The retail industry is undergoing a seismic shift, characterized by a burgeoning emphasis on omnichannel strategies that cater to evolving consumer expectationsWalmart, a titan in the retail landscape, is at the forefront of this transformation in China, recently forming a strategic partnership with Meituan, a prominent local service platformThis collaboration signals Walmart's commitment to enhancing its omnichannel approach, while also unveiling deeper implications for the retail sector as a whole.

As traditional retail grapples with comprehensive changes across the supply chain and customer touchpoints, businesses are increasingly recognizing the critical importance of cultivating a consumer-centric relationship between suppliers and customersThe industry is also feeling the urgency to introduce higher-quality supplies and break free from the prevalent cycle of “involution,” where competition is primarily about gaining market share from existing customers rather than expanding the market.

With industry giants like Walmart doubling down on immediate retail options, it appears that this model may soon become a significant avenue for upgrading brick-and-mortar retail beyond mere adjustments to conventional operations.

Immediate retail has emerged as a crucial growth driver for physical stores, particularly as we approach 2024—a year poised to encapsulate transformation as a key theme within the retail sphere

This evolution is not limited to Walmart; numerous well-established chain retailers with robust offline infrastructures are increasingly gravitating towards immediate retail models, yielding encouraging early results.

For instance, Yonghui Supermarket, in response to the pressing need for transformation, launched "genuine discount stores" last October, integrating community group buying with immediate retail to meet consumer demands for both speedy delivery and diverse offeringsThis initiative has already led to the supermarket joining multiple immediate retail platforms, opening doors to significant growth.

Similarly, traditional supermarket chains like Beehive Lotus have felt the weight of transformation pressuresThey have initiated trials of immediate retail "flash warehouses" in Guangdong, effectively shifting from a “wait for customers to enter the store” model to a “delivery to your door” service with promising results

Numerous flash warehouses have reportedly reached profitability, showing that the pivot towards immediate retail can yield significant rewards.

The phenomenon of immediate retail isn’t merely confined to proactive chain retailers; traditional retail operators are also discovering new channels to tap into this growing market.

Xu Zuping, the owner of Anji Convenient Store, exemplifies this trendWith over three decades of retail experience, the seasoned entrepreneur identified the immediate retail surge last DecemberSince then, he has established ten flash warehouses throughout Zhejiang, and within less than a year, his Anji store has skyrocketed to the top four in salesXu reports that during peak seasons, daily orders can reach 9,000, with food delivery accounting for two-thirds of revenue.

Alongside Xu, we find emergent players like Zhang Wei, a younger entrepreneur who opened flash warehouses in his hometown of Helan County, Ningxia

Having previously worked in Xi'an as an intermediary for small and mid-sized convenience stores, Zhang capitalized on the burgeoning immediate retail market and founded his brand, Lin Tun Convenience StoreCurrently, approximately one-third of Lin Tun's shops are successfully operating across various counties, with the Helan store averaging more than 5,000 orders monthly.

Zhang forecasts at least a 20% annual growth potential in the convenience store immediate retail arena within these smaller towns, showcasing the significant opportunities that lie ahead.

The key appeal of immediate retail lies in its ability to help both large chain supermarkets and traditional retail operators seize new opportunities arising from the local “mismatch” of supply and demandHistorically, physical retail—especially supermarkets and convenience stores—has leaned towards dependency on supply-side resources, often responding slowly and inadequately to consumer needs.

With the rise of instantaneous consumption requirements, the existing local supply has often fallen short, creating temporary gaps—gaps that agile local retailers are quick to exploit

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In addition to chain retailors exploring immediate retail innovations, traditional retail workers are also observing shifts in local consumer demand and responding appropriately.

Zhang Wei illustrates this well with his flash warehouse strategically situated in a residential area, boasting approximately 3,000 different itemsBy tailoring inventory to meet the immediate demands of nearby residents, he creates differentiation from typical supermarkets, meticulously categorizing items by scenarios such as travel, pet care, emergency essentials, beauty products, and teatime treatsThis innovative approach allows him to maximize his limited space while addressing urgent consumer needs.

Xu Zuping's efficient preparation logic mirrors Zhang'sGiven that Anji is a tourism-heavy county, items like disposable bed covers, bathtub liners, water guns, and waterproof phone cases fly off the shelves

This tailored inventory strategy ensures that even a modestly sized store can thrive.

Both entrepreneurs have embraced a flexible model that allows them to transition from being purely reactive retailers to more proactive, dynamic businesses that bridge local “supply-demand mismatches” effectively, discovering untapped revenue streams in the process.

Looking ahead, the interplay between traditional and immediate retail continues to intensifyOuyang Rihui, Deputy Director of the China Internet Economy Research Institute, emphasizes that the relationship between physical retail and new formats like immediate retail is beneficial and symbiotic, fostering a virtuous cycle of growth.

This cyclical relationship is expected to deepen furtherAs businesses discover additional revenue streams through immediate retail frameworks, they inevitably attract more physical retail players to the market

This influx will lead to richer offerings and the stimulation of various new consumer demands, fundamentally changing shopping habitsA manager at a Miniso store recently noted this transformation in consumer behavior, observing that customers are increasingly purchasing multiple everyday items alongside essentials, reflecting a shift in how they shop.

In light of these developments, the Ministry of Commerce and other authorities recently introduced the “Retail Innovation and Improvement Plan,” which aims to support the collaborative evolution of in-store and home delivery servicesThis initiative seeks to champion the integration of online and offline immediate retail strategies and to explore innovative new models conducive to overcoming existing operational imbalances, quality deficiencies, and rampant competition within the industry.

However, the advent of this two-way beneficial cycle does not guarantee that entering the immediate retail space is a straightforward path for physical retailers

The current wave of prominent players stepping into this sector is largely composed of experienced and established retail giantsAs they solidify their position in this niche, the immediate retail supply landscape will inevitably undergo a process of refinement and specialization that prompts industry fragmentation: those with professional capabilities are likely to thrive, while less equipped entrants may gradually withdraw from the market.

Indeed, succeeding in immediate retail—a business model heavily reliant on local knowledge—requires profound understanding and insight into local markets and consumer preferences, necessitating heightened professional competence among industry players.

For instance, Xu Zuping made a strategic decision to position his flash warehouse in a relatively quieter part of the central city, rather than in bustling commercial districts

Although foot traffic isn't as high, the location offers convenient access for deliveries—a key advantage for a business model focused on rapid delivery that relies on online ordersSuch decisiveness stems from Xu's nearly 30 years of industry experience, emphasizing that successful operations encompass much more than just choosing a prime location.

This holistic view encompasses critical operational elements such as product selection, inventory richness, pricing strategies, targeted marketing approaches, and customer service attitudes—all of which demand a nuanced understanding of the retail landscape.

For the imminent future of the immediate retail market, expert practitioners who possess heightened professional skills are likely to find themselves at a significant advantageWith the rapid growth of this marketplace—expected to reach a staggering 6.5 trillion yuan by 2023, an uptick of nearly 29% from previous estimates—the potential for further expansion into third and fourth-tier cities is tremendous.

As the market landscape continues to evolve with heightened competition, diverse product categories, and distinct regional characteristics, prospective entrants should prioritize professional development or seek collaborations with seasoned experts to navigate the complexities of the immediate retail industry effectively.