SHANGHAI, Nov. 16, 2021 /PRNewswire/ -- Dada Group (Nasdaq: DADA), China's leading local on-demand delivery and retail platform, Mars Wrigley China and Kantar, jointly released the White Paper on Snack Food Category in O2O Consumption on Monday. Based on the big data on the JDDJ platform and Mars Wrigley China, the White Paper provides in-depth industry insights into the on-demand consumption of snack food, and analyzes the latest trends of the snack category in the O2O (Online to Offline) commerce and its future plan in China.
The COVID-19 pandemic has accelerated the changes of consumption patterns and retail market. With on-demand retail services represented by JDDJ, Chinese consumers can place online orders and receive the products delivered from nearby stores within one hour. According to the White Paper, the O2O market size of snacks exceeds 1 billion RMB, online sales grows by 32%, and the average transaction value (ATV) on JDDJ is about 51 RMB, higher than offline consumption. Snack food has become one of the most important categories for O2O commerce for its high growth rate and ATV.
Moreover, the snack category is also characterized by "high penetration", "impulse buy" and "high purchase frequency", promising the potential for sustained growth in the O2O commerce. According to the Paper, online sales of snacks only accounts for 18%, while offline consumption accounting for 64%. There is a vast opportunity for growth in O2O and omni-channel marketing. About 72% of those surveyed want to purchase snacks as soon as they see them. Compared to other daily necessities such as rice and oil, snack food is a high-frequency consumption category, with per capita 22 purchases per year.
In terms of consumption behaviors, the East China and South China consumers are the principal part of buyers of snacks on O2O platforms, while Northeast China and Northwest China see a rapid increase in sales. Consumers in first- and second-tier cities prefer healthy and nutritious nuts, whereas those in third- and fourth-tier cities have a fondness for chocolate.
Brands are a key purchasing driver for snack food, and on-demand retail platforms also become an important channel for the brand's business growth. Through the search analysis of key words, it shows that brands' names have become an important search element for consumers when shopping snacks. Among them, leading brands such as Mars Wrigley China and PepsiCo Foods have contributed to the vast majority of the sales growth of snacks.
For brand marketing, JDDJ has created its IP (Intellectual Property) marketing matrix including Super Brand Day, Super Fan Day, Supermarket Brand Season, and Super Couple Day. Through Dada's partnership with JD, the omni-channel marketing ecosystem covers JD.com's over 530 million high-quality users and JDDJ's over 50 million active consumers, creating a new O2O consumption scenario and promoting the marketing and sales growth of brands. During Mars Wrigley China's Doublemint and Wutiaoren marketing campaign held from September 7 to 11, the Doublemint saw a year-on-year increase of 85% in sales through the promotion on JDDJ and JD.com.
Regarding the future plan of on-demand retail of snacks, the White Paper proposes solutions such as search and products optimizing to make products "purchasable" and "visible" and continuously improve shopping experience.
About Dada Group
Dada Group is a leading platform of local on-demand retail and delivery in China. It operates JDDJ, one of China's largest local on-demand retail platforms for retailers and brand owners, and Dada Now, a leading local on-demand delivery platform open to merchants and individual senders across various industries and product categories. The company's two platforms are inter-connected and mutually beneficial. The Dada Now platform enables improved delivery experience for participants on the JDDJ platform through its readily accessible fulfillment solutions and strong on-demand delivery infrastructure. Meanwhile, the vast volume of on-demand delivery orders from the JDDJ platform increases order volume and density for the Dada Now platform. In June 2020, Dada Group began trading on the Nasdaq Global Market, under the ticker symbol "DADA."
About Mars Wrigley China
Mars Wrigley is the world's leading snack food manufacturer and distributor. Headquartered in Chicago, Illinois, Mars Wrigley employs over 34,000 Associates across nearly 70 countries to advance its purpose of "Better Moments Make the World Smile" by producing and distributing chocolate, chewing gum, mints, and fruity confections.
Mars Wrigley offers a rich portfolio of the world's best-loved brands such as DOVE®, SNICKER®, M&M's®, CRISPY®, DOUBLEMINT®, EXTRA®, 5™, TATA®, PIM POM®, SUGUS®, SKITTLES® and MALTESERS®, which bring happiness to more than 180 countries and regions every day.
As Mars China's largest business segment, Mars Wrigley is continuously introducing innovative products to cater to Chinese consumers' increasing demands. Moreover, Mars Wrigley is also embracing a multi-channel approach to offer Chinese families a more convenient and optimized shopping experience as well as healthier and diversified products.
About Kantar
Kantar is the world's leading evidence-based insights and consulting company. We have a complete, unique and rounded understanding of how people think, feel and act; globally and locally in over 90 markets. By combining the deep expertise of our people, our data resources and benchmarks, our innovative analytics and technology, we help our clients understand people and inspire growth.
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