1. News
August 13, 2018

Walmart and JD.com invest $500m in Chinese online delivery firm

Supermarket retail major Walmart and e-commerce platform JD.com have invested $500m in Chinese online grocery delivery firm Dada-JD Daojia in a latest financing round.

Supermarket retail major Walmart and e-commerce platform JD.com have invested $500m in Chinese online grocery delivery firm Dada-JD Daojia in a latest financing round.

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What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The funding comprises about $320m from Walmart and comes after the retail giant invested $50m in Dada-JD Daojia in 2016.

Dada-JD Daojia was created following the merger of JD.com’s online-to-offline business (JD Daojia) and crowd-sourcing delivery platform Dada Nexus.

Dada operates through a network of five million delivery staff, while JD Daojia partners with retail stores to provide one-hour delivery services.

Walmart China president and CEO Wern-Yuen Tan was quoted by Reuters as saying: “We are confident that this deeper collaboration with Dada-JD Daojia will enhance our omni-channel footprint and deliver a better O2O (online-to-offline) customer experience.”

The US retailer has been taking measures to gain a strong foothold in China, including the opening of a high-tech supermarket earlier this year.

The supermarket allows customers to pay for items that are available on Walmart’s virtual store on JD Daojia’s platform via smartphones, skipping lines at the checkout counter.

“This deeper collaboration with Dada-JD Daojia will enhance our omni-channel footprint.”

Chinese retail market space is dominated by Alibaba and Tencent Holdings, which have so far invested more than $10bn on retail deals and are focused on integrating online and offline shopping platforms to enrich the customer experience.

Alibaba operates Hema supermarkets that are based on its New Retail concept and deliver groceries and other items.

Shoppers at Hema can make payments through Alipay, which is a mobile-payments platform owned by Alibaba’s affiliated-related company Ant Financial.

In January, the tech giant unveiled plans to open 30 new Hema stores in Beijing by the end of the year.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.