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spk08: Good morning, ladies and gentlemen, and thank you for standing by for DADA's third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. After the management's prepared remarks, there will be a question and answer session. As a reminder, today's conference is being recorded. I will now turn the meeting over to your host for today's call, Ms. Caroline Dong, Head of Investor Relations for DADA. Please proceed, Caroline.
spk10: Thank you, Arbiter. Hello, everyone, and thank you for joining our first quarter 2023 earnings conference call. On the call today from data, we have Mr. Jeff Huijianhe, president, and Mr. Back Chen, CFO. Mr. He will talk about our operations and company highlights. Then Mr. Chen will discuss the financials and guidance. Please kindly note that during the Q&A session, Jeff will answer questions in Chinese and the consecutive translation will be provided. In case of any discrepancy between the original remarks and the translated version, statements in the original remarks should pre-vote. Before we begin, I'd like to remind you that this conference call contains flocking statements. Please refer to our latest Steve Harper Statement in the Earnings Press List on our IR website, which applies to this call. Also, during this call, we will discuss certain non-GAAP financial measures. Please also refer to our Earnings Press List, which contains the reconciliation of non-GAAP measures to the comparable GAAP measures. Finally, please note that, unlike otherwise stated, all figures mentioned during this conference call are in RMB. It is now my pleasure to introduce our president, Mr. He. Jeff, please go ahead.
spk05: Thank you, Karen, and thank you all for joining us today. During the third quarter of 2023, data group was suspended, which impacted top-line growth and made further gains in operating efficiency. Our total revenues increased by 20, and adjust the net margin improved by 11 percentage points year-over-year. I will begin today's presentation with some updates on our cooperation with JD.com and our performance during the Double 11 Shopping Festival. Followed by our pricing highlights for our two platforms. I will then hand over to Bec, take you through our detailed financial results. First, let's discuss our cooperation with JD.com. In October, Dada Group and JD.com had an on-demand tele-industry conference. It seemed to help us within reach . And we had a five-year action plan in hosting consumption enable the tailors and create jobs. Specifically, in the next five years, JTBJ and Dada Lao M2 facilitated on-demand retail consumption of over 1 trillion RMB alone with our ecosystem partners. Share with the digital transformation of more than 2 million black and yellow stores. and they cumulatively create over 10 million flexible employee opportunities. This not only demonstrates our strong confidence in the potential of on-demand retail industry, but also our commitment in serving social responsibility. Getting.com and us will strengthen our base to achieve these goals. Next, I would like to provide some highlights from the results of the 2011 short inductive. For JDDJ, pick-pay GME reached an all-time high, and the GME throughout the promotion grew robustly, with multiple categories suggesting cheaper digit growth, including equal mom and baby products, home furnishing and convenience stores. For data now, orders were fulfilled on the peak day hit another record, high of 15 million. And the total order fulfilled reached 200 million during the promotion period. Let's move on to the operational highlights for our two platforms. Starting with JDDJ, the leading on demand retail platform in China. In the third quarter, we continue to strengthen and expand our partnerships with retailers and brands, and further enhance our capability in technology innovation. Starting with retailer of corporations, during this quarter, we continue to broaden and deepen our collaboration with retailers to enrich our product offerings. At the end of September, JDDJ has onboarded more than 400,000 retailer stores. In the supermarket category, we added more top supermarket chains to our platform and have now established partnerships with 93 out of the top 100 supermarket chains in China. After we log out, our delivery waiver campaigns include the majority of supermarkets across the country at the end of June 9. We saw a lot of increase in user engagement as evidenced by improvement in both retention the purchase frequency among our users in the supermarket category. We also made progress in our collaboration with major Canadian store chains, leading to GME generated by Canadian stores on our platform growing more than eight times year-on-year. consumer elections category. In the smartphone category, KDDJF participated in the launch of new Apple products for the fourth consecutive year. After the iPhone 15 series was officially launched for sale in September. Sales in the first two hours increased by 250 compared to the sales during iPhone 14W. In