DFI Retail Group and Dingdong join hands to enhance cross-border supply chain

DFI Retail Group has partnered with Dingdong (DDL), a fresh food eCommerce platform in the mainland, to build a digitalised cross-border supply chain system.

This innovative system, powered by artificial intelligence (AI) and blockchain traceability, aims to revolutionise the fresh food distribution process between the mainland and Hong Kong, ensuring greater efficiency, transparency, and product quality.

Through DFI's Wellcome supermarkets, the partnership aims to provide Hong Kong customers a diverse selection of quality products at competitive prices, targeting sales of HK$100 million in the first year of its launch.

This comes with the fact that Hong Kong's fresh food market has long relied on imports, often facing price fluctuations of over 50% for leafy vegetables due to unstable weather. This collaboration allows DFI to leverage Wellcome's network of nearly 280 stores across Hong Kong while DDL utilises its nationwide sourcing and efficient transportation methods, which aims to streamline the supply of fresh produce "from farm to table".

The first phase began on 9 April, when six selected Dingdong vegetables have already been made available in nearly 280 Wellcome stores, as well as Wellcome's online shop and food delivery platform foodpanda, all sourced directly from DDL's mainland supply bases to ensure quality and freshness. Within just one month, sales exceeded 100,000 kilograms, with plans underway to expand availability to upscale supermarkets including Market Place and 3hreesixty to meet growing consumer demand.

As part of the collaboration, the two parties plan to jointly build a digitalised cross-border supply chain and integrate their data. An AI prediction system will dynamically help adjust the inventory across DFI's supermarkets to minimise out-of-stock rates. For example, the system can anticipate fluctuations in demand for leafy vegetables based on weather changes and holidays in Hong Kong, ensuring accurate supply. This digitalised supply chain, from upstream planting to downstream retail, improves the efficiency of the fresh food supply chain.

In addition, to ensure quality, DFI and DDL plan to adopt "one product, one code" traceability technology for vegetables supplied to Hong Kong. Customers can scan a code after purchasing DDL products at DFI's supermarkets to access planting records, inspection reports, and transportation routes, achieving full transparency.

Looking ahead, the partnership plans to add regular categories such as bitter melon, okra, and green beans in 2025, along with vegetables popular on Chinese social media platforms and other regional specialties. This will allow Hong Kong customers to enjoy special taste of seasonal specialties.

Additionally, fruits, as well as soy products, ready-to-eat meals, snacks, and alcoholic beverages will be introduced, with over 150 products expected by the end of the year.

These products will cover all 18 districts of Hong Kong through Wellcome stores, Wellcome Online Shop, and foodpanda, achieving omni-channel availability and allowing customers to enjoy seasonal fresh vegetables from across the country. The two parties will actively explore expanding the cooperation to DFI's supermarkets in Macao and Cambodia, benefiting more customers in these regions.

Curtis Liu (pictured left), chief executive officer, food, at DFI Retail Group, said, "This partnership with DDL is to fully leverage the core strengths of both parties to jointly build an efficient digitalised cross-border supply chain. It enhances the quality and cost-effectiveness of fresh produce for our customers, creating a win-win situation. We believe this innovative model will significantly improve supply chain efficiency, ensuring that every customer can enjoy fresh, high-quality products."

Yang Shaoming, vice president of DDL, said, "This collaboration integrates DDL's supply chain capabilities with Hong Kong's retail network. We will utilise our direct sourcing and digitalised supply chain to efficiently deliver high quality, safe fresh food to Hong Kong, enriching local shopping options, and making choices more affordable."

MARKETING-INTERACTIVE has reached out to DFI for more information.

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