In Shops

Ookbee Mall facing fierce competition refocuses on e-book business

shutterstock_399292774

Ookbee Mall Thailand, the operator of ookbeemall.com, announced on Thursday it will close down its e-commerce website in March after facing a heavy financial burden brought on by fierce competition.

The company, a joint venture firm between Thailand’s startup Ookbee and Japan’s Transcosmos, was set up in November 2015 with a combined 150 million baht from both registered capital and investment spending.

Ookbee Mall Thailand Co, however, will not be dissolved.

The shutdown of Ookbee’s website follows a similar move by Japanese e-commerce operator Rakuten last year, which closed down its business-to-consumer e­commerce site in Southeast Asia markets.

SEE ALSO: How China’s e-commerce giants are catering to online shoppers

Natavudh Pungcharoenpong, founder of Ookbee, Asean’s leading e­book store and co­founder of Ookbee Mall Thailand, said running an e­commerce business in Thailand requires a large scale of operations and funds as global players are using subsidised promotion strategies.

“We can no longer afford the losses. We would rather invest our money in other profitable businesses instead,” he said.

Ookbeemall.com sells books, magazines, and beauty and cosmetic products that are both locally­made and imported from Japan.

Several e­commerce operators in Thailand went out of business last year due to the intense competition.

(Source: Bangkok Post)

Follow Retail in Asia on Facebook, Twitter and LinkedIn.

Get our top stories delivered to your inbox: