Core Insights - Liu Qiangdong, during a tasting event, stated that retailers do not hold as much value in the industry as brand manufacturers, suggesting that selling premium products like Moutai does not yield higher profits than the brand itself [1] - In 2006, when the company decided to enter the large appliance market, investors were skeptical due to Amazon's dominance in the U.S. market, but Liu identified a high gross margin of 17%-18% for retailers compared to low net profits for appliance manufacturers [1] - Liu emphasized that if retailers are making more money than brand manufacturers, it indicates potential issues within the industry, using the example of selling Moutai liquor being more profitable than Moutai Group itself [1] - By 2016, after entering the home appliance sector in 2009, the company became the largest home appliance retailer in China, demonstrating significant growth in this segment [1]

Core Insights - Liu Qiangdong stated that retailers do not hold as much value in the industry as brand manufacturers, suggesting that selling premium products like Moutai does not yield higher profits than the brand itself [1] Group 1: Retail Industry Insights - In 2006, Liu Qiangdong faced opposition from investors when deciding to sell large appliances online, as they believed that Amazon's strength in the U.S. would hinder success in this area [1] - Liu Qiangdong discovered that the gross margin for appliance retailers was as high as 17%-18%, while the net profit for appliance manufacturers like Midea, Gree, and Haier was significantly lower, at just over 1% [1] - The net profit for retailers can reach up to 6%, indicating a more lucrative position compared to brand manufacturers in the appliance sector [1] Group 2: Company Growth - By 2009, JD.com entered the home appliance market and became the largest appliance retailer in China by 2016, achieving this status in just six years [1]