(Yicai Global) June 19 -- The legendary chairwoman of Gree Electric Appliances has in recent months taken to the internet with aplomb, shifting record amounts of stock with her powerful sales pitch and leaving agents for China’s biggest air conditioner maker fretting about their future.

Dong Mingzhu flogged CNY10.3 billion (USD1.5 billion) worth of white goods on June 18, China’s mid-year e-commerce promotion day, a new best for her since she began live-streaming sales in April.

In four other live streaming appearances on social media platforms between April 24 and June 1, Dong’s smooth talking saw turnover quickly escalate from CNY225,000 (USD31,786) the first time to CNY310 million (USD43.8 million), CNY700 million and then CNY6.54 billion (USD924.3 million).

It’s not just her personal charm that is seducing buyers. Dong is also offering much lower prices than are available in brick-and-mortar outlets, upsetting the Zhuhai, Guangdong province-based firm’s dealers.

Gree traditionally relies on a huge sales network. Agents would bulk-buy products from its local sales unit and then resell them to dealers and retailers. In normal times, this gave them a decent profit margin.

But now Dong’s online offers are undercutting them significantly. An air conditioner available for CNY1,999 (USD282) online, costs an agent CNY2,200 to buy. Given the difference in price, one such agent in eastern China has had to return the goods bought, he told Yicai Global. Many distributors he used to supply are now buying directly from Gree’s live studio.

If she continues to do live-streaming sales, it will definitely detract from offline takings, a Gree retailer in southern China told Yicai Global.

"The trend of shifting from physical stores to online channels will exist for some time to come," said Zhao Meimei, general manager of market research firm All View Cloud's white goods division. In view of this, Gree's dealers should improve their efficiency and diversify their sales channels to cope with the challenges, she added.

Editors: Tang Shihua, Kim Taylor