On November 15th, local real-time retail and distribution platform Dada Group (Nasdaq: DADA) released its performance for the third quarter of 2023. In the third quarter, Dada Group achieved a total revenue of 2.9 billion yuan, an increase of 20% compared to the same period last year. After adjustment, its net profit margin increased by 11 percentage points year-on-year, and its profitability was optimized compared to the same period last year.
From a business platform perspective, the dual platforms under Dada Group have maintained rapid development. According to the financial report, the revenue of Dada Kuaishou platform in the third quarter was 1.1 billion yuan, a year-on-year increase of 29%, and Dada Kuaishou Active Knight increased by over 20% in the third quarter. The business of chain merchants continues to maintain rapid growth, and in the third quarter, the revenue of chain merchants increased by 25% year-on-year. Among them, the revenue from beverage categories continues to maintain rapid growth at a high double-digit rate. The completion volume of small and medium-sized businesses and personal businesses increased by 40% year-on-year in the third quarter. The Da Da unmanned delivery open platform has cumulatively delivered over 200000 supermarket orders.
It is worth mentioning that as a representative of JD's real-time retail business, multiple data growth rates on the JD Home platform are also impressive.
The financial report shows that in the third quarter, it achieved a revenue of 1.8 billion yuan, a year-on-year increase of 16%. As of September 30, 2023, the total transaction volume (GMV) of the JD Home to Home platform was 73.1 billion yuan, a year-on-year increase of 24%. While stimulating consumer vitality in all categories, supply continued to expand. As of the end of September, JD has over 400000 door-to-door business stores.
I am glad to have achieved stable growth again this quarter and significantly improved profitability year-on-year, "said He Huijian, President of Dada Group, In the process of moving towards instant access to countless good things, we have achieved high-quality growth while also creating considerable social value. In the future, we will work together with JD Group to continuously empower retailers, brands, and riders with high efficiency based on our digital capabilities, and improve the shopping experience of consumers
In the third quarter, Dada Group further deepened its collaboration with JD Group and took frequent actions in capacity building in the real-time retail field. In October, JD's real-time retail happiness three kilometer model was released to the public, and a "five-year action plan" was proposed to assist physical entities, stabilize employment, and promote consumption: to help over 2 million local small and medium-sized physical stores achieve digital transformation and upgrading; Providing over 10 million flexible employment positions to society; Collaborate with ecological partners to drive trillion yuan of consumption and assist in improving and expanding consumption.
In fact, the field of real-time retail has broad prospects and has become a common driving force for major e-commerce and retail platforms, as well as online and offline platforms. On October 18th, the "2023 Real Time Retail Development Trends White Paper" released by China International E-commerce Center and others stated that the real time retail industry will enter a new stage of quality improvement and upgrading in 2023, laying a potential space for the future large-scale market of real time retail. It is expected that by 2030, the size of the real-time retail market will increase to 3.6 trillion yuan, equivalent to 6% of the total retail sales of consumer goods in the same period.
In September of this year, the "Real time Retail Industry Development Report (2023)" released by the International Trade and Economic Cooperation Research Institute of the Ministry of Commerce also showed that in recent years, real-time retail has maintained an average annual growth rate of over 50%, and the market size reached 504.286 billion yuan in 2022. It is expected that the size of the real-time retail market will reach three times that of 2022 by 2025.
It is worth mentioning that during the recent promotion period of the 11th National Congress of E-commerce, real-time retail stations also gained momentum, with a significant increase in full category orders from multiple platforms.
On November 14th, Meituan Flash Shopping released its November 11th closing report, which showed that on November 11th, the number of participating products increased by 123% compared to last year. Real time retail showed a prosperity in all categories, including clothing, food, housing, transportation, entertainment, and other fields. Sales reached a historic high, especially in the five core categories of digital home appliances, beauty and personal care, pet food, department store clothing, and mother and baby toys. Among them, the sales of outdoor shoes and clothing increased by 1742% year on year, the sales of electric hotpot increased by 436%, Baijiu increased by 255%, pet care increased by 106%, the sales of skiing related goods increased by 281%, electronic education increased by 547%, game equipment increased by 834%, computer machines increased by 367%, and playing instruments increased by 159%.
In terms of JD Home, the orders promoted by the Double Eleven have also achieved strong growth. On November 11th, JD Hour achieved a 45% year-on-year increase in transaction volume. The "JD Sales Live Broadcast" can also reach hourly rates, upgrading the live shopping experience while further driving sales growth. During the promotion period, the transaction volume of JD Home Live increased by more than 10 times compared to 618. Dada Express relies on diversified delivery services to ensure the efficient performance of merchants throughout the industry during the promotion period. During the period of November 11th on JD.com, the total order volume of Dada Express delivery reached 200 million, reaching a new high. JD.com's real-time retail service only took 9 minutes to deliver the fastest order in the country.
With the increasingly fierce competition in the traditional e-commerce market, e-commerce platforms need to find new growth points, and real-time retail is such a market with great potential. "Jiang Han, a senior researcher at Pangu Think Tank, told Securities Times · e Company reporters that the future market prospects of real-time retail are very broad. With the increasing demands of consumers for shopping experience and efficiency, as well as the increasing investment of e-commerce platforms in the real-time retail market, the real-time retail market will continue to develop rapidly. In the future, the real-time retail market will continue to expand, competition will become more intense, and it will also drive the transformation of the entire retail industry.