DFI Retail Group and Dingdong Announce Strategic Partnership With first-year sales target of HKD100 million

The Sun

07-05-2025

HONG KONG SAR - Media OutReach Newswire - 7 May 2025 - DFI Retail Group (DFI or the Group), and Dingdong (Cayman) Limited (Dingdong or DDL), a leading fresh food e-commerce platform in the mainland, recently announced their partnership to their supply chains and retail networks. Together, they aim to build a digitalised cross-border supply chain system. Through DFI's Wellcome supermarkets, they will provide Hong Kong customers a diverse selection of quality products at competitive price, targeting sales of HKD 100 million in the first year of its launch. The first phase began on 9 April 2025, six selected Dingdong vegetables have already been made available in nearly 280 Wellcome stores, as well as Wellcome's Online Shop (www.wellcome.com.hk) and food delivery platform foodpanda. The sales will gradually be expanded to other upscale supermarket brands, such as Market Place and 3hreesixty.
Enhancing Cross-Border Supply Chain. Faster and Fresher Food from Mainland to Hong Kong
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. This partnership aims to streamline the supply of fresh produce 'from farm to table.'
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 reduce / 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.
Curtis Liu, 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.'
DDL expands across Hong Kong with various vegetables available in nearly 280 Wellcome stores
The initial six types of vegetables available this time – Chinese Lettuce, Indian Lettuce, Choy Sum, Baby Bok Choy, Chaozhou Mustard Greens, and Spring Greens – are all selected from DDL's direct supply bases in mainland. The products meet both mainland and Hong Kong safety standards, ensuring quality and safety control at every stage from farm to shelf. The fresh vegetables are pre-cooled and freshness-locked within 2 hours after harvesting and transported in temperature-controlled trucks. Before arriving at the stores, they undergo a second manual sorting process, with strict control over quality and weight to ensure the freshness of shelf products. Within a month of launch, total sales exceeded 100,000 kilograms.
These selected vegetables are available in nearly 280 Wellcome stores and on Wellcome's Online Shop and foodpanda. 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 give Hong Kong customers to enjoy a taste of seasonal specialties like Hubei Hongshan Cabbage in winter, Yunnan wild mushrooms and purple lettuce in spring, and Shandong cucumbers and Yunnan corn in summer. Notably, Yunnan's edible Banlangen and Red Little Spinach will be available in Hong Kong for the first time, meeting customers' diverse tastes and nutritional needs. 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.
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