Pinduoduo invests to shore up Shanghai heritage brands

Source: technode, Friday, May 10, 2019

Social ecommerce firm Pinduoduo has announced that it will invest CNY1.5 billion (USD0.2 billion) to shore up 100 heritage Shanghai brands that have seen sales dwindle in recent years, in response to a municipal government initiative to reinvigorate its consumer goods manufacturing industry.

The Shanghai-based online retailer said it would offer CNY1.5 billion (around USD222 million) as cash incentives to help declining local brands boost sales over the next three years. It will also offer an additional CNY10 billion-worth of traffic resources, along with support in new product development, refining recommendation algorithms, and training sales staff.