On August 24, 2020, Pepsi Foods (China) Co., Ltd. (“PepsiCo”), a global player in foods and beverages, and Dada Group (“Dada”), a leading local on-demand delivery and retail platform in China, announced the expansion of their existing strategic partnerships. Philip Kuai, Founder, Chairman and CEO of Dada Group, and Anne Tse, Senior Vice President and General Manager of PepsiCo Food Greater China, signed a renewed cooperation agreement.
PepsiCo and Dada’s partnership began in 2017, with brands such as Lays, Cheetos, Doritos, Bite of Sunshine, and Guige, having been added to JDDJ’s platform. In the past three years, PepsiCo's sales on JDDJ has been growing at a rapid pace, and from January to July 2020, PepsiCo's sales on JDDJ exceeded those of the same period in 2019.
With the renewed agreement, the two companies will focus on enhancing PepsiCo's sales growth on JDDJ, and together will drive innovation in the local on-demand retail business model for food and beverage brands. This expanded partnership is highly significant for both companies: PepsiCo benefits from JDDJ’s far-reaching, powerful platform that brings offline retailers online while Dada further establishes itself as a leader in the local on-demand retail market.
In the partnership agreement, JDDJ agreed to:
- Provide PepsiCo with consumer marketing analysis tools for the snack category;
- Help PepsiCo attract new users through marketing campaigns and increase user retention;
- Aggregate retailers and regional resources in its intricate marketing ecosystem and tailor differentiated product strategies for different channels;
- Utilize its Haibo system to improve shelf inventory and price control;
- Offer compelling discounts to customers to promote user traffic; and
- Offer one-hour delivery to grow PepsiCo's uni marketing and sales and increase consumption among young users.
"JDDJ is committed to becoming a core partner of PepsiCo in the on-demand retail market,” said Mr. Kuai, Founder, CEO and Chairman of Dada Group. “We will focus on PepsiCo’s brand sales growth, category operations and uni marketing strategy as it increases its market share and penetration in the local on-demand retail market in China."
Ms. Tse noted, “As consumers increasingly demand e-commerce solutions, at PepsiCo we are committed to establishing our presence in the on-demand retail category while providing high quality food and beverage products for our customers. By expanding our strategic partnership with Dada Group, we bring our products closer to consumers and provide them with a new level of ease and convenience.”
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