"Instant Retail First Share" Was Born: The "Flywheel Effect" Boosted The Prospect Of Dada.

On the evening of June 5th, Beijing dada group was listed on NASDAQ. The founder and chairman of the dada group and chairman CEO Kui Jia Qi said in the letter that the company has come to a new milestone. This year is a challenging year. It is only beginning to create and develop with great reverence and sense of mission.

According to the prospectus, Jingdong and WAL-MART will be the cornerstone investors to subscribe the dada group's ADS value of US $41 million 600 thousand and US $30 million respectively at IPO price. Moreover, as the two most important shareholders and partners of dada group, their support for dada also confirms its recognition of past performance, business model and long-term value of dada. (see the Internet Society for direct attack on the topic: dada group's landing on NASDAQ IPO becomes "instant retail first stock". Http://www.100ec.cn/zt/ddIPO/ )

According to public information, dada group was founded in 2014, is the first platform to start crowdsourcing logistics, and is also the leading domestic local retail and distribution platform.

At present, its business mainly includes two parts: dada express and Jingdong. Dada express is the leading local instant distribution platform of dada group, which adopts crowdsourcing mode. Jingdong is home to Dada group, one of China's largest local retail platforms.

　　 Highlight 1: lead instant logistics + retail business expansion

Chen Hudong, the research fellow of the e-commerce research center and general manager of Beijing East Xiao Tengfei Supply Chain Management Co., Ltd., said that the strategic direction of dada is the immediate delivery mode. Its partners have retail giants such as WAL-MART and Jingdong. The background is better, which is conducive to the development of the instant distribution mode.

The growing dada group expressed its intention to list in the US at the end of 2018. In December 2019, the new dada, which was merged by dada and Jingdong, was officially renamed dada group, making further plans for listing.

In the first quarter of this year, the dada group benefited from the fact that the epidemic accelerated the training of consumers' habit of choosing instant shopping mode.

Prospectus shows that from 2017 to 2019, the business income of dada group was 1 billion 218 million yuan, 1 billion 922 million yuan and 3 billion 100 million yuan respectively, of which 57.8% grew by 2018, up 61.3% from 2019. In the first quarter of 2020, the revenue growth rate was further raised to 109%.

In the 12 months ending the first quarter of this year, dada sent 822 million orders of distribution, an increase of 52.6% compared to the same period last year, while the number of active riders reached 634 thousand during the same period. The Jingdong's sales reached GMV at the end of the first quarter of this year, reaching 15 billion 720 million yuan, up 92% over the same period last year, and the number of active consumers was 27 million 600 thousand, up 65.3% over the same period last year.

The gradual rise of the "home economy" and "new infrastructure" construction made it possible for dada group to turn to "instant retail first share".

Chen Hudong believes that the use of crowdsourcing mode of logistics, a great advantage is the ability to invoke idle social resources. On the one hand, this kind of instant delivery relies on the support of the back-end big customers. On the other hand, it relies on the social idle resources of the front end. Dada just manages to operate well, so on the whole, it is still a lighter operation mode.

Jie Xiaowen, a special research fellow of the electronic commerce research center, and an expert member of the new technology promotion branch of the China Communications and Transportation Association, pointed out that dada group, as the leader of crowdsourcing logistics and instant retailing, will lead the scale expansion and quality improvement of instant logistics and instant retail business. At present, in the field of instant logistics and retailing in China, it has high popularity and consumer awareness, and has dominated the market in advance.

　　 Highlight two: retail and logistics dual drive core business to become competitive

Mo Daiqing, director and senior analyst of the network retail department of the network research center, pointed out that dada express and Jingdong are home to two independent and closely related platforms, forming a "multilateral network effect". The closed-loop effect of business flow and logistics has brought about sustained growth in the expected revenue.

The dada express delivery platform is based on the core crowdsourcing mode, and as the scale increases, all links promote the formation of the "flywheel effect". The rapid development of Jingdong can increase the order size of dada, and the optimization of dada express experience can also provide feedback for Jingdong to improve the user's stickiness and repurchase rate. This mode is also applied by other platforms, such as Jingdong mall + Jingdong logistics, American group takeaway + US distribution, starved + hummingbird, which forms complementary business. Dada express is also distributing with the US mission, and the hummingbird is ready to form the trend of "Three Kingdoms".

Benefiting from the rapid development of the electricity supplier industry, as the outlet behind the electricity supplier's outlet, dada has so far invested in top-level funds and strategic partners such as Sequoia, DST, Jingdong, WAL-MART and so on, with a total financing amount of about $1 billion 300 million.

Instant retail is a trend of development, especially during this epidemic period, which shows advantages and accelerates users' consumption habits. With the development of digital economy, instant local distribution has gradually become a rigid demand for users and penetrates into all aspects of people's lives. This market has attracted the continued participation of the big business tycoons. The dada group needs to form its core competitiveness in its track. Therefore, listing is the main business of the channel. Mo added.

Prospectus shows that from 2017 to 2019, dada group's revenue from major shareholder Jingdong accounted for 56.7%, 49.1% and 50.5% respectively, and related transactions basically fluctuated at 50%. From August 2018 to the end of the year, the whole year of 2019 and the first three months of 2020, the revenue from WAL-MART was 4.6%, 13% and 14.9% respectively, and related transactions also showed an increasing trend.

Dada express and Jingdong are home to two independent and closely related platforms, forming a "multilateral network effect". The closed-loop effect of business flow and logistics has brought about sustained growth in expected revenue.

Chen Liteng, an e-commerce analyst at network economic research center, pointed out that there are more needs for users in the 5 kilometer life circle of local life. Instant distribution is the standard of providing local life services, and the border of takeaway distribution is also expanding. From the beginning of the catering to various categories such as fresh, medicine, books and so on, value-added services are more substantial. A battleground. Dada listed this time to prepare sufficient ammunition for the next fierce competition.

　　 Highlight three: dada IPO future development can be expected

Baum, chairman of the network research center of the electronic commerce research center, and Bao Yuezhong, chairman of the enterprise management consulting Co., Ltd., believes that in the face of market competition, the main direction of the future business development of dada group is to quickly complete the market layout in all fields. The dada group should take advantage of the current layout to quickly cut into other market areas, bringing greater market space to the development of dada group.

Mo Daiqing said that for the dada group, the listing will further expand its scale and intensify competition in the local retail and distribution field. Dada express and Jingdong are home to two independent and closely related platforms, forming a "multilateral network effect". The closed-loop effect of business flow and logistics has brought about sustained growth in expected revenue.

Commented by Yu De electronic research center's special researcher and founder of Yu Ge network, the dada group's "reverse world" listing can be seen as a bright spot in the current epidemic spreading panic. Dada combined with instant logistics and instant retail, and found the market space in "fast economy". The digital business of traditional business + self operated instant logistics mode has realized the two-way profit path and comprehensive competitiveness of 2B and 2C, relying on Jingdong and WAL-MART base. Dada's "big infrastructure" has been deep enough. Despite the competition, the dual potential energy that has been formed is the unique advantage of dada, and the future is worth looking forward to.