addition, Android brands such as Xiaomi, Oppo, and OnePlus was also left closed in the third quarter. For the computer and accessories specifically, GME increased by 60 year-on-year. This growth was attributable to our support for new brands, weekend marketing events, and our efforts to explore diverse shopping scenarios. Notably, brands such as Style, Xiao Tiancai, Genie experienced significant growth through during this quarter. We also continue to make progress in the home appliance and home furnishing category. In the home appliance subject category, we aim to serve diversified user needs by offering differentiated SKUs and compare them with B2C channels. offering constant experience of one-stop delivery and installation. In this quarter, we established new partnerships with major appliance brands such as Haixin and Changwei, and newly onboarded 8,000 home appliance stores on 12 platforms. As a result, GME of home appliances in China grew by 70 year-on-year. The home financing sector also saw a lot of growth, with GME increasing by nearly three times year-on-year. We established a new partnership with clients such as Li-Beng Shaoxing, achieving a breakthrough in our offering of painting services. In a parallel category, we recently signed a new partnership with a number of outdoor brands, including Sikaiqi, Pika, as well as underwear brands such as Dosevillian, Aimu, and Hongdou. luggage brands such as Moody. In the third quarter, GME of the apparel category increased more than five times year-on-year. For the liquor category, GME more than tripled year-on-year in the third quarter, driven by our continuous efforts to improve the supply of cold SKUs. Let's talk about JTTJ's progress on the pending cooperation with brands. As a pioneer and leader in auto marketing for brands, in September, we officially launched the Double 10 Billion Brands Plan, which aims to help more than 10 brands achieved sales of more than $1 billion and established a benchmark brand with sales of more than $10 billion on our platform in 2024. Our brand partner pool kept expanding. Recently, we formed partnerships with leading biogeo brands including Maotai and Yanghe. Being the first on-demand retail platform, they cooperated with. We also established a new partnership with select food brands, such as Yanjun Foods, and dairy brands, such as Liuchen and Jianai. We also continued to enhance our omni-channel outdoor marketing collaborations with brands, helping them reach users through multiple channels, both on and off JTBCS. Starting in September, we collaborated with brands such as Gui Ge, Aomiao, and Mijiajin to help them enhance the exposure while innovative offline campaigns such as dancing competitions. On the final day of the event in Shanghai, Hui Ge saw a remarkable 220 year-on-year increase in sales and a 58 increase in order volume.
spk04: Next, I'd like to talk about our technology innovation efforts.
spk05: For retailers, our Omnichannel Auto Operating System continues to play an important role in improving efficiency. At the end of September, Hibor had been deployed in nearly 12,000 stores. We recently updated the hybrid systems, which allows the store-taking function to support additional business seminars and make inventory counting more efficient through regulated app region logic. Panel dimensions to use this updated function, so in 1999 job use, store-taking
spk04: For brands, we further upgraded our marketing technology.
spk05: In September, we released Hong Tu, the first grid-level marketing tool for brands in the on-demand retail industry. We improved our marketing efficiency. Through B2C plus O2O Omnichannel data analysis, Hong2 helps brands identify marketing opportunities grid by grid in terms of both consumer demand and their supply status. So as to make marketing campaigns more effective, at present, the Hong2 system has been adopted by 10 brands in cafes such as FMCG, Consumer Electronics, and Health and Wellness. Highlight brands use the Hong2 solution to manage marketing activities. So the conversion rate increased by 12%. And the average new customer acquisition cost decreased by 37%. I will now turn to Dada Now, China's leading local on-demand delivery platform. In the third quarter, we continue to extend our delivery capacity, with quarterly active riders on the Dada Now platform increasing more than 20 year-on-year. I will first discuss our care and chain maintenance business. In the third quarter, the growth rate of our land-use land-on-demand delivery services to KM&Chance accelerated to 25 year-on-year. In particular, land-use land's average K continued to grow rapidly by high double-digit rate. In addition, in the restaurant care category, we recently formed new partnerships with restaurant chains such as Ji Ye Jia and Ta Steam. We have strengthened cooperation with leading brands among our existing partners. Moving on to SME and C2C business. Thanks to a wider variety of services selections. The number of SME and C2C orders fulfilled in the third quarter increased by 40 year-on-year.
