Dingdong (Cayman) Stock

Dingdong (Cayman) Limited operates as a fresh grocery e-commerce company in China.

The company directly provides users and households with fresh groceries, prepared food and other food products through delivering a convenient and excellent shopping experience supported by an extensive self-operated frontline fulfillment grid.

In 2022, over 9,000 SKUs of fresh groceries were available on Dingdong Fresh. In 2022, over 13,000 SKUs of prepared food and other food products were available on the company’s Dingdong Fresh.

Products

The company offers a wide range of products, including fresh groceries, prepared food, and other food products. The number of SKUs available on Dingdong Fresh reached over 24,000 in 2022. The company entered the industry with fresh groceries, including vegetables, meat and eggs, fruits, and seafood, as its initial focal point, a segment known for high-frequency orders and relatively difficult procurement and fulfillment operations. Users, initially attracted to Dingdong Fresh because of the fresh groceries the company offers, usually expand to other categories, such as prepared food.

Prepared food refers to food that is washed, sliced, peeled, mixed or processed, and later packaged and preserved in different ways which are ready for consumption or can be consumed by customers by simple cooking. Dependent upon the degree of processing and ease of consumption, prepared food can be further categorized into ready-to-eat food, ready-to-heat food, ready-to-cook food, and ready-to-mix food. The fast-paced lifestyles of younger generation and growing preference for healthier and higher quality products have significantly boosted the popularity of prepared food which saves time, requires fewer efforts for cooking and is easy to handle and store. To tap into the new consumer trends among young families, over 4,000 SKUs of prepared food were available on Dingdong Fresh in 2022. Leveraging the company’s superior supply chain management capabilities, advanced cold-chain logistics capabilities, and stringent quality control measures, the company was able to incubate and source a variety of more innovative, fresher and healthier prepared food.

The company also offers baked goods, dairy, seasonings, beverage, instant food, oil, and snacks, aiming to provide its users with a wide range of options to choose from.

Food Innovation

The company places significant emphasis on food innovation. In order to meet the increasing customer needs for diverse quality products for various dining scenarios, and leveraging its strong product development capabilities, the company has successfully launched a series of private label products, particularly focusing on prepared food, rice and noodles, fresh groceries, and baked goods.

As of December 31, 2022, the company had successfully launched a total of more than 20 private labels covering around 2,200 SKUs. Some of the company’s signature private labels include Dingdong Damanguan Hotpot, Boxing Crayfish, Cai Chang Qing, Bao’s Bakery, Good Craftsman Noodles, and You Dou Zhi.

Seasonality

The company has experienced seasonal fluctuations in customer purchases in its business. For example, the company typically experience higher user traffic and more purchase orders during the summer as families tend to cook more often for children at home during their school break in summer, and lower user traffic during the Chinese New Year, as some of the company’s users would return to their hometowns where its services not cover.

Marketing

In addition to continuing marketing activities through traditional online and offline channels, the company has also designed innovative programs and promotion activities to further enhance the brand awareness of both the company and its partners and to better reach its customers.

Intellectual Property

As of December 31, 2022, the company had 17 registered patents, 28 pending patent registration applications, 311 registered trademarks, 62 pending trademark registration applications, registered copyrights to 22 pieces of artistic work and 24 pieces of software, and 21 domain names.

History

Dingdong (Cayman) Limited was founded in 2017. The company was incorporated in the Cayman Islands in 2018.