Instant retail sector heating up

On-demand deliveries fitting in nicely with national plan to boost consumption

Competition in China's instant retail sector is heating up as major players are banking on the fast-growing food delivery modality to cater to consumers' rising demand for speedy and affordable on-demand delivery services, and to seek new sources of revenue, industry experts said.

They said that supply chain capabilities, fulfillment efficiency and service quality will be the key factors that determine the future landscape in the instant retail market, while platforms should ramp up technological innovation, optimize delivery networks and adopt differentiated strategies to further improve user experience.

Instant retail refers to a model where shoppers place orders via online trading platforms, after which retailers from brick-and-mortar stores execute door-to-door deliveries themselves or through third-party delivery platforms. The model is regarded as an important strategic battlefield for e-retailers, with on-demand deliveries usually requiring 30 to 60 minutes to be completed.