"This year 618 is 50 times as much as six years ago, but it is still far from the point where electrical appliances have risen to the top." Yan xiaobing, vice President of jd.com and President of home appliances division of jd.com, said.

It is impossible to predict how the e-commerce industry will be able to meet the expected online and offline balance. Promulgated by the ministry of industry and the Chinese electrical appliances online analysis report 2016 shows that electrical appliances online penetration is close to the traditional business logic in a single channel formidable ceiling, but home appliance electricity is still nearly 35% growth in the sprint.

闫小兵 stressed: "the rapid advances electricity all the way home appliance, jingdong is doubtless growth quickly, '618' each year, jingdong home appliance sales will be on the explosive growth of a new step, and then continue to develop in a higher base, has six years in a row. The home appliance industry also showed a rapid growth trend in June, forming an interesting phenomenon of '618', shrinking in stark contrast with the traditional retailers."

How to interpret the "618 phenomenon" that has been on a step in June for six consecutive years? Yan xiaobing speaks for the internal source.

Efficiency determines channel ecology

Yan xiaobing believes that under the strong competition of jingdong, the appliance channel faces the ecological and environmental changes that "do not change". He said, the crux of the problem on the efficiency, the efficiency of electricity and traditional channels difference is more and more obvious, finally in the retail price, the manufacturer profitability level, represented by jingdong home appliance electric business advantage is obvious. "The shift in the distribution of home appliance sales is irreversible," says Mr Yan. "you can either change yourself or you will be eliminated."

Cost, efficiency difference between electricity and traditional retail is more and more obvious, in the retail price and the profit level, has had a huge difference, so the online selling below cost can be on the premise of guarantee the profits, even so manufacturers in the online channel can still make a profit, users, manufacturers and win-win become the source of the development of the electricity power. The company is also developing a "smart replenishing" system that will further improve efficiency and reduce operating costs.

闫小兵 pointed out: "the factory sold the goods money on jingdong, so in the case of offline channel growth is not ideal, jingdong appliance business still has a faster growth this year. Competition between channels, is the efficiency of the competition. At present, we compared with offline channels, there is a huge advantage on the fee."

Changed pricing model

Five years ago, flat-panel LCD TVS cost nearly 10,000 yuan, and now they can buy up to 55-inch flat-screen TVS in jd.com and about 3,000 yuan.

Yet the sharp fall in prices has not affected the profits of traditional TV makers. According to the enterprise, according to data from the annual report publicly by television as the main products of the two brands, hisense, skyworth in 2016 profit growth of 18.15% and 6.59% respectively, what makes enterprise price does not hurt the profits?

Yan xiaobing revealed that previous offline channel promotions, channel buttons and marketing costs accounted for about 40 percent of the product's price. But the lighter, more efficient Internet brands will only invest 10 per cent, which is more than half the price difference. The cost efficiency of the e-commerce channel is obvious and also one of the reasons for the low cost of the Internet brand.

Altered consumer behavior

As the age of the main consumer is shifting, there will be more and more space for online shopping in the future. At the same time, along with our country's information infrastructure, the mobile payment, the national logistics system has reached the world advanced level, online shopping experience is more and more "convenient", consumers are starting to make many high age choose online shopping. On May 30, according to the ministry of commerce issued the Chinese e-commerce report (2016), according to number of online users in China has reached 467 million, accounting for 63.8% of the proportion of the netizens, almost 4 into online transactions from China.