On November 15th, Dada Group released its performance for the third quarter of 2023, with core indicators achieving steady growth. In the third quarter, the total revenue of Dada Group was 2.9 billion RMB, an increase of 20% compared to the same period last year. After adjustment, the net profit margin increased by 11 percentage points year-on-year, and the profitability was significantly optimized year-on-year.
The dual platforms under Dada Group maintain rapid development. According to the financial report, the revenue of Dada Express platform in the third quarter was 1.1 billion yuan, a year-on-year increase of 29%. While providing high-quality and reliable performance services for partners and consumers, Dada Express Active Knight saw a year-on-year growth of over 20% in the third quarter, providing flexible employment opportunities for more workers. The revenue of JD Home platform in the third quarter was 1.8 billion yuan, a year-on-year increase of 16%. In the 12 months ended September 30, 2023, the total transaction volume (GMV) of JD 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, further consolidating the platform ecosystem of common prosperity in multiple formats.
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
Further Deepen JD Collaboration to Build a Happy Three kilometer Ecology
In the third quarter, Dada Group further deepened its collaboration with JD Group, strengthened its capacity building in the real-time retail field, better met consumers' "fast, efficient" shopping needs, and helped partners achieve deterministic growth, creating long-term value for the industry.
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. Real time retail has become an important part of JD's efforts to create a fast, cost-effective consumer experience.
In the past November 11th of JD, real-time retail achieved strong growth with its differentiated competitive advantage of "full category hourly delivery". On November 11th, JD Hour achieved a 45% year-on-year increase in transaction volume. The "JD Sales Live" that has become popular in the industry can also reach hourly rates, upgrading the live shopping experience and further driving sales growth. During the promotion period, the transaction volume of JD Home to Home Live increased by more than 10 times compared to 618. Dada Express relies on faster and more intelligent diversified delivery services to ensure efficient performance of businesses 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.
Accelerate the digital upgrade of the retail industry, help merchants and brands grow together
Real time retail has been recognized as a common driving force for e-commerce and retail, as it links millions of offline physical enterprises and the real needs of online consumers. JD Home, relying on digital and local supply chain collaboration capabilities, has become a powerful engine for merchants and brands to achieve omnichannel growth while meeting consumers' real-time and convenience needs.
Further expanding leading advantages in the field of commercial supermarkets. Among the top 100 supermarkets released by the China Chain Store Association (CCFA), JD Home has cooperated with 93 of them. In the third quarter, JD Home provided consumers in over 2200 counties, districts, and cities across the country with a discount on basic shipping costs for orders exceeding 59 yuan. After the introduction of the "free shipping" initiative, the ordering frequency and retention rate of supermarket users have significantly improved. In addition, JD Home continues to expand cooperation with convenience store merchants, and the GMV from convenience stores increased by more than 8 times year-on-year in the third quarter. U0026nbsp;
Further breakthroughs have been made in the 3C digital field. JD Home has been eligible for Apple's new product launch for four consecutive years, and the iPhone 15 series has officially launched after sales. Sales in the first two hours have increased by 250% compared to the iPhone 14 series. In addition, Android brands such as Xiaomi, OPPO, and OnePlus also achieved rapid growth in the third quarter. In the computer digital category, by supporting new brands, normalizing weekend marketing, and exploring scenario based sales, GMV increased by 60% year-on-year in the third quarter. Brands such as Dell, Little Genius, and Jimi all achieved significant growth.
The household appliances and home furnishings category continues to grow rapidly. In the field of household appliances, JD Home has reached cooperation with major brands such as Hisense and Skyworth, providing differentiated products and integrated delivery and installation services to better meet consumers' diverse needs. In the third quarter, the GMV of household appliances increased by nearly 70% year-on-year, and the number of new household appliance stores reached 8000. The home furnishings category also achieved rapid growth, with GMV increasing nearly three times year-on-year in the third quarter. U0026nbsp;
Clothing and alcohol categories continue to grow strongly. In the third quarter, the GMV of clothing categories increased by more than five times year-on-year, and new stores of brands such as SKECH and Hot Wind were launched. Driven by the continuous improvement of core single product supply, liquor has made further breakthroughs, with a year-on-year increase of over twice in GMV of liquor in the third quarter.
Real time retail has entered a new stage of quality improvement and upgrading. Not only physical retailers, but also brand merchants are more actively embracing real time retail from an omnichannel perspective, reconfiguring resources. The industry has shifted from purely traffic driven to digital+supply chain collaborative driven, making the cost, efficiency, and experience of product circulation better.
