Hong Kong supermarket operator and e-commerce platform join supply chains
DFI Retail Group and Dingdong (DDL) – a leading fresh food e-commerce platform in China – have announced a new partnership set to enhance the supply chains and retails networks of both companies.
Together, they aim to build a digitalised cross-border supply chain system connecting DFI’s Wellcome supermarkets in Hong Kong with Dingdong’s operations in Mainland China.
This is set to provide Wellcome customers in Hong Kong with a diverse selection of quality products at competitive price, with the retailer targeting sales of HKD100mn in the first year following the launch of the partnership.
The first phase began on 9 April 2025, with six selected Dingdong vegetables made available in nearly 280 Wellcome stores, as well as Wellcome’s Online Shop and food delivery platform foodpanda. The sales will gradually be expanded to other upscale supermarket brands, such as Market Place and 3hreesixty.
Hong Kong’s fresh food market has long relied on imports, often facing price fluctuations of over 50 per cent 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.”
In the first month since the partnership was launched total sales of the intial six vegetable products exceeded 100 tonnes.
The companies intend to expand the range to include more vegetable products at first and then 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 omnichannel 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.
