JD.com and Central Group set $500 million to Thai market

JD.com, Central Group and Provident Capital set aside US$500 million to enter the Thai market. China's e-Commerce giant and Thai retail company will set up a joint venture to operate in Thailand. Each agreed to invest US$250 million to build e-commerce and fintech services.

Tinuku JD.com and Central Group set $500 million to Thai market

Central Group will invest US$250 million, while the rest will come from JD.com, JD Finance and Provident Capital which is also JD.com's strategic partner for e-commerce business in Indonesia. Central Group will open several flagship stores on the e-commerce platform for major department stores and retail networks for selected brands operated by Central Group.

This collaboration will help JD.com expand business outside Indonesia to compete with Alibaba Group and Amazon in Southeast Asia. JD.com founder and CEO Richard Liu said the partnership will strengthen the company in developing its business where Central Group is the largest retailer in Thailand.

"Working with Thailand's strongest conglomerate, with a shopping center and a chain of department stores, gives us a competitive edge as we expand Southeast Asia," JD.com Founder and CEO Richard Liu said Monday.

JD.com will provide logistical and technological support into this joint business, while Central Group will contribute in dealing with merchants, brand recognition, and consumer insights gathered through the loyalty program.

Central Group said the partnership is a move to widen the business as people's shopping styles begin to shift to online shopping. This lifestyle change should be anticipated to become the largest online retail company based in Thailand.

"This move marks a key step in the Central Group's goal of becoming Thailand's online retail leader," said Central Group CEO Tos Chirathivat.