(CTN NEWS) – BEIJING – On January 10, 2023, employees inspect shipments during a scheduled media tour at JD.com Logistics Asia No. 1 logistics facility in Beijing.
After suffering setbacks from local competition, JD.com is discontinuing its local platforms in Thailand and Indonesia to better concentrate on its supply chain and logistical expertise.
In a big blow to its aspirations to expand internationally, the Chinese e-commerce behemoth JD.com has decided to shut down its platforms in Thailand and Indonesia.
The decision comes as the nation’s Big Tech companies cut expenditures in response to the slowing development of the domestic internet industry.
The notifications were published on Monday to the websites of the joint ventures of the Beijing-based corporation in the respective nations, JD Central in Thailand and JD.ID in Indonesia.
JD.ID and JD. Central will stop working on March 31 and March 3, respectively. On February 15, both websites will stop taking orders.
After years of success in Southeast Asia, the statements support a South China Morning Post claim that JD was considering methods to leave the regions to emphasize domestic growth.
According to a business spokesman, JD intends to change its focus from managing its regional e-commerce platforms to creating “a cross-border supply chain network including logistics and warehousing”.
To serve regional worldwide consumers, including those in Southeast Asia.
To provide supply chain solutions globally, JD stated in a statement, “We will continue to direct our resources on developing cross-border supply chain infrastructure and collaborate with both local and global partners.”
The business did not mention the arrangements for its staff in the regional branches.
JD.com did not immediately answer requests for comments on Monday.ID or JD Central.
To enter the then-exploding Indonesian e-commerce market, the Chinese internet giant founded JD.ID in 2015 through a partnership with local investors, notably Provident Capital.
In partnership with Thai property and shopping mall developer Central Group, the company introduced JD Central two years later.
According to a report from Google, the Singaporean sovereign fund Temasek, and the international consulting firm Bain and Company.
E-commerce has become one of the biggest growth drivers in the region’s digital economy over the past few years.
The growth potential attracted a flood of new firms, fueling fierce competition in the market.
Making it difficult for JD to establish itself in a profitable market. Alibaba owns the Post.
According to information provided by the e-commerce market intelligence agency iPrice, JD.ID and JD Central both fell behind significant rivals in their respective markets.
JD.ID placed tenth in Indonesia during the second quarter of 2022 despite the market being dominated by Tokopedia and Shopee, two local behemoths.
Through its JD Logistics business, JD has already increased its investments in supply chain solutions for local clients in other markets, such as Malaysia and Poland.
The biggest discount grocery chain in Poland, Biedronka, and JD Logistics, partnered last year to increase the retailer’s online presence by using its warehouse and delivery capabilities to fill e-commerce orders.
The business has also been working on two industrial parks in Vietnam, where it would offer warehousing and logistics services.
RELATED CTN NEWS: