Recently, 'zero-yuan purchases' and 'one-cent flash sales' have frequently topped search trends, with one platform claiming daily orders exceeding 200 million, nearly 20% of which come from essential FMCG products like rice, flour, oil, beverages, and frozen foods. 'Zero-yuan cola' sold out within an hour of launch, and amid the subsidy frenzy, inventory cleared faster than during the 618 promotion.
In the past, instant retail was more of an 'icing on the cake' option for distributors—if they had the energy, they'd try it; if not, it wouldn't affect their main business.
But now, platforms are directly competing for terminal business, eroding the share of offline stores bit by bit. Distributors can no longer avoid it and must seriously consider: Can this business be touched? Is it too late to enter now? If we really do it, where are the difficulties?
To find answers, we visited three distributors deeply involved in instant retail:
Li Hua (pseudonym), started with beverages, serves lightning warehouses, and expanded from 200 SKUs to full-category supply;
Zhang Ming (pseudonym), specializes in low-temperature milk, supplies Xiaoxiang Supermarket, and wins the market with extreme fulfillment capabilities;
Lin Yi (pseudonym), deeply binds with Pupu Supermarket through in-depth operational services and ODM products.
These three distributor cases, with different categories, platforms, and strategies, may provide some reference for you.
Instant retail is not a business you can do just by having goods
'At the very beginning, the platform asked, 'Can you supply this product?' We said, 'Yes, we can.' And then we started.'
Li Hua (pseudonym) recalled his starting point in instant retail with such a light remark. But in reality, that 'yes' nearly caused his old team to collapse completely.
First, instant retail is a complex combined channel
Li Hua originally sold big single products like Red Bull and Nongfu Spring in traditional channels, using the 'have goods, lower price, move volume' model. He thought that as long as he could supply and the price was right, it would run. But after actually going online, he realized it was completely different.
The platform wanted him to supply one-stop, but he didn't have such a complete product range. Temporary replenishment either lacked inventory or couldn't be fully assembled, and early orders often failed.
What caught him off guard even more was the fulfillment pace. Orders came in at night and had to be delivered the next morning; sometimes the platform adjusted orders temporarily, requiring nighttime replenishment.
'Even though a store is only 200 square meters, its complexity combines the characteristics of several channels, and all are difficult points,' Li Hua said.
This business is like catering—orders placed at night must be delivered in the morning; operationally, it's very much like e-commerce—you need to know how to write titles, report activities, and adjust exposure; and the promotion mechanisms are similar to KA and convenience stores, such as second item half price, 0.1 yuan first order, etc.
On the surface, it's supplying a new channel, but in reality, it's like three channels bundled together, with complexity far beyond imagination. Many distributors underestimate this complexity and frequently step on pitfalls in the early stages.
Second, the 'speed' and 'stability' of fulfillment are harder than imagined
The product range issue can be slowly supplemented, but the difference in fulfillment pace is the real 'invisible threshold' that makes distributors anxious.
Zhang Ming (pseudonym) supplies low-temperature milk to front warehouses and felt the huge pressure of 'daily delivery' from day one. The platform's pace is extremely tight: order today, deliver today; order in the morning, deliver in the afternoon; adjust orders in the afternoon, replenish at night—there's almost no buffer.
'If you want to send more for backup, the platform doesn't allow it; if you want to save, then afternoon orders suddenly increase, and you have to adjust shipments temporarily,' Zhang Ming said.
Sometimes, the morning estimate is 300 orders, but by afternoon it becomes 400, requiring immediate additional allocation; any delay affects the rating.
Instant retail is not just 'fast'; it requires continuous, high-frequency speed, and it must be precise. The traditional channel pace of 'deliver once today, replenish every two or three days' simply can't keep up.
Third, without operational knowledge, even good products won't 'move'
Many distributors, when they first go online on platforms, still use traditional supply thinking: as long as the goods are delivered and the price is low, they wait for sales. But the fact is, if you don't understand platform rules, the goods simply won't 'move.'
