---
title: "Nestlé, Yili, PepsiCo All Tied to JD Daojia; Parent Company's Stock Has Risen Over 250%"
description: "In the post-pandemic era, instant retail platforms like JD Daojia are favored by major FMCG brands and have seen stock prices surge. Dada Group, parent of JD Daojia, saw its market value approach $12.7 billion after three consecutive days of record highs."
author: "小食代"
publisher: "New Distribution"
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published: "2020-11-29"
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# Nestlé, Yili, PepsiCo All Tied to JD Daojia; Parent Company's Stock Has Risen Over 250%

> In the post-pandemic era, instant retail platforms like JD Daojia are favored by major FMCG brands and have seen stock prices surge. Dada Group, parent of JD Daojia, saw its market value approach $12.7 billion after three consecutive days of record highs.

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In the post-pandemic era, instant retail platforms occupying the new trend are not only favored by major food and beverage FMCG brands but also "dance to the tune" in the capital market.
After the first wave of stock price increases following the release of Q3 financial results last Friday, shares of Dada Group, parent of local instant retail platform JD Daojia, hit new highs for three consecutive days this week, setting record highs since its IPO. As of press time, Dada Group's market value approached $12.7 billion.
In addition to JD Daojia, the group also owns Dada Now, a local instant delivery platform. JD Daojia, relying on Dada Now and retail partners, provides consumers with delivery of various products including supermarket convenience, fresh produce, digital 3C, and pharmaceutical health within about one hour; Dada Now focuses on providing instant delivery services to various merchants and individual users through a crowdsourced delivery network.
**Data shows that Dada achieved total revenue of RMB 1.302 billion in Q3, a year-on-year increase of 85.5%; one of its core businesses, JD Daojia platform, saw revenue increase 91% year-on-year to RMB 583 million.** Benefiting from an increase in average order value and active users, JD Daojia's gross merchandise volume (GMV) grew 90.7% compared to the same period last year.
Kuang Jiaqi, founder, chairman, and CEO of Dada Group
Kuang Jiaqi, founder, chairman, and CEO of Dada Group, once stated that JD Daojia, as an instant retail platform connecting online and offline, brands and retailers, will fully invest and utilize its accumulated resources and experience in omnichannel marketing, category operations, and supply chain capability building to comprehensively assist brands in digital marketing and help them build a digital-based user management system.
He also revealed in the Q3 analyst meeting that JD Daojia has deepened strategic cooperation with several well-known brands, with advertising and marketing revenue increasing 400% year-on-year.
Chen Zhaoming, CFO of Dada Group, stated that based on the rapid growth momentum, JD Daojia platform revenue is expected to achieve 100% year-on-year growth in the second half of the year.
**-01- Pandemic Creates New Trend**
In February this year, the Omnichannel Committee of the China Chain Store & Franchise Association released a survey showing that under the impact of the pandemic, offline companies' home delivery business generally grew between 80% and 200%, with some companies seeing online business grow more than three times year-on-year from the first day of the Lunar New Year (January 25) to the Lantern Festival (February 8).
For many food and beverage FMCG brands, **"home delivery" and O2O channels have become a "powerful weapon" to break through sales channel restrictions.**
**On one hand, home confinement during the pandemic significantly reduced consumer spending outside the home, and transportation restrictions severely impacted offline retail channels, affecting sales of many food and beverage companies in traditional channels, with a large amount of demand quickly shifting online.**
**On the other hand, consumers' demand for rapid delivery of food and beverages as daily necessities has greatly increased, and the demand for short-distance delivery around the home has also significantly risen.**
However, for brands whose core business was originally focused on offline traditional channels, completing the "homework" of online channels in the short term has become a major challenge. In this trend, instant retail platforms represented by JD Daojia have undoubtedly become the first choice for many brands.
The prospectus released by the company in May this year showed that in Q1 this year, driven by the pandemic, Dada's net revenue surged to RMB 1.099 billion, close to the full-year net revenue level of 2017.
To help brands gain traffic and transactions from massive online information, JD Daojia launched multiple marketing IPs such as **"Super Brand Day," "Super CP Day," and "Supermarket Big Brand Season."** It is understood that the platform also pioneered the **"Live Shopping 1-Hour Delivery"** O2O live streaming model, connecting the entire shopping chain of watching live streams, placing orders online, and receiving goods within one hour, bringing new sales growth engines and new marketing positions for brands' O2O channels.
