(Yicai Global) Jan. 31 -- JD.Com said the Chinese online retail giant will close its e-commerce sites in Indonesia and Thailand because the markets in Southeast Asia underperformed and will focus on its logistics business in the two countries.

While shrinking its e-commerce business in SE Asia, JD.Com is working to enhance its logistical capability in the region, the Beijing-based company told Yicai Global yesterday.

JD.Com first launched its e-commerce site in Indonesia before entering the Thai market, and replicated its China business model -- e-commerce with distribution logistics -- in the two countries.

JD.Com will continue to expand its logistics presence in SE Asia, Europe, and North America, the firm said. It has 20 smart service warehouses in Indonesia, and its logistics arm has one self-operated warehouse in Malaysia, with a second under construction. Air and maritime transport services to the United States and Europe from Malaysia were launched last year, it added. 

The company has a network of self-operated warehouses throughout the US, Germany, the Netherlands, France, and the United Kingdom, JD.Com said. Its overseas storage area grew 70 percent last year from 2021, with some 90 bonded, direct-mail, and overseas warehouses in operation.

Despite not-so-high input costs, cross-border warehousing is more robust and can serve the firm's global supply chain by directly using its mature warehousing logistics technologies, JD.Com added.

Editors: Shi Yi, Martin Kadiev