After a difficult year for China’s retail and technology industries, JD.com will discontinue its e-commerce operations in Indonesia and Thailand.
Local websites were displayed JD.com will cease operations in Thailand on March 3 and in Indonesia on the last day of the same month. The two units will cease accepting orders on February 15.
JD.com’s supply chain infrastructure will continue to serve worldwide markets, including Southeast Asia, according to a statement released by the business on Monday.
The business, which did not provide a rationale for the shutdown, debuted its e-commerce operation in Indonesia under the name JD.ID as a joint venture with Provident Capital in 2015, while the Thai site was established two years later with the kingdom’s largest retailer, Central Group.
In contrast to larger competitors such as Alibaba Group’s Lazada, Sea Ltd’s Shopee, and GoTo Group’s Tokopedia, JD.com was unable to acquire traction.
The company, which also operates the omni-channel retail brand Ochama in Europe, reported in November that “new companies” – comprising overseas operations and other initiatives such as JD property – contributed barely 2% of total sales during the third quarter.
In China, the firm, like many of its internet competitors such as Alibaba, has been facing a sluggish economy and the repercussions of stringent restrictions, which have led to cost reductions and layoffs.
While JD.com has outperformed its competitors by showing a 11.4% increase in sales for the third quarter, its CEO has termed the second quarter as the most challenging since the company went public in 2014.