What: JD.com is set to close its e-commerce services in Indonesia and Thailand after a difficult year for China’s technology and retail sectors.

Why it is important: As China’s largest online retailer and biggest overall retailer, the company’s exit reflects the highly competitive e-commerce landscape in Southeast Asia.

JD.com is retreating from Southeast Asia, ending its services in Thailand from March 3 and Indonesia at the end of the same month.

The retailer, which started in 2015, failed to gain traction against larger competitors such as Alibaba Group, Lazada, and Sea Ltd in addition to a slowing economy and the impact of Covid-19 restrictions in China

The company stated that it will continue to serve Southeast Asia and global markets through its supply chain infrastructure. While the retailer is exiting the consumer side, they plan to focus on merchants, brands, and logistics infrastructure in Southeast Asia.

China’s JD.com to shut e-commerce sites in Indonesia, Thailand