Dada Group’s on-demand retail platform, JD Daojia (JDDJ), released its “Sales Report on Consumption Trends During Chinese New Year 2021” for the period Jan. 16 to Feb. 4.
Philip Kuai, Founder, Chairman and CEO of Dada Group (DADA), said, “Through our commitment to ‘bring people everything on demand,’ JDDJ consistently provides consumers in China with an extensive variety of products through the one-hour delivery service provided by Dada Now.”
Product sales increased across the board, with consumers opting to stay home with their families instead of going out to celebrate the new year, and household consumables including milk, mushrooms, oranges, potatoes and chicken breasts were the top selling products.
As more consumers remained indoors for the holidays, some tried to eat healthy, with salad sales increasing by 40x, while others either drowned their sorrows or brought the party indoors, with brandy sales jumping 11% compared to the previous year.
Sales of festival gift boxes increased by 300% year-on-year, while home entertainment products including games and mobile phones saw healthy increases in demand, together with pandemic-related products like face masks and sanitizers.
KeyBanc analyst Hans Chung initiated a Buy rating on Dada last month, setting a Street-high price target of $55. This implies upside potential of around 21% from current levels.
Chung praised Dada’s strong supply chain and proprietary technology solutions for retail digitalization, noting that these factors would create significant barriers to entry in the grocery retail industry that is worth RMB 9 trillion.
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average analyst price target of $45.50 suggests that DADA shares are fully priced.