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On September 16th, Liu Qiangdong stated at a JD.com wine tasting event that retailers' value to the industry is not as great as that of brand merchants. He said that retailers selling Maotai cannot make more money than Maotai Group itself. Liu Qiangdong mentioned that in 2006, when he decided to start selling large home appliances online, all his investors opposed the idea. "They said that even Amazon, which is so strong in the United States, does not sell large home appliances online." However, Liu Qiangdong insisted, saying that he found out that the gross profit margin for selling home appliances was as high as 17%-18%, while home appliance suppliers, brand merchants including Midea, Gree, Haier, etc., had very low net profits. "The net profit of the home appliance industry is just a little over one point, but retailers' net profit can go up to six points." Liu Qiangdong emphasized, "I have always believed that the value of retailers to the industry is actually greater than that of brand merchants, and I found that in this industry, retailers can earn more money than brand merchants, just like one day selling Maotai wine can earn more money than Maotai Group, then there will definitely be serious problems in that industry." "In 2009, JD.com entered the home appliance industry and after 16 years, it took a full six years for JD Group to become the largest home appliance business in the country," Liu Qiangdong said. (Sina Technology)