Table of Contents

Lessons from JD.ID’s Failure: Why a Unicorn E-commerce Couldn’t Survive in Indonesia

Discover why JD.ID, once hailed as a unicorn with a multi-trillion investment, shut down its operations and what entrepreneurs can learn from its downfall.

Introduction

JD.ID was once seen as a major contender in Indonesia’s booming e-commerce market. Backed by its parent company JD.com and armed with an investment of over 21 trillion rupiah, the platform promised authenticity, strong logistics, and a premium customer experience. Yet, by March 31, 2023, JD.ID had shut down completely. What went wrong? And more importantly, what lessons can businesses take away from this failure?

The Rise of JD.com

JD.com, known as Jindong, was founded in 1998 as a small electronics store. By 2004, it transitioned online and evolved into one of the world’s largest e-commerce platforms. With strategic backing from Tencent, access to WeChat, and advanced logistics operations, JD.com thrived in China, even surpassing Alibaba’s revenue in 2022.

Key Strengths of JD.com

• Strong focus on last-mile delivery and logistics
• Early adoption of consumer behavior shifts during the SARS crisis
• Investment and support from Tencent (14% stake)
• Expansion from electronics to full-scale e-commerce

JD.ID’s Entry into Indonesia

Indonesia, with its massive digital adoption and 76% internet penetration, was an attractive market. JD.ID entered in 2015, focusing on electronics and building trust with guarantees of authenticity. They also launched JDL Express Indonesia, establishing 11 warehouses, 250 drop points, and 3,000 couriers.

At first, JD.ID was well-received, especially among customers seeking reliable electronics. However, the excitement didn’t last long.

Why JD.ID Failed

Despite massive investments, JD.ID ranked only 8th in Indonesia’s e-commerce landscape. Several factors contributed to its downfall:

1. Poor Market Adaptation

JD.ID assumed that what worked in China would also work in Indonesia. They struggled to pivot beyond electronics into general commerce, unlike their parent company.

2. Weak Management and Hiring

Reports surfaced that local executives and vice presidents lacked integrity and transparency. Founder Richard Liu accused leaders of “beautifying” business reports, creating a toxic culture where bad news was hidden instead of solved.

3. External Pressures

Global economic downturns forced JD.ID to lay off 30% of its workforce in 2022. Rising competition from Shopee, Tokopedia, and TikTokShop further reduced its market share. By late 2022, rumors of closure had already spread.

Lessons Entrepreneurs Can Learn

“Good strategies need good people to execute them. Without integrity and adaptation, even billions in funding won’t guarantee success.”

• Adapt to local markets: Don’t assume strategies from one country will work elsewhere.
• Hire for character, not just skills: Honest reporting and accountability are crucial.
• Stay agile: E-commerce is fast-paced; late pivots often mean failure.
• Execution matters more than ambition: A well-funded strategy is meaningless without operational excellence.

Closure of JD.ID

On March 31, 2023, JD.ID officially ceased all e-commerce operations. Sellers were urged to withdraw products, while customer data was reportedly deleted for privacy protection. The company shifted focus to international logistics rather than local online retail.

Conclusion

JD.ID’s failure highlights that even global giants with billions in capital can stumble if they fail to adapt, hire wisely, and execute with integrity. For entrepreneurs, this is a reminder that execution, culture, and customer understanding are more important than funding alone.

What do you think—could JD.ID have survived if they pivoted earlier? Share your thoughts in the comments and let others learn from this story.

Labels:

Finance

References:

• Video: Belajar Dari GAGALNYA JD.ID Direkturnya Suka Boong?? #BedahBisnis
• Channel: Raymond Chin
• Source: https://www.youtube.com/watch?v=XAsI0MDrkdE