Dada Group, China’s local on-demand delivery and retail platform, and JD.com today announced that they jointly launched “Shop Now”, the JD Xiaoshigou, a jointly built new business dedicated to JD’s on-demand consumer retail section.
Shop Now is based on the idea of “order online, deliver from store, within one hour” and will accelerate Dada Group’s and JD’s omni-channel operation in the on-demand retail space.
Through cooperation in consumer experience optimization, Shop Now has been growing rapidly in the testing phase, seeing a 150% increase in sales in September compared to January, and attracting an increasing number of JD’s 530 million active consumers. In the long term, the penetration of on-demand retail into JD’s consumer space is expected to reach 50%.
“Shop Now combines the retail capabilities and resources of JD Retail and JDDJ. The enhanced business will provide a comprehensive portfolio of one-hour, on-demand retail capabilities within JD’s ecosystem.” said Huijian He, Vice President of JD.com and Dada Group, Head of the JD Omni-channel Home-Delivery Department.
Shop Now has delivered enhanced experiences for consumers in verticals including supermarket chains, convenience stores, fresh flowers and pharmacies, and will enable JD and Dada Group to move into additional markets.
In a typical scenario, after placing a Shop Now order on the JD App, consumers will receive their products from a JDDJ’s partnering store within 3-5 kilometers radius and then delivered by Dada Now within one hour.
Jun Yang, Director and Chief Technology Officer of Dada Group commented on the new joint venture: “Dada Now is also providing integrated on-demand fulfillment solutions to address the hundreds of thousands of active riders fulfilling orders. Additionally, the platform can identify issues with warehouse, pickup and package handovers, and allows supermarkets with tens of thousands of online products to efficiently achieve one-hour delivery, and possibly even within minutes’.”
Shop Now will also play an important role in JD’s internal and external supply chain integration, enabling it to fulfill the diversified needs of producers, merchants and consumers.
Daniel Tan, Vice President of JD.com and President of Communication Department of JD.com said: “Today there are more than 8,000 mobile phone stores online with JD.com and with this enhanced retail platform, consumers can place an order on JD.com from the comfort of their home and receive their new phones within one-hour, greatly improving user experiences. In addition, Shop Now has driven an increase in sales of Apple’s authorized stores on JD.com by an average of 25%.”
According to an iResearch Report, GMV of local on-demand retail in the China supermarket segment is expected to grow significantly, with an anticipated CAGR of 62% between 2020 and 2024.