Central Group collaborates with JD.com to invest 17.5 billion baht, shaking up the global retail industry

Developing a comprehensive digital ecosystem for the first time under the name 'JD Central'  

Transforming online shopping in Thailand into a hub for Southeast Asia

  Central Group, Thailand's leading retail business, has announced a significant joint venture with JD.com, a giant in retail and e-commerce from China and the world's third-largest e-commerce leader. This partnership aims to create a unique online shopping experience for Thai customers and establish a comprehensive digital ecosystem through a new platform named JD.co.th.

Tos Chirathivat, Chairman and CEO of Central Group Co., Ltd. stated, “This is another important step for our business as we celebrate the 70th anniversary of Central Group, a leader in retail in Thailand, Vietnam, and Europe. We are reinforcing our Digital Centrality strategy by joining forces in a 17.5 billion baht investment with JD.com, a leader in e-commerce technology, logistics, fintech, and the use of big data and AI to create a new e-commerce platform named JD.co.th under the trademark JD Central, which is set to launch in 2018. We aim to establish the first comprehensive digital ecosystem while developing Central Group's businesses into the largest omnichannel in Thailand, fully meeting customer needs in the 4.0 era, and promoting Central Group's significant growth, targeting over 15% of online sales across the group within five years.

This collaboration not only creates a seamless shopping experience for customers but also supports the government's Thailand 4.0 policy, which focuses on developing human resources to keep pace with the digital world, increasing employment rates, and promoting exports for small and medium-sized enterprises (SMEs). It also contributes to the development of the Eastern Economic Corridor (EEC) by establishing a headquarters to serve as a digital hub for Southeast Asia.”

Richard Liu Chairman and CEO of JD.com said “Thailand has a large population, modern infrastructure, and widespread internet services, which greatly facilitate the development of e-commerce and fintech services. Additionally, collaborating with Central Group, the leading comprehensive retail business in Thailand, allows us to understand customers better and strategize to meet the Thai market's demands, enhancing JD Central's ability to provide the best experience for customers, support the growth of SMEs, increase the export rate of Thai products, and develop into the best e-commerce website in Southeast Asia.”

Yonn Phokthap, President of Central Group revealed, “This phenomenon of the joint venture between two giant companies in Asia will help Central Group become a full-fledged leader in the digital world of 4.0 and accelerate the realization of our Digital Centrality strategy through a comprehensive and robust digital ecosystem in four key areas:

  1. E-commerce gathering various stores, flagship stores of Central Group, and quality products from both Thailand and abroad, including SME products at fair prices, along with special offers on a user-friendly website suitable for customers of all ages worldwide.
  2. E-logistics transforming traditional product transportation with advanced technology to make shipping faster and more accurate, such as using drones, autonomous cars, etc., along with supply chain management systems and modern warehouses.
  3. E-finance developing fintech services to facilitate finance for customers and suppliers, aiming to create an 'E-wallet' and other easy-to-use online financial services, preparing for a cashless society in the future.
  4. Technology and data leveraging various technologies to enhance business development at every stage, including using big data analytics systems, cloud technology, AI, chatbots to improve the e-commerce website and fintech services to meet customer needs, as well as using drone technology, autonomous cars, and automated robotic systems in warehouse management to enhance logistics efficiency and deliver products to consumers.

This new digital ecosystem not only opens access for all customers to utilize services but also helps expand Central Group's community product projects, providing opportunities for over 10,000 Thai SMEs, including OTOP products and goods from local farmers, to grow and succeed alongside us, increasing the export of quality products to international markets and expanding the market to cover customers both domestically and internationally. All products displayed on the JD.co.th website will also appear on the JD.com website in China, with an expected value of Thai product exports to China not less than 100 billion within two years.”

Thank you for the information from centralgroup.com