A notice on the JD.com website in Thailand says it will stop taking orders on February 15 and end its services there on March 3. Its partner in Thailand (JD Central) has said it will offer after-sales services till the end of March.
Meanwhile, its outlet in Indonesia will cease operations at end of March, its websites said. Both units will stop taking orders on February 15.
A spokesperson for JD.com said in a statement the company will continue to serve global markets, including Southeast Asia, through its supply chain infrastructure.
Thai platform not profitable
The company did not provide a reason for the closures. But a news report in Thailand said the Thai platform suffered a net loss of 1.9 billion baht ($58 million) in 2021 with the loss expanding 40% from the previous year.
Wisan Sirikul, corporate marketing director of JD Central in Bangkok, said the shutdown decision was made by shareholders of the two parties. China’s JD.com wanted to focus on its supply chain and cross-border business, he said, according to a report in the Bangkok Post.
About 500 employees would be laid off and receive 100% provident fund compensation, he was quoted as saying.
The Thai platform’s operator, Central JD Commerce, reported 7.4 billion baht in total revenue in 2021, up 113% from the year before, according to Department of Business Development data, but its losses had increased, the report noted.
In Indonesia, the firm started its e-commerce operation under the name JD.ID in 2015, while in Thailand it was formed in 2017 as a joint venture between China’s JD.com and Thailand’s largest retailer Central Group.
Further details about JD’s operations in Indonesia are not known yet.
- Reuters with additional editing by Jim Pollard
NOTE: Further details were added to this report on January 30, 2023.