spk04: Lastly, an update on data loss autonomous devices.
spk05: We continue to consolidate our as the largest autonomous delivery platform for supermarkets in China. To date, Dardanos' autonomous delivery open platform has fulfilled more than 200,000 on-demand delivery orders for supermarkets.
spk04: That concludes our operation updates for our two platforms.
spk05: To wrap up, we delivered another strong order of financial results. We saw the growth in revenue and significant year-on-year improvement in our bottom line, along with continuous improvement in business performance. We believe our model also creates unique social value. Therefore, we set forth the five-year plan surrounding consumption, digitalization, and employment, which is in line with our strategy to realize health goals in a well-grounded community consisting of consumers, retailers, brand owners, and riders. We will continue to execute this strategy to drive substantive returns for shareholders. I will now pass the call over to Zach to go through our financial results. Thank you.
spk00: Thanks, Jason. Before we go over the numbers, just a few housekeeping items in advance. We believe year-over-year comparisons are the most useful way to judge our performance. Therefore, all percentage changes I'm going to give will be on a year-over-year basis, and all figures are in the mean D unless otherwise noted. The total net revenue in the third quarter increased by 20% to $2.9 billion. Net revenues from data now increased by 29% to 1.1 billion, mainly driven by the increases in order volume of intercity delivery services to chain merchants. Net revenues from JDDJ increased by 16% to 1.8 billion, mainly due to the increase in GMV. The increase in online marketing services revenue as a result of the increasing promotional activities also contributed to the revenue growth of JDDJ. Moving over to the expenses side, operations and support costs were too hidden. The increase was primarily due to an increase in rider cost as a result of increasing all the volume for intercity delivery services provided to various chain merchants. Selling and marketing expenses decreased to $1 billion primarily due to a decrease in advertising and marketing expenses and a decrease in incentives given to JTDJ consumers. G&A expenses decreased to $39 million as a result of decreased amortization of business cooperation agreements and a non-compete commitment related with the acquisition of JDDJ in 2016, which was substantially amortized as of June 30, 2023, and reduced the share-based compensation expenses as well as efficient expense control measures. R&D expenses decreased to $94 million, mainly due to lower R&D pro-personal costs as we enhanced our operation efficiencies. Non-GAAP net loss attributable to ordinary shareholders of data was $9 million, a significant improvement compared with the loss of $270 million in the third quarter of 2022. Non-GAAP net loss margin was 0.3%, improving by 11%. percentage points year over year. As of September 30, 2023, we had $4.4 billion in cash, cash equivalents, restricted cash, and short-term investments, achieving an increase as compared with the balance as of the end of 2022. In terms of the outlook for the first quarter of 2023, we expect total revenue to be between $3 billion and $3.3 billion, representing a year-over-year growth rate of 12% to 23%. So let's conclude our prepared remarks. Operator, we are now ready to begin the Q&A session. Thank you.
spk08: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask a question. Your first question comes from Ronald Count with Goldman Sachs. Please go ahead.
spk06: Thank you for taking my question, and thank you, Jeff, Beck, and Caroline. My first question is on how we've seen the recent trends of growth in Singles Day and Based on your 4Q guidance, the sequential, slightly slower year-on-year growth, do we see what are the drivers of our growth and how should we think about next year along the consumption trends on discretionary or for on-demand products? And my second question is on our cooperation with JD, with the JD. rebalancing kind of traffic, the $10 billion subsidy program at 3P, just how has the cooperation been, and do we see any change in the JD traffic allocation to ourselves, and any updates on the cooperation? Let me translate myself. Taiwan is here now woman can order to go selfie the ching-kong I owe a woman doing pimp Leia geese space on the go more than my kind of a minion die on one thing shall we make a tantra the R2 something that woman can tindall that's a girl her door not in don't you need a bar button that you said how jump over one piece MP Do you have any updates on our cooperation with Jindong? Thank you.
