As the omni-channel strategy and innovative technology keep transforming China’s retail market, regional retailers are committed to bringing a seamless online and offline shopping experience to customers in lower-tier cities of China.
China’s leading on-demand logistics and omni-channel ecommerce firm, Dada-JD Daojia held a parallel forum on Friday at 2019 China National Retail Congress in Qingdao, Shandong Province, addressing the successful practice of its omni-channel fulfillment solutions.
The topic of this forum is “regional retailers embracing the new opportunity of omni-channel strategy”. He Huijian, Vice President of Dada-JD Daojia, Lian Yanjie, General Manager of Retail Empowerment Department, and Luo Jiaxing, General Manager of City Business Department, presented their perspectives on the opportunities and challenges of omni-channel strategy, whereby shining a light on the essence of retail innovation and delivering an accurate prediction for omni-channel future.
More than 120 entrepreneurs, senior executives and experts of China’s retail industry participated in the event and shared their distinctive thoughts on omni-channel strategy. “Facing this historic opportunity for the new retail, the omni-channel business aggregation platform and fulfillment system offered by Dada-JD Daojia, have provided the perfect tools to fly in the omni-channel sky for retailers.” Yang Yu, a retailing expert said on the stage.
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Omni-channel retail strategy is a growing trend in China
According to the China National Bureau of Statistics, online retail sales amounted to only 9 trillion yuan in 2018, while total retail sales exceeded 38 trillion yuan. Meanwhile, the mainstream consumption pattern “one-hour shopping” trend expands rapidly in all regions, all categories and all customers. The omni-channel strategy is proven to have extremely strong rising potential in grocery and delivery sector.
At this stage, the slowdown of offline retailing growth has become an important problem that troubled many retailers, while the omni-channel strategy and the integration of online and offline are considered as breakthroughs in their sales growth. Whenever retailers cooperate with e-commerce platforms, applications, mini programs, or operate through their own social networks and communities, the most significant issue is improving their operation efficiency and user experience.
“Dada-JD Daojia rooted in supermarket O2O and grocery delivery, has proposed the best solution – omni-channel business aggregation platform and fulfillment system,” said He Huijian, Vice President of Dada-JD Daojia. “The core of retail is efficiency and shopping experience. And it is the mission of Dada-JD Daojia to help retailers to develop e-commerce efficiently and provide consumers with the best shopping experience.”
The “Helper” omni-channel business aggregation platform developed by Dada-JD Daojia, aims to integrate and process orders from multiple online channels and offline stores. Besides, the omni-channel fulfillment system integrating warehousing, picking and distribution, satisfies the different needs of order performance for retailers. By using the platforms, the average daily order volume of an offline store increased by 15% month-on-month, the average picking time decreased by 37%, and the time-out order volume decreased by 55%.
Lian Yanjie, General Manager of Retail Empowerment Department, said that order fulfillment has a huge impact on profit margins and user retention, which might not be highly recognized by retail outlets in the past. In fact, the longer single picking time, the higher cost and the lower profit. “According to a research of Dada-JD Daojia, 70% of the order problems related to offline store’s fulfillment, such as missed picking, out of stock, time-out, slow delivery and so on,” Lian said. “After linking multiple channels to the omni-channel data platform, the operation of the store will be perceptible, efficient and convenient.”
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Dada-JD Daojia promotes regional retailers’ sales in lower-tier cities
Since its establishment in 2014, Dada-JD Daojia has cooperated with most of leading retailers and more than 100,000 offline stores, providing more convenient and upgraded shopping experience for goods of all varieties to consumers from 133 cities in China. After covering all tier 1-2 cities and helping retailers to achieve high-speed online sales growth, Dada-JD Daojia has developed an applicable business method and sank quickly to the lower-tier cities.
Web traffic, user management and shopping experience are the keys to drive a significant online sales growth of regional retailers, according to Luo Jiaxing, General Manager of City Business Department. While web traffic and user management are the foundational business issues, shopping experience will guarantee user retention and long-term brand loyalty. The total sales of regional retailers that cooperates with Dada-JD Daojia have doubled in past half year, and some of them increased by 200%.
During the “1020 Supermarket Shopping Festival”, held from October 14th to October 20th, the total sales on Dada-JD Daojia’s platform nearly increased by 100% compared with same period last year. “The peak-day sales of some regional retailers increased by over 4 times compared with that in April,” said Luo Jiaxing.