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China’s JD will close its e-commerce services in Indonesia and Thailand after a bruising year for the Chinese business environment.
JD did not give a reason for the closures.
The company will end its services in Thailand on March 3 and in Indonesia from the end of the same month. Both units will stop taking orders on February 15.
A JD spokesperson said that the company will continue to serve global markets, including Southeast Asia, through its supply chain infrastructure.
JD started its e-commerce operation in Indonesia in 2015 as a joint venture with Provident Capital, while the Thai platform was launched in 2017 with the Central Group, Thailand’s largest retailer.
The company, which also operates the omnichannel retail brand Ochama in Europe and has other ventures such as JD property, failed to gain traction against larger players such as Alibaba Group’s Lazada, Sea Ltd’s Shopee, and GoTo Group’s Tokopedia.
In contrast to bigger competitors like Lazada by Alibaba Group, Shopee by Sea Ltd, and Tokopedia by GoTo Group, JD was unable to gain traction.
JD's exits, according to Nattabhorn Buamahakul, a partner at Asia Group Advisors located in Bangkok, were a result of the region's fierce competition in e-commerce, particularly in Thailand.
