Chinese e-com giant JD to expand presence in Indonesia

"We are concentrating on offering reliable shopping experiences through quality and authentic products, empowering merchants with advanced logistics capabilities and technical services, as well as developing a technology-driven omni-channel model and experience in Indonesia," Zhang told a Chinese media outlet.

JD will introduce its relatively mature technologies, services and products to markets there, carry out extensive cooperation with more local partners, and let instant delivery and logistics services cover a wider range of areas in Indonesia, he added.

The Chinese company recently opened its first overseas e-space store in Indonesia. E-space is the mega retail experience store chain first launched by JD in 2019 in Chongqing before spreading to other cities.

Located in one of the largest shopping malls in West Java province, the nearly 1,300-square-metre store offers thousands of types of products from various brands of smartphones, gadgets, laptops, home appliances, home living and furniture.

"As the first e-commerce platform in Indonesia to provide omni-channel sales, we firmly believe that being able to provide consumers with the experience of shopping for whatever, whenever and wherever is the best experience," Zhang said.

A report from JPMorgan said Indonesia's e-commerce market makes up only a tiny percentage of total retail sales in the country at just 3 per cent. It said sales are set to rise at a compound annual growth rate of 14.8 per cent to 2023. With young consumers, which increasingly rely on their smartphones, the country represents a huge opportunity for merchants to tap into.

JD.ID started operations in Indonesia in 2015. Over the past five years, the company has established 18 warehouses and 142 distribution stations in Indonesia, covering 90 per cent of provinces and more than 500 cities. About 85 per cent of orders can be delivered on the same day or the next day, despite the fact that Indonesia has thousands of islands.

Although e-commerce is developing rapidly, more than 90 percent of commerce in Indonesia was still offline in 2020, said a report from consultancy PWC.

The company announced completion of its first government-approved drone flight in Indonesia in 2019, marking a breakthrough in drone delivery services in Southeast Asia.

JD has stepped up its efforts to expand its presence in Southeast Asia in recent years. It formed its joint venture with Thai conglomerate Central Group to enter Thailand in 2017. In 2018, it made a strategic investment in Tiki.vn, Vietnam's leading business-to-consumer e-commerce platform.

Fibre2Fashion News Desk (DS)