Lin Yi (pseudonym) initially hung a 330ml mineral water on the platform for two weeks without a single order. Later, after asking around, he realized the title was the problem: users wouldn't search for '330ml' but for 'portable pack.' After changing the name and adding a 'family pack' combination, orders doubled directly.
Li Hua first realized the importance of operations when he tried to clear a batch of unsold Oriental Leaf tea. He signed up for a 'one-cent flash sale' activity, thinking it wouldn't sell, but it cleared 500 boxes in half an hour.
In traditional KA, an activity that boosts sales by 20% is considered good. But on instant retail platforms, if you don't report activities, adjust tags, or do product combinations, sales can differ by more than five times.
From product naming to activity reporting, from display logic to combination strategies, the platform has a whole set of rules that are key to sales. But this capability is completely unfamiliar to many traditional distributors.
What did those who succeeded do right?
Traditional distributors entering instant retail often fall into the 'busier but losing more' dilemma due to channel complexity, fulfillment pressure, and unfamiliar operations.
So, what did the distributors who succeeded do right? What are the key points? Through in-depth exchanges with several distributors, I've summarized the following points.
Product range: From 'can supply' to 'know how to supply,' first break through one point.
Traditional distributors supplying a brand to KA might need only 30 SKUs, but instant retail consumers have diverse needs and more choices; to expand search volume, you need more SKUs to support it.
Many distributors initially want to 'cover all categories,' but then they can't supply enough, orders aren't stable, and they lose their footing.
Li Hua's approach was to focus on one category first. He started with familiar beverages, matched the platform's sales rankings, and assembled 200 high-frequency SKUs to stabilize. After beverages ran smoothly, he spent two months adding alcoholic drinks, then half a year expanding into snacks and daily chemicals, eventually reaching 3,000 SKUs.
Fulfillment: Compete on 'high-frequency stability,' with labor efficiency as the key.
The channel characteristics of instant retail differ from traditional ones; it's about high-frequency small orders, and labor efficiency directly determines profitability.
Li Hua had urban distribution experience and initially managed sales and procurement well, but in summer, beverage demand surged, and sorting, warehousing, and delivery all went wrong. 'When summer orders exploded, picking errors increased, deliveries were delayed, and drivers occasionally took leave.'
During that period, he and his team were busy in the warehouse until 3 or 4 a.m. for several months; when short-handed, he did it himself; when there were no vehicles, he temporarily called Huolala, making several trips a day.
Later, when orders stabilized, he immediately adjusted: set up a night delivery mechanism, staggered scheduling; each vehicle was fixed to a group of stations, and drivers became familiar with routes. This gradually improved labor efficiency.
Zhang Ming's approach was more thorough: from day one, he defined the warehouse as a 'transit warehouse,' not for storage, only for short stays. The warehousing and distribution system runs 24/7 in two shifts, with people resting but vehicles not, so the platform can adjust orders anytime, and the warehouse can ship anytime.
Additionally, he redefined the driver's role: not just a delivery person, but the person responsible for the entire process from picking to delivery. Each driver serves a fixed customer, enabling targeted response and relationship building.
He told us this has three benefits: first, drivers pick their own goods, making delivery more efficient; second, fixed customers mean closer communication and higher customer satisfaction; third, drivers have a sense of belonging and are more willing to serve well.
Organization: Old teams can't handle new business; you must rebuild the system.
Many distributors initially think, 'Let's try with the existing team first.' But once they actually do it, they find that the pace, mindset, and execution logic of this business are completely different from traditional channels.
Li Hua told us that doing instant retail requires accepting night work, having a sense of fast-paced service, and knowing a bit about operations. This is almost unacceptable for salespeople accustomed to traditional business.
Lin Yi stepped on this pitfall in the early stages: he had salespeople and clerks from traditional business handle the work, but they couldn't keep up: slow responses to platform messages, inability to report activities, and messy data analysis. Within a few weeks, traffic dropped significantly, old business was disrupted, and many people resigned.
'The pace is completely different; mixing them together is even less efficient.' Later, he simply set up a new team, reconfiguring all positions from customer service to operations to data, without overlapping with the original team.
Mindset: Be able to bear early losses and have medium- to long-term goals.
