Multinationals race into China’s US$143.9 billion instant retail market

More foreign companies have rolled out instant delivery services exclusively for China or upgraded to more comprehensive offerings in the country, as they vie to stand out in the highly digitalised market and cater to consumers’ strong demand for instant services.Multinationals offering instant delivery now include Swedish furniture retailer Ikea, German tyre manufacturer Continental, US warehouse-style retailer Sam’s Club and German discount supermarket chain Aldi Nord.“China leads the world in internet penetration and boasts a well-developed digital infrastructure,” said Fu Yifu, a special researcher at Su Merchants Bank based in Nanjing, in China’s eastern Jiangsu province. “In China’s highly competitive market, providing instant retail services can help foreign brands to drive sales growth more effectively.”By combining their product strengths with local platforms to enhance the customer experience, foreign brands can “offset their limited local market insight” and better meet demand, Fu said.Ikea launched instant delivery services on Chinese e-commerce platform JD.com on January 23, covering nine cities including Beijing, Guangzhou and Shenzhen in Guangdong province, Hangzhou in eastern Zhejiang province and Chengdu in southwestern Sichuan province.The service currently covers small, daily-use home goods, with the fastest delivery within one hour for orders placed on JD.com.