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Dada Group and Ferrero Announce Strategic Partnership for New On-Demand Retail Model for Snack Food


News provided by

Dada Group

Jan 27, 2021, 04:27 ET

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SHANGHAI, Jan. 27, 2021 /PRNewswire/ -- Dada Group (Nasdaq: DADA) ("Dada" or "the Company"), China's leading local on-demand delivery and retail platform, and Ferrero, the global leading chocolate and confectionery manufacturer, today announced a new strategic partnership to create a new on-demand retail model for snack food. Through this agreement, Dada Group's JDDJ further promotes the digitalization of the snack food industry for win-win partnerships, while increasing online sales.

The Strategic Co-operation Signing Ceremony of Ferrero and Dada Group

Mauro De Felip, General Manager of Ferrero China, said, "The Chinese retail market and consumer lifestyles keep changing, which requires companies to have acute industry insight and efficient execution to maintain competitive advantages. Through the in-depth cooperation with JDDJ, Ferrero hopes to embrace the innovation and opportunities in the emerging O2O market, keeping the leading position in the era of new retail."

Wenqi Yang, Head of JDDJ's Branding Business, said, "JDDJ will work with Ferrero to explore a new model of on-demand retail of snack food, and forge in-depth cooperation in digital marketing and targeted user management to drive the online sales of Ferrero products. The two companies will jointly bring leisure time with snack food to consumers through on-demand retail and delivery."

As the leading local on-demand retail platform of Dada Group, JDDJ will collaborate with Ferrero, the world's third largest manufacturer of chocolate and confectionery, in digital marketing and targeted user management to promote the online sales on JDDJ platform. In addition to Super Brand Week event, the two companies will also launch marketing events, such as Supermarket Brands Day, targeted user management, and smart promoters.

Ferrero entered the Chinese market in the 1980s. Since the foundation in 2007, Ferrero China has been offering many world-renowned brands and products to Chinese consumers. In May 2020, Ferrero and JDDJ started the cooperation partnership, under which frequent and high-quality marketing events led to a sustained increase in online sales of Ferrero products.

During the past year, Ferrero has participated in lots of large-scale marketing events on JDDJ, such as the Super Brand Week for the Teacher's Day and Mid-Autumn Festival, resulting in a significant increase in online sales; live-streaming marketing event on Halloween, during which Ferrero's single-day sales increased by 290% on the platform compared to the previous day; and the Christmas and New Year festival promotions, topping the product sales. In 2021, Ferrero and JDDJ plan to cooperate in depth and width in many aspects, including regular promotions, festival marketing, user operations, and infrastructure.

JDDJ has built a brand marketing ecosystem based on O2O channels. Composed of marketing campaign, user development, and sales engine, it is a closed-loop marketing system extending from branding to sales. JDDJ has also created many exclusive marketing events, such as Super Brand Day, Super Fan Day, Coupling Day, and New Product Festival to help brands including Ferrero enhance their marketing and brand visibility in O2O channels, cover targeted user groups, and boost purchase frequency.

Leveraging the Livestreaming E-Commerce Model with One-Hour Delivery, JDDJ helps brands connect online and offline sales systems, promote sales at offline retail stores and bring new growth drivers in sales on O2O channels. In addition to bringing new growth driver in sales, this model can also reach young customers who are rarely covered by traditional offline channels for Ferrero, and develop them as the brand's digital user assets.

To date, JDDJ has built strategic partnerships with many world-renowned snack food brands. As the largest supermarket O2O platform in China, JDDJ covers more than 1200 cities and counties across the country, with 40 million annual active users.

About Dada Group

Dada Group is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China's largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The Company's two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA."

About Ferrero China

Since Ferrero Group's most renowned brand - Ferrero Rocher - entered the China market in the 1980s, Ferrero has gradually gained recognition and huge popularity among Chinese consumers. In 2007, Ferrero China was officially founded, and the company further increased its investment in China, bringing many world-renowned brands and products to Chinese consumers. In 2009, Ferrero introduced the corporate social responsibility programme "Kinder Joy of Moving" into the China market, spreading the joy of moving to China's young generation. In 2015, Ferrero's 1st China manufacturing plant was established and put into operation in Hangzhou. The plant plays a pivotal role in providing innovative confectionery products with ever-improving freshness to the local Chinese market as well as Asian market. Now, Ferrero has successfully established a leading role in China's chocolate and confectionery industry and has gained abundant brand popularity.

SOURCE Dada Group

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