijian He, Vice President of JD.com and Dada Group, Head of JD Omni-channel Home-Delivery Department

In addition to JD’s first party B2C business model as well as its open platform, Shop Now ushers in a brand-new service model in on-demand retail, which would consequently boost JD’s omni-channel growth. The launch of Shop Now signifies great progress for JD’s retail business and serves as a token of the full-fledged development of JD’s supply chain layout, which consists of three comprehensive supply chain models, namely the B2C central warehouse model, the origin warehouse model, and the on-demand retail model.

Given the increased purchasing power from China’s middle class and the push from the pandemic, on-demand retail is gaining popularity and growing at a fast pace in China. According to the National Bureau of Statistics of China, the market size of Chinese local retail O2O platforms in 2020 reached RMB 150 billion yuan, and it is expected to soar as much as six-fold, making up to 900 billion RMB in 2024. Additionally, the penetration rate of O2O local retail is also estimated to mount from 0.6% in 2019 to 5.8% in 2024.