According to iResearch reports, JD Daojia currently ranks first in market share among local retail supermarket O2O platforms in China, increasing from 21% in 2019 to 24% in Q3.
**-02- FMCG Brands Increase Layout**
After noticing the above new trends, many brands quickly adjusted their strategies and increased their layout in "home delivery" and O2O channels.
In Q3 and Q4 this year, multiple international and domestic well-known FMCG brands including PepsiCo, Nestlé, Mengniu, Yili, Mars, and Kimberly-Clark successively announced upgrades and deepened strategic cooperation with Dada Group.
Kuang Jiaqi and brand executives group photo
At the Nasdaq bell-ringing ceremony for Dada Group's listing on June 5 this year, representatives from leading domestic and international FMCG brands such as Unilever, Yili, Mengniu, PepsiCo, Mars Wrigley, and Nestlé were present to witness the moment.
Kuang Jiaqi also revealed at the analyst meeting that dozens of well-known brands including Unilever, P&G, and PepsiCo have joined JD Daojia's "Live Shopping 1-Hour Delivery" project.
As one of the earliest brands to cooperate with JD Daojia, Mars Wrigley signed a strategic cooperation agreement with JD Daojia in January this year and announced a three-year cooperation vision, including in-depth cooperation focusing on scenario building, new product co-creation, member operations, and data cooperation, to jointly enhance sales growth of the snack food category on JD Daojia platform.
Data shows that in the first half of this year, Mars Wrigley achieved triple-digit growth on JD Daojia platform. During the CIIE, Mars Wrigley revealed to Foodinc that from January to August this year, its sales on JD Daojia platform achieved a 2x year-on-year increase, ranking first in snack food category sales on JD Daojia.
Yili and Yihai Kerry, which first tried JD Daojia's "dual-brand president group live streaming带货" new model in September this year, also reaped rewards.
According to reports, on September 5, the "cream CP" special live stream attracted over 670,000 viewers, setting a new record for JD Daojia's live streaming room. Both Yili and Yihai Kerry saw daily sales more than double compared to the previous week, with Yihai Kerry's single-day sales setting a new record on JD Daojia platform.
**-03- Creating New Opportunities**
Foodinc noticed that many food and beverage FMCG brands believe that the online consumption habits cultivated during the pandemic and the explosive growth of "home delivery" and O2O channel businesses will become new development trends in the post-pandemic era.
For example, Nestlé CEO Mark Schneider previously stated that **the biggest change the pandemic brought to the food and beverage industry is the shift from out-of-home consumption to at-home consumption, and he believes Nestlé has many opportunities in introducing its products and services into the "explosively growing" new delivery services.**
Noriyuki Umebara, Managing Director of Guangzhou Yakult, also recently told Foodinc that with the change in consumption patterns brought by the pandemic, e-commerce sales channels have gradually become important customers. This year, the company has strengthened cooperation with multiple O2O platforms including JD and physical stores.
In fact, for brands, O2O channels like JD Daojia go far beyond solving the "last mile reach" problem; their digital advantages can also assist brands in achieving breakthroughs in omnichannel digital management, channel下沉, and big data precision marketing.
One example is that, according to financial reports, Dada's Haibo system has been launched in dozens of medium-sized chain supermarkets such as Zhongbai Warehouse, Huaguan, Aeon, and Lotus, with more than 1,500 large and medium-sized chain supermarket stores applying it, and the member system approaching 35,000 retail stores. This important progress also coincides with brands aiming to develop O2O channels.
In addition, with JD Daojia's rapid coverage of traditional offline channels, brands can carry out O2O business in more lower-tier cities, not only gaining new growth momentum but also mastering more comprehensive big data on the lower-tier market.
Meanwhile, with the popularity of new social e-commerce like live shopping, many brands have begun to invest online marketing resources in O2O platforms to achieve more precise delivery results. According to Dada's Q3 financial report, due to increasing brand promotional activities, the increase in online marketing service revenue also contributed to the growth of JD Daojia platform revenue.
It is foreseeable that the O2O track is expected to see a full explosion in the post-pandemic era, and the good show of instant retail platforms represented by JD Daojia may just be beginning.
Source: Foodinc (ID: foodinc)


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