Instant retail is not a business where 'you make money today after doing it today.' At the beginning, with wrong SKUs, unfamiliar activities, and unoptimized processes, it's common to be 'busier but losing more.'
Even the distributors who achieved results went through this stage.
When Zhang Ming first started supplying low-temperature milk, monthly sales were only 6,000 yuan, about 200 yuan a day, with frequent returns and basically no profit. But he felt it was 'worth the loss': unlike supplying to hypermarkets, where you might have millions tied up in inventory, the platform is only difficult at the start; as long as you optimize the structure, you can run.
Lin Yi has been in instant retail for 7 years and is one of the first distributors to enter. With no predecessors' experience to draw on, he had to figure everything out himself. 'At first, I only knew this thing could sell, but not how to sell it, so I had to try one by one and took many detours. But I'm not afraid of losing; as long as I can get the model running smoothly, there's definitely a future.'
When doing platform business, you can't focus on short-term gross profit. If you start with the traditional idea that 'every order must make money,' you might have to exit just after starting.
Is there still an opportunity to enter now?
Many distributors are asking: Is there still an opportunity to enter instant retail now?
Indeed, the distributors mentioned in this article found their strategies in the relatively early stages of the industry, when platforms were just ramping up. Now, platform rules have changed, competition is fiercer, and the entry barrier is rising. But after in-depth discussions with them, we found that although the path is harder, the window hasn't closed yet.
Despite instant retail being 'online ordering,' it's essentially a 'local business.'
This channel, which emphasizes 'instant and near-field,' competes on who understands consumers better, who delivers faster, and who serves more stably.
Local distributors are familiar with community business districts, grasp consumption rhythms, and have solid fulfillment capabilities—advantages that platform direct operations or cross-regional players find hard to replicate.
At the same time, platforms are still 'adjusting as they go.' Rules are changing, ecosystems are evolving, and nothing is set in stone.
For example, many distributors worry about 'disintermediation'—if platforms are all removing intermediaries, will I be cut off as soon as I enter?
Lin Yi doesn't see it that way. He believes that while many platforms do emphasize 'disintermediation,' it's more about removing inefficient links; platforms actually can't do without distributors who provide real service value.
Especially in local fulfillment, it still relies on people in the short term. Even with brand direct operations, distributors can leverage their understanding of regional markets, fulfillment capabilities, and relationship networks to find their own value.
He himself is an example.
Besides daily supply, Lin Yi also provides agency operation services for multiple brands, from product listing, activity reporting, and promotion design to data review and competitor analysis, following the entire process.
At the same time, he co-develops ODM products with platforms, deeply binding the partnership—this goes far beyond the role of a traditional distributor.
In his view, doing instant retail isn't about who lists first, but who can keep up with the pace and evolve with the platform.
So the question isn't just 'to do or not to do,' but also: Is this channel a flash in the pan or a long-term growth direction? If we really do it, how should we start? And who is it suitable for?
There are no standard answers to these questions, but the sooner you see the trend clearly and find your own entry point, the more likely you are to secure a position in the next round of adjustments.
For this reason, in August, at the 2025 7th China FMCG Conference in Shanghai, themed 'New Demand · New Supply,' we have specially set up a forum on 'Instant Retail Reconstructing the Offline FMCG Market,' inviting:
Liu Shaomin, General Manager of New Retail at Hengan Group; Ma Yong, O2O Sales Director of the Online Expansion Department at China Resources Snow Breweries' Sales Business Development Center; Huang Jianchao, Founder & CEO of Kuaikeda; Zhang Yu, former CEO of Wanshengtang Okamoto Business Unit; and Wang Xukun, Supply Chain Head of Jiangxiaotun, among many other speakers.
Focusing on instant retail market trends, platform cooperation strategies, supply chain efficiency optimization, and new channel growth paths, we will discuss how FMCG companies can embrace instant retail for breakthrough and win-win.
How can brand owners and distributors leverage local commerce flows and digital infrastructure to achieve counter-trend growth in the stock market? How can they efficiently integrate online and offline to seize new community consumption entry points?
From August 19-21, come to Shanghai, and let's find the answers together.
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