On May 16th, DADA Group (Nasdaq: DADA) released its Q1 2024 results. In the first quarter, the total revenue of Dada Group was 2.5 billion yuan, and the revenue of Dada Express increased by 57% year-on-year to 1.2 billion yuan, reaching a new high in the past eight quarters. Fully integrating into the JD ecosystem, the original instant retail brands JD Houda and JD Daojia have been fully integrated and upgraded to "JD Instant Delivery", optimizing the user experience comprehensively.
In the first quarter, the monthly average number of users and order volume of JD App's field achieved a year-on-year growth of over 70%, and the growth rate in April further increased to over 100% year-on-year. In the first quarter, the GMV from JD App's field increased by over 30% year-on-year, with the GMV of the second delivery channel increasing by over 200% year-on-year. In March, the repeat purchase rate of JD App users in the following month increased by more than 30% year-on-year, and the activity of high-quality users continued to increase. JD Instant Delivery users' mental health continued to enhance.
At present, the original consumer touchpoints of JD App have all been updated to "instant delivery", including the top double homepage entrance name, search result tags, etc. It is worth noting that the JD App homepage has gradually launched a special section for instant delivery. While merchants and products gain more exposure, consumers will also enjoy more diverse promotional activities. While achieving rapid growth, the penetration rate of JD's instant retail service is expected to continue to rise among JD users.
In 2024, with brand upgrading, Dada Group entered a new journey of comprehensively improving user experience with a user centered approach, focusing on a healthy growth strategy, and achieving long-term sustainable business development.
Upgrade the instant retail brand to "JD Instant Delivery"
JD's user penetration rate has rapidly increased, with GMV of instant delivery channels increasing by over 200% year-on-year
In the first quarter, JD.com continued to make efforts in both supply and demand to improve user experience. JD Second Delivery continues to expand cooperation with high-quality merchants, with a year-on-year increase of over 80% in the number of active stores in the JD App field. In addition, JD's instant delivery linkage merchants have further lowered the free shipping threshold from 59 yuan to 29 yuan, and the event has covered nearly 80% of stores. The conversion rate of new customers has improved by 20%, the 7-day retention rate has increased by more than 10%, and the repurchase rate of old customers has increased by nearly 30%. As of the end of March, the proportion of high priced star rated products in the JD App market increased by more than 6 percentage points year-on-year.
In the first quarter, the GMV from JD App's field increased by over 30% year-on-year, among which the GMV of the instant delivery channel increased by over 200% year-on-year. The penetration rate of JD instant delivery retail among JD users continued to increase. In the first quarter, the monthly average number of ordered users and order volume in the JD App field achieved a year-on-year growth of over 70%, accelerating by more than 50 percentage points compared to the fourth quarter of last year. In the just past April, the year-on-year growth rate of the number of ordering users and order volume further accelerated to over 100%. At the same time, user stickiness is also increasing. In March, the repurchase rate of users in the JD App field increased by over 30% year-on-year in the following month.
At the level of subcategories, JD Instant Delivery has also demonstrated the ability to continuously empower business growth: in the first quarter, JD Instant Delivery continued to deepen cooperation with top convenience store brands such as Meiyijia, with over 5000 new online stores added and GMV from convenience stores increasing by more than five times year-on-year. In the first quarter, in terms of mobile phones, brands such as Xiaomi saw a nearly 100% year-on-year increase in GMV, and over 3000 new stores for computer and digital products were launched. GMV maintained a rapid growth of nearly 40% year-on-year. In terms of home appliances and home furnishings, new smart home appliance brands such as Yunmi have been signed, promoting the launch of over 6000 new stores. The GMV brought by home appliances and home furnishings has increased by nearly 150% and over 40% year-on-year, respectively. Collaborated with top chain merchants in the beverage industry, resulting in a nearly double year-on-year increase in GMV; Deepen cooperation with sports and outdoor brands, driving the overall GMV of clothing categories to increase by more than twice year-on-year.
Dada Express's revenue growth rate reached a new high in the past 8 quarters
Collaborate with top catering companies to provide efficient performance
In the first quarter, Dada Express achieved a high growth rate of 57% year-on-year, reaching the highest in the past eight quarters, once again exceeding market expectations, with a business revenue of 1.2 billion yuan, based on comprehensive optimization of its refined performance capabilities. In the first quarter, Dada Express teamed up with more top catering customers and achieved breakthroughs in cooperation with top customers such as Yum! China; Tu Yanping, a rider of Dada Express, was awarded the "2023 Excellent Delivery Provider" and "Best Operation Guarantee Award" by Luckin Coffee. In the first quarter, Dada Kuaishou and Dongfang Zhenxuan reached a cooperation agreement to fully undertake the latter's hourly delivery business, and together with Dongfang Zhenxuan, provide consumers with a convenient consumption experience of "live streaming and 1-hour delivery to home".
In terms of the business of Dada Express platform, thanks to the continuous penetration of professional markets and other scenarios, the improvement of high-value order service experience, and the optimization of pricing ability, the completion volume of platform business in the first quarter continued to steadily increase year-on-year. The quality, cost, and efficiency of Dada Express's real-time fulfillment service have been widely recognized by merchants and users.
Dada Express continues to leverage the social and livelihood value of the platform's "employment reservoir". The 520, 618, and summer promotions are coming soon. In preparation for a surge in orders, Dada Express has recently launched the recruitment of summer knights for 2024, investing 50 million yuan in knights subsidies to attract more flexible employment workers. In March of this year, some Shanghai Dada Express riders were the first to move into government subsidized new apartments, effectively improving their quality of life.