On September 24th, Dada Group (Dada Nexus, NASDAQ: DADA), China’s leading local on-demand delivery and retail platform, and Yili Group (“Yili”), the largest and most comprehensive dairy products company in Asia announced newer, improved, and more integrated terms of their strategic business partnership. Philip Kuai, Founder, Chairman and CEO of Dada Group, and Yunlong Guo, Vice President of Yili Group, signed the amended cooperation agreement at Yili’s headquarters in Hohhot. The leadership of Yili’s liquid milk, powdered milk, cold drinks, yogurt, health drinks and cheese divisions also participated in the signing.
Dada and Yili have a history of close cooperation starting from 2017. Since then, Dada’s local on-demand retail platform, JDDJ, has pioneered the revolutionary model of “one-hour live shopping,” which combines “live shopping” and “one-hour delivery” and has become one of the fastest-growing mediums for Yili’s sales.
During their partnership, Yili has fully participated in many of JDDJ’s events, breaking record sales several times. Through targeted marketing, Dada helped Yili to improve user experience, cultivate brand loyalty and expand its returning customer base. This partnership was especially crucial for Yili in January to August 2020 as offline retailers grappled with the impact of COVID-19. JDDJ assisted Yili in bringing offline sales online and reducing the impact of the pandemic on its business. Yili’s liquid milk, yogurt, cold drinks, milk powder, health drinks and cheese categories all achieved three times the sales of the same time period last year.
According to the strategic agreement, the two companies will focus on digital marketing innovation, user operation, category management and supply chain capacity building, pioneering the development of China’s online dairy and food industry. JDDJ will use its advanced data analysis tools (e.g. Monica and Haibo systems), infrastructure, and technology to access user behavior data, helping Yili create more customized marketing approaches and fully reach its sales potential as consumer demand in China rises alongside income and standards of living. Together with JDDJ, Yili can explore community-based, regional customization of products and create an efficient supply chain system. Through this partnership, Dada further establishes itself as the premier O2O on-demand retailer in China with over 40 million active users.
At the signing ceremony, Yunlong Guo, Vice President of Yili Group, said, “Yili Group and Dada Group have always maintained a close and mutually beneficial relationship, and in the field of on-demand retail, we build off each other’s strengths to create many evolutionary and innovative sales and marketing strategies. Together, we are bringing a more convenient purchasing experience for Chinese consumers. With the vision of becoming the world’s most trusted provider of healthy food, Yili has always been committed to working with Dada Group to increase investment in research and resources in the field of on-demand retail, leading a new era in China’s food industry.”
Philip Kuai, Founder, Chairman and CEO of Dada Group, said, “Yili Group is one of the earliest brand owners to partner with us and we deeply value our relationship. It has been a pleasure to work with them over the years to move toward the digitization of China’s dairy industry, with innovation always at the forefront of our strategy. JDDJ will play a key role as Yili looks to expand its marketing capabilities, improve its supply chain and achieve faster sales growth.”
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(Syndicated press content)