Business

‘Central’ joins ‘JD.com’ to spend 1.7 billion on ‘Alibaba’ to seize online market

Central Group of fireworks in the region draws “JD Group”, a giant alliance from China, to join 17 billion into business wings, hoping to become the leader of e-commerce with a market value of 2.52 trillion. Continue to push more online sales. To 5% to compete for the 3.8 billion billion cake. The big movement of Central Group announced a partnership with JD.com and JD Finance, a partner of Chinese e-commerce giant Fintech. Jointly invested in 50:50, totaling 500 million US dollars, or about 17,000 million baht, to do e-commerce and fintech businesses in Thailand, shaking up the retail industry Shopping and Fintech are now regional.

Collaboration between Central Group and JD.com Is a major step forward of the Central Group and creating new phenomena for the Thai business sector. Mr. Tos Chirathiwat, Chairman of the Executive Committee of the Central Group of Companies, gives the reason for this cooperation that Because Central aims to become a true leader in online retailing in Thailand And today, smartphones are part of the Thai way of life. The tendency of online shopping will increase. Therefore, to increase efficiency and to make online shopping easier, it is necessary.

In the past, Central has been strong in the retail business, which has a network of stores, brands, business partners and consumer behavior which is a big database (Big Data) and has tried to increase efficiency. The picture of the backyard system including Omni Channel and Logistics To support future expansion While this type of cooperation will be clearer this November.

While the success of JD Demonstrated strength And the company’s potential That will come in to help supplement the Central group Able to expand in the e-commerce market And jointly develop Omni Channels in the e-commerce platform as well Which is not only in Thailand, with the potential of both companies, the opportunity to enter the Asian market is not difficult.

++ E-Business Filled with
Mr. Worawut Ounjai, Chief Executive Officer, COL Public Company Limited, Founder of Office Mate Public Company Limited One of the pioneers of e-commerce in Thailand And the Central Group acquired in 2012, said the rapid growth and expansion of the online market in Thailand Resulting in high investment The company to invest must have high potential and large size with high income in the amount of hundred billion baht. While COL itself has revenue of 12 billion baht, it is difficult to invest in the ten billion baht and have to bear the burden of loss in the initial stages. Most recently, the Central Group adjusted its business model and separated the online business from CO. In order to continue investing by myself in the past July Which aims to develop the business into e-Business which consists of 4 pillars which are E-commerce, E-Money, E-Logistics and E-Data or Big Data. Which will be linked to the Internet of Things

In the past, Thailand has developed both in the field of e-commerce and e-money. But still lacking issues of E-Logistics and E-Data, which Japan, Korea, the United States and European countries There has been a lot of development and progress. While Singapore began operations Therefore, if Thailand has integrated development, it will increase its potential and create international competition.

The performance of Central Group this year Aim to have sales of 3.82 billion baht, an increase of 14.9%, with the proportion of sales from online businesses less than 1% and the goal is to increase to 5% within 3-5 years.

Mr. Chen Zhang, Chief Technology Officer of JD.com, revealed that this investment is to find the same opportunity to increase retail potential in Thailand. Because the trade is still in the old form And aims to fill the potential of retailers and create more innovation. JD.com to increase the potential of the retail, which has Central strengths offline. JD.Com has the largest and strongest online.

“The reason for this investment is because Thailand is another step that the market is growing. Because it accounts for only 2%, while China is 15% and the United States is 10%. “

Mr Chen stated that The retail industry revolution, the first was the department store. Next is the convenience store era, the next is the supermarket era and the 4th is the e-commerce era. In addition, by the end of this year, the joint venture company will apply for a license to conduct online transactions from the Bank of Thailand. Thailand

Mr. Phawut Phongvitayapanu President of the Thai Electronic Commerce Entrepreneurs Association said that Central has partnered with JD China’s second-largest e-commerce service provider, with 20-30% market share in China, after Alibaba It is considered an important step for the Central Business Group as a Thai retail giant to move from offline to online. By relying on the strength of JD That has an ecosystem And business knowledge of e-commerce Including funding to support By competing in the e-commerce business in Thailand Still focusing on marketing spending To create a customer base

The survey of the value of electronic commerce in Thailand by ETDA (Etda) expects 2016 to grow at a leap of 12.42% with a total value of 2.52 trillion baht and continues to grow.

JD.com and JD Finance are major Chinese e-commerce companies. Providing online shopping, buying via WeChat and Mobile QQ at the end of June 2017. There are 7 offices and 335 warehouses in 2,691 districts and cities throughout China. And is a NASDAQ100 member and a Fortune Global500 company

Source: The Thansettakij Newspaper, Year 37, Issue 3,297, 17 – 20 September 2017

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