- Kristopher Fraser |
Reuters has reported that China's JD.com is in talks with Thailand's Central Group to launch a joint e-commerce venture in a total investment worth 500 million dollars.
If this venture goes through, it would help JD.com expand their overseas presence beyond Indonesia and to compete with rivals like Alibaba and Amazon who are ramping up their presence in Southeast Asia.
Indonesia accounts for most of JD.com's investments outside of China. The hope for entering Thailand is they will be able to use the market to service other countries like Vietnam and Malaysia.
Currently, the deal has yet to be finalized because the two parties haven't reached agreement over ownership.
Central Group is on a quest to dominate Thailand's e-commerce market, which is currently valued at 900 million dollars. With South Asia's overall e-commerce market expected to see robust growth over the next several years, they are hoping to continue to be major competition for their rival companies.
This deal would help put them over the edge and give Alibaba and Amazon a run for their money.