Close shuts down e-commerce operations in Thailand, Indonesia, focuses on supply chain infrastructure

January 31, 2023 6:23 am

Chinese e-commerce giant is shutting down its consumer e-commerce services in Indonesia and Thailand to focus instead on growing its cross-border supply chain business serving Southeast Asia.

According to announcements on Monday, will end its services in Thailand from March 3 and in Indonesia from the end of the same month. Both units will stop taking orders on Feburary 15.

In a separate statement, said it will continue to serve the global markets, including Southeast Asia, through its supply chain infrastructure. “We are developing in international markets by focusing on building a cross-border supply chain network with logistics and warehousing at the core,” the company wrote.

Currently, the company operates or manages warehouses or industrial parks in Vietnam, Malaysia and Indonesia.

In November, it was reported that was working to exit JD.ID, a joint venture formed in 2015 with Provident Capital, and JD Central, which was formed in 2017 with Bangkok-based conglomerate Central Group.

The Chinese giant has struggled to replicate its success story in Southeast Asia, where the market is highly competitive. It has so far invested more than 10 billion yuan to support the growth of the two joint ventures, but has still failed to compete with bigger players such as Alibaba Group's Lazada, Sea Ltd's Shopee and GoTo Group's Tokopedia.

The gloomy economic outlook forced Chinese tech companies to cut costs, and scale down non-core businesses. In late November, announced it would cut executive pay by as much as 20%, the first big pay cut revealed by a Chinese internet company since the pandemic began.