The founder of Tarad.com has encouraged the competition watchdog to look into the possibility that Lazada and Shopee would hold a monopoly over the Thai e-commerce business if JD Central exits the market in March.
Despite continuing to honor customer offers through March 31, JD Central declared on Monday that it would cease operations in Thailand as of March 3.
Tarad.com founder Pawoot Pongvitayapanu stated on Monday that the Trade Competition Commission of Thailand (TCCT) must protect consumers’ interests from unfair market conditions.
Due to JD Central’s withdrawal, the Thai e-commerce market is at risk of duopoly.
In comparison to traditional channels, a duopoly in e-commerce would probably have a more negative impact on vendors and customers.
“Having just two main competitors will restrict the options available to both users and sellers, and platform administrators can compel vendors to adhere to their rules.”
Pawoot noted that Lazada just increased the cost for retailers on its platform last year.
Thailand’s top two online shopping platforms are Shopee and Lazada, which dominate the market with an average of 63.1 and 50.3 million visitors per month. JD Central is ranked eighth with almost 2 million monthly visitors.
2018 saw the introduction of JD Central by China’s JD.com and Thailand’s Central Group. According to a source, Central, which had made a 17.5 billion investment in the platform, has opted to leave.
Rakuten of Japan and 11Street of South Korea withdrew from the Thai e-commerce sector in 2016 and 2018, respectively, as a result of the fierce competition amongst the market’s major competitors.
