Dada Nexus Limited (NASDAQ:DADA) Q4 2022 Earnings Call Transcript

Andre Chang: I will translate my question myself. So my questions are related to the traffic allocation from JD. So can management give us an update about the traffic source from multiple entry points in JD, such as by now, nearby, et cetera? And which are the area that provides more growth driver in their view in the future. And second question is about the recent how the debate the strategy change of JD Group to give more support on the lower-priced products and the penetration into the lower-tier cities. Will that affect our traffic from JD Group or will actually be no chance for opportunity if we can provide competitive prices from our auto channel.

Jeff Huijian He: Thank you for your question. In terms of GMV mix across the multiple entry points on day we have 2 main entry points. The first is search or recommendation fleet on the JD homepage that accounts for 60% to 70% of our total GMV on the channel on ad platform. And the second main entry point is the nearby page. The nearby page is the faster — is a faster-growing entry point. In Q4, the GME contributed by the GM from the nearby grew more than 300% year-over-year.

Jeff Huijian He: So in terms of the drivers for the GMV growth, the first and most prominent growth driver is the expansion — continued expansion on the supply front. We are continuously expanding our SKU selection in more categories and more regional grid. So the second driver is our continuous iteration and will upgrade in our product capabilities. For example, we are I think increasing our exposure rate among the repeat customers of Shop — now in search results. And the third driver is the retention of users who have experienced the convenience of our demand shopping through search results. We will retain them with our nearby shopping channel to increase their consumer stickiness and have informed the packing habit. And to answer your second question about day strategic change for more low-priced offerings.

We are relatively optimistic about the impact on our platform. The main reason for that is in some categories, the offline channels is efficient in terms of the supply chain. So we will gain faster growth in these categories. In some categories, we have achieved double-digit penetration rate. And our long-term target remains to penetrate 50% of JD users.

Operator: That’s all the time we have for question-and-answer session today. I’ll now hand back to Caroline Dong for closing remarks.

Caroline Dong: Thank you, operator. In closing, on behalf of Dada’s management team, we’d like to thank you for your participation in today’s call. If you require any further information, please feel free to reach out to us directly. Thank you for joining us today. This concludes the call.

Operator: That does conclude our conference for today. Thank you for participating. You may now disconnect.