New Data Highlights Rising Consumer Demand Following COVID-19 Outbreak

Dada Now Helps JDDJ Provide “One-Stop Shopping, One-Hour Delivery” Service to Consumers across More Than 700 Chinese Counties and Cities

Sales in Third and Fourth-Tier Cities Increased by 4.8X Year-over-Year

JDDJ Celebrates Key Retail Partners That Contributed to Its Successful Expansion over the Last Five Years with Achievement Awards

Dada Group (“Dada” or the “Company”), China’s leading on-demand delivery and retail company, announced that JDDJ, its online retail platform, has closed its 5^th Anniversary Shopping Festival (the “Festival”) with record sales. Overall Peak-day sales rose 1.1 times over 2019 and sales in third and fourth-tier cities increased by 4.8 times compared with last year.

During the promotional period between April 5^th to April 16^th, JDDJ partnered with leading retailers and brands, including Walmart, Yonghui, CR Vanguard, Unilever, Pepsi Food, to offer coupons with a total value of more than 250 million yuan ($35.2 million) to consumers. In addition to providing coupons, JDDJ also ran other interactive promotions, including three livestreaming events with over 700,000 viewers, where participants received products, exclusive vouchers and other discounts on snacks and drinks, and dairy and personal care products.

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According to JDDJ’s sales data from the Festival, the demand for daily necessities, such as fresh fruits, vegetables, meat and poultry, continued to grow at a high rate. Additionally, the sales of snacks, imported commodities and dairy products increased significantly year-over-year across the platform, and the sales of mobile phones grew by 5 times compared with figures from January 2020. The most popular types of products sold during the live streaming events were snacks and dairy products, including milk, ice cream and potato chips.

As part of the Festival, on April 10^th JDDJ recognized 40 leading brands and retailers for the tremendous contributions the partnerships have had in building the e-commerce platform, improving store service and winning the recognition of customers. The Company named Walmart, Sam’s Club, Yonghui, CR Vanguard, BBK, AEON, Lotus and Dashenlin as “Trustworthy Merchants” recognized for their long-term collaborative partnerships and achievements in driving operational improvements in both the to-store business and to-home businesses; P&G, Unilever, PepsiCo Food, Nestlé, Mars Wrigley, Yili, Mengniu, Yihai Kerry and Master Kong as “Trustworthy Brands” recognized for providing consumers with high-quality convenient products through JDDJ’s platform; and Huaguan and 7FRESH as “Innovative Merchants” recognized as leaders in digital transformation and business innovation in the industry.

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By prioritizing strategic partnerships, JDDJ has become one of the leading e-commerce platforms in China. With nearly 100,000 chain stores and millions of products in various categories integrated into JDDJ’s platform, JDDJ is able to provide consumers in more than 700 counties and cities across the country with “one-stop shopping, one-hour delivery” service. In 2020, JDDJ expanded its services to nearly 20 lower-tier cities, including Shaoxing in Zhejiang Province, Luoyang in Henan Province, Lijiang in Yunnan Province, Xianyang in Xiaxi Province and Beihai in Guangxi Province. JDDJ utilizes its intelligent logistics system and big data to fill orders efficiently and provide a seamless customer experience. Almost all JDDJ orders are delivered by Dada Now, Dada Group’s complementary local on-demand crowdsourcing delivery platform. During the Festival, the average delivery time of JDDJ orders completed by Dada Now riders on Peak-day was 23% less than last year.

“We are pleased to have successfully completed JDDJ’s Fifth Anniversary Shopping Festival,” said Philip Kuai, Founder and Chief Executive Officer of Dada Group. “The delivery and e-commerce sectors have been tested in new ways following the COVID-19 outbreak, and we are incredibly proud of the work we’ve done to continue providing our customers with vital supplies and innovative and convenient shopping solutions. Our mission has always been to bring consumers everything on demand, and our fifth Festival represented a key milestone for our company. I’m confident that Dada Group will continue to raise the bar for what’s possible in 2020 and beyond.”

During the COVID-19 outbreak in China, Dada played a critical role in providing essential products such as medical supplies and fresh produce to customers as they increasingly opted for delivery services. The number of orders on Dada’s platform increased fourfold and the Company matched this unprecedented demand while creating over 35,000 new jobs in partnership with JD.com. During this time, the Company also set up a health and safety task force, implemented emergency procedures, stabilized prices, guaranteed deliveries, launched “Contactless Delivery Services,” and provided extra insurance, health services and protection for riders as they distributed vital resources to people across the country. Dada has emerged from this period of uncertainty stronger and as the spread of COVID-19 stabilizes in China, the populace is eager to consume at a higher rate. In Wuhan, online sales on Peak-day increased 1.2 times compared with last year.

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