Recently, I've been discussing the development of instant retail flash purchase business with friends in the industry. After the discussions, a consensus emerged: the 'infrastructure' of instant retail is complete. The next phase must shift direction: from 'how to sell' to 'how to sell better.' It can even be said that the first half of instant retail is a battle over fulfillment infrastructure, and the second half is a battle over the supply-side system. From this perspective, if brands continue to focus mainly on marketing while leaving the supply side 'poor, chaotic, and uncontrollable,' they will eventually be marginalized on the limited shelves of instant retail.
From Marketing to Supply Side
Over the past five years, instant retail platforms have invested heavily in fulfillment and networks, achieving one thing for the entire industry: making consumers feel that 'when you want to buy something on a whim, using flash purchase is convenient.' From food delivery to emergency purchases to scenario-based restocking, instant retail has evolved from a 'novel experiment' to a 'natural option.' This means the key task of the first half—getting users to come and orders to run—is complete. Customer acquisition is no longer the core contradiction. The next question is not whether there are orders, but which products these orders are for. Instant retail has completed the first half of 'consumer education.'
At the same time, platforms have also spent time and energy on fulfillment delivery and warehouse expansion—'paving the way first.' They built flash warehouse networks, recruited franchisees, expanded outlets, and enhanced fulfillment capabilities, prioritizing the issue of 'whether there are warehouses and whether delivery is possible.' Now, warehouses are set up, but what goes into them? Who supplies the goods? How are they supplied? Previously, little attention was paid to these questions, with more reliance on 'the market solving it itself.' But a problem has emerged: as deliveries increase, the product assortment becomes more fragmented, increasingly affecting consumer experience. As consumer expectations become more stable, supply-side fluctuations will directly determine user experience and repurchase rates.
Of course, this is not caused by anyone intentionally, but rather an inevitable challenge in the birth and development of a new business model. 'From having or not, to more or less, to good or bad.'
From a brand perspective, the current supply structure of flash warehouses is very typical: Part of the goods come from online channels like PDD and 1688; part comes from spontaneous supply by local distributors; and part is self-purchased by flash warehouses from wholesale markets and other channels. This includes various 'unauthorized, cross-regional, price-disordered, private-label, and clearance goods.' For brands, this means multiple prices for the same brand, multiple packaging versions, and disorderly price competition between different warehouses and stores for the same product. Private-label and clearance goods also seriously affect consumer experience.
To summarize the four major characteristics of current supply problems:
- Multiple supply sources
- Price disorder
- Fragmented structure
- Inconsistent quality control
Therefore, in the next phase of instant retail flash purchase, the 'supply side' must be elevated to a strategic height.
Strategies for Brand Supply Optimization
Optimizing the supply side is by no means the effort of a single brand or platform; it requires a tripartite effort. For example, instant platforms should optimize: from being traffic platforms to becoming supply rule setters. Not to purchase all goods on behalf of others, but to establish an 'industry operating system' and build a clear authorization mechanism.
Also, warehouse store merchants should optimize: from disorderly purchasing to upgrading their role in managing the product assortment. Not just choosing whoever offers the lowest price, but considering comprehensive factors such as brand, gross margin, fulfillment stability, and after-sales risk.
Most importantly, upstream brands should optimize: from passive supply to active control. If they only do some traffic advertising without intervening in the supply distribution system, it won't work. When supply is uncontrollable, all marketing investments will be diluted.
Next, let's focus on specific strategies for brands in instant retail warehouse store supply:
- Product visualization
- Supply systematization
- Head benchmark establishment
Step 1: Establish Contact—First, Map Out the 'Supply Source Map'
First is to survey and understand the current situation: Which flash warehouse merchants are selling your products? Where do the goods come from? Offline distributors, 1688, or wholesale markets? What is the price system like? Which SKU is chaotic? Are the product items correct? Brands should use platform data interfaces, merchant visits, distributor feedback, and other means to draw a map of instant retail supply sources. Only by understanding 'who is selling for you' can you talk about control and optimization. Otherwise, all advertising, subsidies, and activities are 'blind fighting.'
Step 2: Establish a Controllable Framework of Head Direct Operation + Waist Authorization
With the instant retail map in hand, a clear and identifiable supply channel must be established. The core idea is to walk on two legs. For head flash warehouse systems, the most effective way is to adopt a direct operation or designated national service provider model:
Ensure unified supply sources, unified prices, and stable supply;
Synchronize new product launch rhythms and joint marketing actions.
For waist flash warehouse systems, the most effective way is to clarify the list of authorized designated distributors based on the location of the flash warehouse's 'headquarters procurement.' Generally, provincial capitals are the main focus. It must be ensured that:
There is an authorization list
A verifiable mechanism is established
Authorization is tied to prices
Authorization is tied to platform traffic
Distributors find 'following the rules more beneficial than not following them.'
Step 3: The More Warehouses and the More Fragmented, the More Brands Should Focus on the Head
Instant retail and current mainstream channels share a very similar pattern that many overlook: When the overall channel is fragmented, the 'demonstration effect of head systems' is further amplified.
Whether in instant retail or other channels, the product structure of head benchmark systems is often copied by other systems. Whatever products head warehouses put on, and whatever monthly sales they achieve, waist warehouses will quickly replicate the same products and activities. The product assortment in instant retail is highly replicable; the SKUs of head warehouses are the future assortment of waist warehouses. Therefore, even if there are 100,000 flash warehouses in the future, the direction of brand supply strategy is consistent: don't spread efforts evenly; focus on head systems and penetrate them thoroughly, letting them influence the remaining 60%. Allocate resources, new products, and activities to explore in head warehouses first. Lock onto the top 20-30% of head systems and key flash warehouses, and provide: stable supply, continuous operation, priority for new products, and priority for activities. Explore clearly and create benchmark cases. Once the head succeeds, other systems will naturally follow. Use head benchmarks to pull the market in reverse.
Final Thoughts
In the past, for FMCG brands, the key to operating instant retail was: Traffic, scenarios, activities, and subsidies. But now and in the future, the key to operating instant retail is: Supply, products, organization, and systems. Whoever establishes a 'controllable supply system' first will lead growth in the second half of instant retail.