Thailand Will Become A New Battleground For China'S Electricity Supplier Giants To Speed Up Market Expansion

Reuters has quoted people familiar with the matter that Jingdong plans to invest $500 million to establish an electricity supplier joint venture with Central Group, the largest retail group in Thailand.

It is reported that the company will help Jingdong and

Amazon competes in the Southeast Asian market.

Informed sources told the Bangkok post that Jingdong finally formed a joint venture with the central group and established an e-commerce alliance to try to speed up its market expansion.

This reporter tried to verify the matter with Jingdong, so far the other side has not responded.

Although Jingdong has declined to comment on whether the cooperation will be implemented this year,

It also shows that expanding e-commerce in Southeast Asia is an attractive investment project because it is now in an undeveloped market.

According to the analysis of the Bangkok post, there are three main factors to promote China's investment in e-commerce market in the region.

The first is the more developed Internet and mobile communication penetration in the region, plus the huge potential hidden behind the Thailand online retail market.

Data show that in the retail market, Thailand's online retail accounts for 2% of its total retail sales, compared with 10% in the US and 15% in China.

According to the report released by Google and Temasek in 2016, Thailand

The market is currently on the scale of $900 million, and the next 10 years are expected to grow by 29%.

In 2025, the scale of e-commerce market in Southeast Asia will reach US $88 billion, an increase of 15 times compared with the current level.

According to the sources, the population structure of Southeast Asia is similar to that of China 10 years ago, which indicates that Chinese enterprises believe they have rich experience to bring Thailand and other Southeast Asian countries into the field of e-commerce.

Second, the Thailand government put forward the 4 strategy of Thailand in 2016, and vigorously developed high-tech and innovative technology industries.

Among them, the Eastern Economic Corridor is a strategic project of Thailand's top priority to actively promote the 4 strategy, which will improve the development of e-commerce and technology in Thailand.

Third, in Southeast Asia, Thailand is the second largest economy, with per capita GDP ranking the top three in Southeast Asian countries, and Thailand is also gradually expanding its trade scale with China.

As the center of Southeast Asia, because of its convenient geographical advantages and favorable trade opportunities with Burma, Laos, Kampuchea and Malaysia, the logistics infrastructure such as Thailand and China will soon cross border trade through e-commerce platforms in these countries.

Jarit Sidhu, a research manager at IDC, a market research firm, has said that Jingdong's joint venture with the central group will perfectly integrate online experience and marketing. In the short term, Jingdong will launch a price war with Lazada.

At present, Thailand's electronic business platform mainly includes Lazada invested by Ali, Ascend of CP Group group in Thailand, and 11 Street in Korea.

"It is learnt that the cooperation between the two companies will develop full channel marketing, and consumers can buy online and offline simultaneously.

In the competition of Internet giants such as Amazon and Alibaba, the full channel marketing strategy is becoming more and more popular, and they are also buying entities in the near future.

The source said.

Thailand electric business association chairman and Tarad.com founder Pawoot Pongvitayapanu said that Thailand will become a new battleground for China's electricity supplier giants. The cooperation between Jingdong and the central group also marks the beginning of Thailand's local electricity suppliers overseas.

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