Scan the QR code in the image to register Recently, Dada Group, a local on-demand retail and delivery giant listed on Nasdaq, released its unaudited 2020 financial report, marking its first annual report disclosure since going public. Overall, Dada Group's business growth is robust, with strong performance in partner clients, but such impressive results are likely to attract more attention to this sector. -01- Strong Performance Growth, Leading Position in Both Segments According to the financial report, Dada Group's revenue significantly exceeded market expectations, with business maintaining strong growth momentum and core performance indicators achieving rapid growth. Dada Group's total revenue for 2020 was 5.7 billion RMB, up 85% year-over-year. In the 12 months ending December 31, 2020, Dada Now delivery orders reached 1.1 billion. JD Daojia's total GMV was 25.3 billion RMB, up 107% year-over-year. In fiscal 2020, Dada Group's total net revenue primarily came from JD Daojia and Dada Now. JD Daojia's net revenue was 2.305 billion RMB, up 109.0% from 1.103 billion RMB in the same period last year. The increase in total GMV compared to fiscal 2019 was primarily driven by growth in average order size and active consumer numbers. The growth in online marketing service revenue from brand owners' increasing promotional activities also contributed to the increase in net revenue generated by JD Daojia. Dada Now's net revenue was 3.435 billion RMB, up 72.0% from 1.997 billion RMB in fiscal 2019, mainly due to an increase in order volume from logistics companies and same-city delivery services for chain merchants. In the earnings call, Dada Group's founder, chairman, and CEO, Philip Kuai, stated that according to iResearch data, in 2020, JD Daojia remained the leading O2O platform for local retail supermarkets in China, with market share increasing from 21% in 2019 to 25%. Meanwhile, Dada Now continued to consolidate its leading position in China's socialized same-city delivery platform, with market share rising from 19% in 2019 to 25%, expanding its advantage. From a business perspective, Dada Group's two main business segments—Dada Now delivery platform and JD Daojia platform—both experienced significant growth rates. This undoubtedly indicates that the trend of digitalization in local retail and changes in consumer habits are benefiting Dada's current on-demand retail sector. However, the heat of the industry track inevitably leads to intensified competition, with giants entering and new models emerging, forcing traditional physical supermarkets to accelerate digital transformation and upgrade, with leading supermarkets focusing on online business and accelerating omnichannel strategic transformation. -02- What Has Dada Gained by "Not Touching Goods"? To continuously strengthen their competitiveness, physical supermarkets and other retail business models are also seeking digital transformation. In the process of accelerating digital transformation and upgrading, facing pressure from community group buying models, supermarkets have two clear paths: self-operation or cooperation with third-party operators. Self-operation has many advantages, such as self-control and ownership of traffic, but the cost of building a self-operated team is evident, making cooperation with third parties the common practice. Since the merger of JD Daojia and Dada in 2016, when the only major national client was Yonghui and regional clients were only a few like Beijing Huaguan, the company has grown to help over 2,200 large and medium-sized chain supermarket stores achieve digital cost reduction and efficiency gains. In fact, Dada's breakthrough in lower-tier markets is more promising. In the fourth quarter of 2020, JD Daojia covered nearly 1,400 counties, districts, and cities nationwide, adding 200 new ones in a single quarter, with continued penetration. In Q4, GMV in lower-tier cities grew approximately 150% year-over-year. In December 2020, provinces such as Hunan, Hubei, Guangxi, Jiangxi, Sichuan, and Shandong all saw year-over-year growth exceeding 100%, indicating significant potential in lower-tier markets. Product categories are also expanding: in FMCG, deepening strategic cooperation with Unilever and PepsiCo Beverages; in beauty, deep cooperation with chain brands like Watsons, Mannings, Innisfree, and Gloria; in mobile and digital, deep cooperation with D.Phone, JD Exclusive Stores, and vivo; in pharmaceuticals, cooperation with over 80 of the top 100 chain pharmacies, covering all top 10. Dada Group's performance growth is partly due to industry acceleration catalyzed by the pandemic, and partly because it is gaining more "partners" support. The key point is that Dada Group has always adhered to the principle of "not touching goods." For brands and retailers, a pure empowerment platform is easier to cooperate with and brings fewer concerns. Thanks to this, the proportion of revenue Dada Group derives from JD's own platform is declining, while the proportion from other partners is continuously rising. To gain a deeper understanding of this track, the industry changes driven by the continuous release of digital "new infrastructure" momentum, and how FMCG companies can cooperate with O2O platforms, at the New Distribution 2021 (6th) China FMCG Channel Innovation Conference and the First China FMCG Community E-commerce Conference, to be held in Chengdu from April 1 to April 3, we have specially invited Jiang Jun, General Manager of Business Growth at JD Daojia, the leading O2O platform for supermarkets, to attend. He will provide an in-depth interpretation of the development trends in this track and how we should respond to industry changes brought about by the rise of new channels and the upgrade of old channels.