spk05: First of all, I would like to talk about the situation of Double 11. The entire installation period is relatively long, starting from mid-to-late October. From the first three weeks of October, the whole supermarket, including the specialty in the 3C category, is relatively sluggish. This is because there are more users going out, and the sales frequency of the technical services in the supermarket has dropped. Thank you for your question, Ronald. I'll first give you a brief update on the overall performance of our 2011 shopping festival.
spk09: As we all know, it's quite a long event starting from mid to late October and running all the way through mid-November. So during the first three weeks of October, growth of both the supermarket and the consumer electronics categories were on the softer side due to two factors. A, an increase in outdoor and traveling demand and affected the purchasing frequency of our supermarket category to some extent, and C, demand for some smartphone brands was not as strong as we had expected.
spk05: During the entire 21st century, we saw a good rebound in the market, especially in the supermarket segment. During the Double Eleven Shopping Festival, however, we've seen a decent recovery in growth rate, especially of the supermarkets category.
spk09: primarily thanks to our efforts in prioritizing value and the customer savings on top of the convenience of one hour delivery that we provide.
spk05: On the peak day of November 11,
spk09: We made historic breakthroughs, especially where we've seen decent growth for the supermarket category.
spk05: From Hong Kong's consumer market, we think that the consumer market is still recovering. At the same time, in the top consumer markets, accommodation, catering, cultural tourism, etc. are focusing on fast-growing commercial consumption.
spk09: Overall, the consumption market is recovering, delving into different categories. However, spending in services, including dining and accommodation, entertainment and tourism, continue to outpace the spending in physical goods. In addition, the need for on-demand retail is less prominent in outdoor scenarios for service consumption. In light of these trends, we will continue to focus on consolidating our strength on the supply side and optimizing the user experience so as to position ourselves for the increase in O2O penetration in the long term, a trend about which we are highly optimistic.
spk05: Thank you. So to provide you with an update on our cooperation with JD.com, both JD, DJ, and Dada now continue to strengthen our cooperation with JD during the quarter.
spk09: Starting with JD, DJ, First, we continued to penetrate JD's user base with the number of small and large users in the third quarter, increasing by close to 40% year-over-year.
spk05: Our traffic growth will be higher than that of the user growth. In terms of traffic access, we have continued to open up all the resources in JD. Currently, LBS characteristics are gradually integrated into 100 billion subsidies. Our traffic growth on JD has been outpacing our user growth.
spk09: as we gained access to new entry points on the JD app. For example, the LBS feature is now being gradually integrated into the $10 billion subsidy and the flash sales channels, which enables our merchants to generate incremental exposure.
spk05: In terms of search, recently, we and Jindong are testing the auto-sale of fresh heavy-duty products.
spk09: Apart from the incremental touch point we've gained, we're also making progress in the existing user interfaces. In terms of the search results, for example, recently JD.com has been testing to prioritize audio products and categories, including flash produce, and heavy and bulky items, so as to enhance user experience while improving efficiency.
spk05: And in terms of the XiaoChiDaTab,
spk09: previously known as the nearby Fujintab. We have refined the page design together with JD's product development team to drive significant DAU growth. At the same time, we are pushing forward the continuous increase in conversion rate and AOV.
spk05: I know that you are more concerned about the low price and 3P price of Jindong's oil-fuel system. I have the same explanation here.
spk09: Now, I'd like to share some observations and thoughts on the impact of JD's changing algorithm on JD-BJ platform.
spk05: We believe that small and medium-sized businesses can provide high-quality products and faster delivery services, and can also provide competitive prices based on the advantages of retail businesses. We believe our Xiaoshida service not only provides JD users with high-quality products and faster delivery, but also competitive prices that stem from our retail partners' strength in the supply chain.
spk09: Therefore, Xiaoshida is able to provide a better user experience in all three dimensions of products, prices, and services. As a result, we believe JD's new traffic allocation mechanism will benefit Xiaoshida's growth in the long term.
spk05: Xiaoshida's advantage in product quality, variety, and promotion service is very obvious. Therefore, I would like to focus on the competition in terms of price.
spk09: Xiaoshida's advantage in terms of product quality and diversity, as well as delivery speediness, is self-evident. So I would like to elaborate more on the price competitiveness of our Xiaoshida service.