In September, JD Home officially launched the "Double Billion Brand Plan" for brand merchants, announcing that it will help over 10 brands break through 1 billion in sales by 2024 and create a brand benchmark with sales exceeding 10 billion. The "brand circle of friends" continues to expand. Recently, we have reached cooperation with Baijiu brands such as Moutai and Yanghe, and achieved a breakthrough in the marketing of Baijiu categories on the instant retail platform; New cooperation has been established with leisure food brands such as Yanjin Puzi, as well as dairy brands such as Lechun and Jianai. In addition, we will deepen cooperation with brand merchants to promote real-time retail marketing across all regions, helping brands reach users through multiple channels both inside and outside the site. Starting from September, JD Home collaborated with brands such as Quaker, Aomiao, and Meijiajing to hold offline square dance competitions in multiple regions across the country, driving online sales growth through offline marketing. On the day of the final of the Shanghai competition, the sales of the naming brand Guige increased by 220% year-on-year.
Technology Empowerment, Omni Channel Growth, Hongtu+Comprehensive Opening of Haibo System
Relying on the ability building accumulated through years of deep cultivation in real-time retail and the integration of JD's digital products, Dada Group has formed a dual core digital system of Haibo+Hongtu, assisting retailers and brand merchants in digital upgrading and omnichannel operation.
Haibo System, as an omnichannel digital platform system, helps retailers effectively solve the pain points of omnichannel development and improve operational efficiency. As of the end of September, Haibo has covered nearly 12000 retail stores. In the third quarter, Haibo upgraded its visual inventory function to support more business scenarios and iterated algorithm logic, making inventory more convenient. After the pilot merchants upgraded this feature, the inventory abnormality rate caused by inventory checking decreased by 98.6%.
In September, JD Home released the first LBS grid operation tool in the real-time retail industry to help brands improve omnichannel operational efficiency - Hongtu. The Hongtu system uses B2C+O2O global data analysis to help brands explore grid opportunity points, achieve supply-demand matching, and achieve precise advertising. At present, Hongtu System has served 10 brands in categories such as fast moving consumer goods, 3C, medicine and health. After the pilot brand used the real-time retail grid marketing operation full link solution of Hongtu System, the click through conversion rate of advertisements increased by 12%, and the average cost of acquiring a single new customer decreased by 37%.
Faster and more intelligent diversified transportation capacity to meet the fulfillment needs of merchants in all formats
In the era of full category hourly delivery, instant delivery and fulfillment play a crucial role. Dada Express continues to provide affordable and high-quality real-time delivery fulfillment services to merchants and consumers through capacity upgrades and technological innovation, achieving a balance of cost, efficiency, and experience.
In the third quarter, the active Knights on the Dada Express platform increased by over 20% year-on-year, creating more flexible employment opportunities for the Knights group, improving their delivery experience, and bringing them a better life.
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. In the food category, Dada Express has recently established new partnerships with chain restaurants such as Yoshino and Tastin.
Thanks to a wider range of service options, the completion volume of small and medium-sized businesses and personal businesses increased by 40% year-on-year in the third quarter. The Dada Unmanned Delivery Open Platform has cumulatively delivered over 200000 supermarket orders, further consolidating its position as the largest supermarket unmanned delivery platform in China.
Leading the healthy development of the industry, continuously investing in creating social value
Dada Group actively promotes the development of the instant delivery industry. In August, Dada Group, as the only representative of the instant delivery industry, was selected as a typical case of efficient urban and rural distribution in China jointly released by the Ministry of Commerce, the Ministry of Public Security, the Ministry of Transport, the National Postal Administration, and others. In September, Dada Group was selected as the "National Key Contact Enterprise for Trade and Logistics" by the Ministry of Commerce for 2023, fully reflecting the recognition and recognition of Dada Group by multiple departments in promoting the development of the real-time industry.
Continuously investing and practicing social responsibility. In August, Dada Express launched a special flood disaster relief operation to assist in the resumption of work and production in severely affected areas such as Zhuozhou in Hebei and Fangshan in Beijing. At the same time, we will provide local riders with attendance subsidies, equipment upgrades, public welfare medicine boxes, and other care measures. In September, JD Home collaborated with brands such as Ferrero, Unilever, and Gao Jiesi to donate 100000 daily necessities packages, including hygiene supplies and food, to over 10000 teachers and students from 17 schools in Chengduo County, Yushu Autonomous Prefecture, Qinghai Province, to build a warm public welfare on the plateau at an altitude of 4500 meters.
The characteristics of real-time retail mode determine that only through co construction and sharing can we achieve win-win results. In the future, Dada Group will work with ecological partners such as retailers, brand merchants, and riders to interpret the digital transformation of physical retail through practical actions, seize the long-term opportunities of the industry, and jointly build a prosperous ecology that shares three kilometers of happiness.