Chinese e-commerce company JD.com Inc. has inked a deal with the Thailand-based retailer Central Group for a US $ 500 million (US $ 250 million each) joint venture.
“JD’s proven track record of successfully building out national online retail businesses made it the obvious choice to be our e-commerce partner,” reportedly said Tos Chirathivat, Chief Executive Officer of Central Group.
As per the agreement, the e-commerce giant will provide technology and logistics support to the JV, while Central Group will contribute through its merchant relationships, brand recognition, and customer insights.
JD.com aims to expand its reach in the Southeast Asia region through this e-commerce and financial technology (finetech) venture.
The retailer’s arch-rival Alibaba Group has already reached the Southeast Asian market and is quickly increasing its services in countries like Singapore. It is expected the JV will back JD.com in taking its business beyond Indonesia.
“Working with Thailand’s strongest retail conglomerate, with a massive shopping mall and department store network, gives us a huge competitive advantage as we expand further into Southeast Asia,” JD.com CEO Richard Liu said in a statement.
The partnership between the two is expected to reshape the online retailing and finance landscape in Thailand.
