Dada Group, China’s leading local on-demand delivery, and retail platform, and Lianhua Supermarket Holdings Co., Ltd. (00980.HK), the country’s major chain retail operator with a full range of retail segments, announced that they have expanded their strategic partnership, with a focus on omni-channel fulfillment, product management, and marketing. To commemorate this milestone, Philip Kuai, Founder, Chairman, and CEO of Dada Group; and Tao Xu, General Manager of Lianhua Supermarket; signed a new partnership agreement at a ceremony in Shanghai.

As a 30-year-old State-owned retail enterprise, Lianhua Supermarket and its subsidiaries operate more than 3,400 outlets including hypermarkets, supermarkets, and convenience stores across the nation. It is hoped that through the “retail plus logistics” mode, Dada can help Lianhua Supermarket improve efficiency and revenue, and work together to deliver quality products to consumers’ homes within just one hour.

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“The upgrading of the partnership with Lianhua is sign of recognition and mutual trust of our past five years of cooperation. It also demonstrates our confidence in future opportunities for further collaboration,” said Kuai. “Dada Group will adhere to the concept of ‘openness, cooperation and win-win’, continuously create value for our partners, and lead the development of the industry together with high-quality partners to better meet consumers’ real-time shopping needs.”

“JDDJ (the on-demand retail platform of Dada Group) has always been a key partner of Lianhua Supermarket in the field of retail digitalization and transformation. The expanded partnership with Dada Group is an important move for Lianhua Supermarket to further enhance its online business,” said Xu. “Through the cooperation, Lianhua Supermarket will vigorously expand online channels and accelerate online and offline integration.”

According to the agreement, Dada Group will continue to work together with Lianhua Supermarket in the fields of online traffic support, fulfillment optimization, product management, user operation, and marketing activities.

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In the first three quarters of this year, nearly 900 Lianhua Supermarket stores have been integrated into JDDJ platform. Lianhua Supermarket plans to launch all its offline stores on JDDJ by the third quarter of 2021 and ensure the product supply on the platform.

As early as January 2016, Lianhua Supermarket already started to cooperate with Dada Group. JDDJ’s data showed that Lianhua’s sales on the platform increased by nearly 20 times from 2016 to 2019. Lianhua Supermarket has nearly 900 online stores on JDDJ, and sales in the first half of this year have reached the level of 2019 and are on track to double year-on-year sales by the end of 2020.

During this year’s 415 Anniversary Festival of JDDJ, 618 Shopping Festival, and 1020 Supermarket Shopping Festival, Lianhua Supermarket’s sales increased significantly month-on-month. Since the beginning of this year, the number of online users placing orders on JDDJ has increased by 70 percent compared with last year.

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