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Over the past two years, on-demand alcohol delivery has transformed from an innovative convenience into a mainstream retail channel in China, driven largely by platform giants Meituan and Ele.me. Today, industry estimates indicate that 60–70% of the country’s nearly 200 liquor retail chain brands have adopted instant retail services, aiming to capture shifting consumer expectations around speed and convenience.

While early adopters have seen notable gains—for example, Yishun Liquor, a Gansu-based chain, reported a 50.9% increase in overall sales after establishing dedicated e-commerce teams—many retailers are confronting difficult operational and financial realities. The promise of reaching younger, digitally-native consumers, including a growing share of female buyers, has come at the cost of razor-thin margins, high delivery overhead, and fierce price competition.

A key challenge lies in the fundamental mismatch between traditional liquor retail models and the logic of platform-driven commerce. Physical stores have historically relied on information asymmetry and high-margin relationships, while on-demand platforms thrive on price transparency, subsidies, and standardized offerings. Top-selling products online tend to be well-known brands with consistent pricing—such as Penfolds, Lafite, and private-label platform exclusives—often sold at minimal markup.

Small and medium-sized retailers particularly struggle to compete. Many lack the logistics infrastructure and economies of scale needed to profitably fulfill small, immediate orders. Others note that promotional requirements and commission fees erode already slim profits, making it difficult to cover fixed costs like rent and staff.

Still, the trend appears irreversible. Market size is projected to grow from nearly RMB 20 billion in 2023 to over RMB 100 billion by 2027. Chains that successfully integrate online and offline operations—balancing customer acquisition with sustainable pricing—are likely to emerge stronger. Yet for those unable to adapt, on-demand retail may prove to be a costly race to the bottom rather than a lifeline.