spk05: We have been cooperating with our partners for many years. The years of experience in offline retail, the chain merchants we are cooperating with usually have already built strong supply chain capabilities, which enables them to provide consumers with competitive prices.
spk09: In particular, in product categories such as fresh produce and heavy and bulky items we've just mentioned.
spk05: Based on the above, in fact, retail channels bring about this kind of business. Basically, it does not require retail companies to invest extra capital and energy costs. On the basis of a lower rate, we have more space to create cooperation partners. In addition, conducting O2O business on top of their existing offline stores requires little incremental rental and personnel costs for retailers.
spk09: Given the lower selling expense ratio, significant room for our retail partners to offer lower prices on the Xiaoshida channel and provide our customers with more valuable money items. Looking at our operational results, since JD began to emphasize the pricing factor in March, our exposure among JD search results has maintained remarkable growth. For example, in Q3, the daily average search exposure of Xiaoshida's supermarket category increased by 50%.
spk05: In addition, the percentage of highly priced competitive products
spk09: in Xiao Shi Da stayed at above 30% during the November 11 shopping festival, a testimony of the overall price competitiveness of our Xiao Shi Da products.
spk04: Thank you for your question.
spk08: The next question comes from Thomas Chong with Jefferies. Please go ahead.
spk03: Hi, good morning. Thanks, management, for taking my questions. My first question is about JDDJ unit economics in Q3. Can management share about the click rate and expense ratio for different items? And on that front, how should we think about the unit economics as we go into 2024? What are the drivers behind? And my second question is about the old-to-old opportunities in China. As we mentioned in the prepared remarks, the market size is huge. But on the other hand, we also see the competitive landscape is also quite intense as well. So I just want to get some thoughts from management about how we think about the landscape in 2024. And on that front, What is the long-term direct margin that we are expecting in the coming years? Thank you. 谢谢管理层介绍我的提问。 我的第一个问题是关于GDDJ-UE可以分拆不同item的趋势。 然后如果我们看2020年GDDJ-UE economics, 我们应该从哪一个方向看到那个 tick rate 还有 expense ratio 的一个改善 我第二个问题是关于整个行业的真正格局的 我们看到 local on demand O2O 这个板块也是一个非常大的一个板块 我们应该对明年整个格局或者是 competition 的一个看法 可以分享一下嘛 然后对我们长期的一个 direct margin Thank you, Thomas.
spk00: This is Beck. So I'll address your first question, and Jeff can take the second question. So in terms of the monetization of JTTJ in Q3, the monetization rate was increased to 10%. in Q3, which is the first time we passed through the 10% threshold historically. And in the same time, our consumer incentives was further decreased to 3.3%, which is either decreasing on a Q-on-Q basis or year-over-year basis. And in the same time, our operating costs including rider cost, packing cost was 4.7%, which is decreased on year-over-year basis while increased queue-on-queue basically because seasonality in summer campaign. And in terms of, for example, like 2024, The major driver is still we will keep to increase the commission and online marketing manufacturing rate. And in the same time, we will further decrease our consumer incentives, expenses, and also operation cost side to further enhance our direction margin on a year-over-year basis. And also, in terms of the last question, your second question, in terms of the long-term margin, so basically, as we have talked about previously, so JDG could be an analogy to a traditional e-commerce platform, which is just a localized version. So in terms of the operation operation profit against GMV generated through the platform. So we are marketplace model, neutral platform model. So it should be targeted as a 3% as percentage of GMV as our long-term operating and gap operating profit for JDJ. Thank you.
spk05: Okay. Let me answer the second question about the market. I'd like to share some thoughts on your second question about the competitive landscape.
spk09: The fact that more leading Internet companies are prioritizing the on-demand retail business speaks of its great potential, and we believe the industry can easily accommodate different players to grow vibrantly in their respective areas of strength.
spk05: This is mainly due to our open and neutral positioning and the in-depth support for retailers and other platforms to build this ecosystem in the short term. In the commercial segment, we have already reached a cooperation with 93 companies in Baichang. In the mobile and mobile products segment, we have established in-depth cooperation with most of the top retailers. These rich uses tools are the basis for our continuous training and process users.
