During the omni-channel “8.8 Shopping Festival”, held from July 18th to August 14th, Walmart China set a new sales record on the leading O2O e-commerce platform Dada-JD Daojia. Sales were up 120% over the same period in 2018.
The 8.8 Omni-channel Shopping Festival, which was created in partnership by Walmart China and JD.com online and offline in 2017, aims to provide a better shopping experience for the Chinese customers across all sales channels. Unlike conventional e-commerce shopping festivals, the 8.8 shopping festival seamlessly integrates online and offline retailing between shoppers and products, representing the trend of China’s future retail model.
High-speed sales growth in O2O channel
In recent years, Walmart China has evolved to an omni-channel retail strategy to satisfy the diverse needs of its customers shopping both online and offline, through services like O2O ordering on mobile devices, in-store pickup and one-hour home delivery. In 2016, Walmart announced its strategic alliance with JD.com as an important step in advancing its omni-channel retail capabilities in China, while Dada-JD Daojia played a critical role in empowering last-mile service solutions.
Dada-JD Daojia was created in 2016 through merging O2O e-commerce platform, JD Daojia, and China’s largest crowdsourced logistics platform, Dada. It received $320 million in added investment from Walmart in 2018. Currently, JD Daojia has more than 100,000 offline retail stores, providing Chinese consumers with one-hour delivery services for fresh, groceries, flowers, medicine, beauty, household and other products in more than 100 cities.
More than 400 Walmart stores participated in the 8.8 shopping festival. More than 290 of these stores have launched on the JD Daojia platform, doubling the number of Walmart stores on the platform in 2017. In July 2019, Walmart’s sales on the JD Daojia platform had increased by more than 13 times compared to the sales at its launch in October 2016.
Consumers can order via JD Daojia App or mini program, and products are delivered from the nearest Walmart store within one hour through the Dada instant logistics network. This online ordering and one-hour delivery service is becoming more and more popular among the Chinese customers, proved by the consistent growth of O2O sales.
The Innovation of Store Depot
Walmart, a leading global retailer in 27 countries, and Dada-JD Daojia, China’s leading O2O e-commerce platform, partner in new retail innovation including the store depot and an in-store, full-assortment picking area. The store depots are located in high-demand areas, providing one-hour delivery service for nearby residents within 3-5 kilometers instead of stores. This integrated store depot helps Walmart easily expand its coverage and serve more consumers.
The full-assortment picking area allows the store to function as a warehouse, while also serving as an in-store display of O2O goods. An associate receives orders and dispatches Dada deliverymen to the picking areas in store, which greatly shortens the order processing time and better serves the customer.
As a data-driven O2O e-commerce company, Dada-JD Daojia has served more than 100,000 stores in over 100 cities and accumulated a large amount of O2O products big data, which is of great value to Walmart. Dada-JD Daojia provides Walmart with its regionally-based, targeted product selection, enabling Walmart to maintain weekly products extension and replacement, and optimize sales in the O2O channel.
“With physical and digital infrastructure in place, Walmart is now focused on growing omni-channel customers in China. Through a partnership with Dada-JD Daojia, we’re more competitive in O2O arena. Walmart China’s ecommerce business had three-digit growth over the last three years. And last-mile delivery service is a great engine to drive our growth of O2O business and satisfy our customers’ instant demand.” Said by Zhiyu Chen, SVP of Ecommerce and Marketing, Walmart China.
Philip Kuai, founder & CEO of Dada-JD Daojia, said: “The fulfillment of delivery, trading platform and technology enablement are the three core capabilities we offer to our retail partners. Through complementary and win-win cooperation with Walmart, consumers can enjoy a more convenient and upgraded shopping experience, and the speedy home delivery service are now popularized in more families. This O2O consumption model is and also going to be more deeply rooted in consumers’ daily life. In the future, our cooperation with Walmart will be more efficient and in-depth, collaborating with more innovative practices, and promoting the one-hour delivery service to more small and medium cities in China with our joint efforts.” (Source: finance.yahoo.com)