spk09: For JDDJ, firstly, our strength in the extensive partnership with chain merchants remains rock solid. This is a result of our positioning as an open and neutral platform, as well as our accumulated know-how and expertise in empowering retailers, various systems and services. Merchant ecosystem with GOAT is hard to replicate in a short time by other platforms. For instance, in the supermarket category, we've onboarded 93 out of the top 100 chains in China. In addition, in categories such as smartphones and mom and baby, we've also teamed up with most of the leading chain retailers in China. This abundance of high-quality supplies is the basis for us to continuously attract and retain users.
spk05: At the same time, the potential of our Jindong students to infiltrate Jindong users is very large. At present, the Internet platforms are actually cultivating the spirit of Jindong users on their own platform. So I think the direct competition between the two parties is still limited. Because Jindong users naturally have a clear need for shopping. They are e-commerce users, and they have higher requirements in terms of product quality and delivery speed. Secondly, we enjoy huge potential in penetrating more of JD's users. Currently, Internet companies are focusing on
spk09: cultivating the mindset for on-demand retail among their own user base, which means limited head-on competition among one another. And since JD East users are inherently purposeful shoppers who demand higher merchandise quality and delivery speed, we believe it's more efficient for us to convert them into on-demand retail consumers. And we remain confident in penetrating 50% of the JD user base in the long run.
spk05: In addition, on the basis of stable market growth, we actually pay great attention to the balance of growth and profit, and achieve long-term sustainable growth. By optimizing our supplementary strategy, increasing the efficiency of delivery, and increasing the ability of advertising transformation, we can achieve sustainable improvement And thirdly, on top of market share gains, we value sustainable growth by balancing growth and profitability through a combination of efforts in
spk09: optimizing subsidies, improving delivery efficiency, and increasing online marketing monetization, the profitability of JDDJ has improved significantly in the past few quarters to near break-even. In the long run, we also believe that JDDJ has higher profitability potential compared with other players because of our significantly higher AOV and online marketing monetization rate. Thank you.
spk04: 谢谢你的提问。 Thank you. 谢谢。 Your next question comes from Alicia. Yeah, who's this? Please go ahead.
spk02: Hi. In the first three weeks of October, there were some changes in the demand for supermarkets and electronic products. I would like to ask, after the double 11, what is the demand for supermarkets and non-supermarkets? 有没有一些明显的变化 这个是第一个问题 然后第二个问题呢 我想请问一下就是起手这边的成本 我们看到就是说这个季度其实是上涨了不少 是因为是某一些KA的一些商家的一些需求 Thanks for taking my questions. My first question is follow-up on management comment regarding the supermarket and the electronics category before the single-state, the first three weeks of October, and then single-state rebound. And so just wondering what is the demand trend post-single-state that you're expecting for supermarket and non-supermarket category? And the second question is on the cost of riders. So can I understand the increase in the cost of riders is related to this intra-city delivery? Is it anything related depending on the type of the chain merchants that you are servicing? And which specific order demand during these three queues that result in the higher rider cost? Do we expect a higher rider cost into four queues given it is a promotional season and potentially colder weather. Thank you.
spk00: Thank you, Alicia. So let me address your two questions. So for the first question, so it's just like the weekend. So we finished like the W11 campaign. So still there isn't, I don't think there's enough time for us to evaluate like the just three days daily sales to give you some color or comment for the post W11 campaigns trend. So, in terms of the second question, so about the rider cost, so in terms of the absolute dollar amount of the rider cost, yes, it's increased either on Q-on-Q level or year-over-year level because the overall business deal is growing robustly, especially our, I don't know, business is growing by 29%, within which our key accounts business is growing by 25%. we have discussed before. So this is just because the overall business is growing. In terms of like the unit cost as per like the order level or per GME level basically is efficient in the saved on a year-over-year basis. And in Q3, basically because usually it's like the summer season, so it takes more to recruit and retain riders compared to springtime or like the autumn season. So in Q4, we believe on a year-over-year basis, our per unit cost for the riders will decrease on a year-over-year basis.
spk04: Thank you, Ben. The next question comes from Lei Zhang with Bank of America.
spk08: Please go ahead.
spk07: Hi, Guanyin. Good morning. Thank you for accepting my question. My first question is that we have reduced the threshold of shipping to 59 yuan in the past few months. What impact has it had on us as a whole? My first question is, It's regarding the impact from our previous lower the threshold for free delivery to RMB 59 in Q3. And can you share more color on this? Second delay, notice that we have disclosed some live streaming related number during W11. And can you give us more thoughts on your movement regarding live streaming model? Thank you.
spk05: That's good. um um Thank you for your question.
spk09: Since the end of July, the delivery fee waiver campaign has covered basically all supermarket orders. And after that, we found that both conversion rates and repeat purchase rates increased, while AOV remained largely stable. in August compared with July, the overall conversion rate of our supermarket category improved by over 10% and the next month retention rate also increased by over 10% while the AOV was substantially unchanged.
spk05: Therefore, thanks to the initiative, the year-over-year growth of our DMV in the supermarket category accelerated in the third quarter of 2023 compared with the second quarter.
spk09: and the program will be a long-term initiative to improve user experience.
spk05: And in terms of the P&L impact, since the cost of delivery fee waiver is shared by us and our merchant partners,
spk09: The impact on the direct margin of JDDJ is in the dozens of tips and manageable for us.
spk05: In terms of live streaming, we have noticed that users are more and more interested in the form of live streaming. In the past, there have been a lot of companies and brands and launched official live broadcasts at various platforms. This is the first time that we have used a single source of energy to interact with users, and brought a cost-effective service to our users. It also has a certain initial effect. The number of viewers in some platforms is more than one million. During the 31st live broadcast, there were more than 10 GMVs sold during the year 618.
spk09: To answer your second question about live streaming, as we've taken note of the rising popularity of live streaming, during the Singles Day promotion that just ended, JDDJ launched multiple live streaming events together with merchants and brands in categories including supermarkets, consumer electronics, and home appliances. This was the first time that our frontline operational teams engaged with retailers, engaged with consumers to offer them value for money products deliverable within one hour. And we did see initial results with some sessions attracting total views exceeding one million. The total DMV transacted via live streaming grew more than tenfold versus the June 18 promotions.
spk05: We are still exploring the whole live broadcast project. This includes the optimization of the process and the better combination of live broadcast with AWS. It still requires a lot of product capabilities to be further relayed. In the future, our plan is to encourage more business owners on the platform to do a standardized store live broadcast to provide users with a more immersive small-scale shopping experience.
spk09: Overall, we are still in the exploration stage for the live streaming business. We plan to further optimize the process and enhance the product capability to better integrate LBS with live streaming. In the future, we are also going to encourage local merchants on our platform to host regular live streaming sessions so as to provide our users with more immersive on-demand shopping experience.
spk05: Thanks for your question.
spk08: The next question comes from Wei Zong with UBS. Please go ahead.
spk01: Good morning, Mr. Guan. Thank you for answering my question. First of all, I would like to ask that this quarter, our revenue increase is faster than before. My first question is that we see data now revenue growth is outgrowing our GDD data this quarter. Do we expect that trend to continue in the fourth quarter and next year? And also the revenue mix shift, how would that impact our margin outlook in the fourth quarter next year as well? And secondly, just housekeeping question, could management share their GMV mix and AOV trend in this quarter? Thank you.
spk00: Okay, so about the first question, so basically we expect still the two platforms will grow in similar speed in the following quarters or next year. So for the second question about GME mix, so the broader supermarket categories is still accounting for close to 50% of the GME amount, while the 3C electronics account for 40% of the total GME amount. And in terms of the average order value, so in Q3, the LV is like... This is the update for Q3. Thank you. Thank you.
spk08: We have come to the end of our Q&A session. I'll now hand it back to Ms. Caroline Dong for closing remarks.
spk10: Thank you, Operator. In closing, on behalf of the Data 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.
spk08: That concludes our conference for today. Thank you for participating. You may now disconnect.
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