Pinduoduo invests to shore up Shanghai heritage brands
Chinese social ecommerce specialist Pinduoduo will invest CNY1.5 billion (USD0.2 billion) to boost the profile of 100 heritage Shanghai brands that have seen declining sales in recent years, in response to a municipal government initiative to reinvigorate its consumer goods manufacturing industry.
Pinduoduo will offer cash incentives to help 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 NPD, refining recommendation algorithms, and training sales staff. The heritage brand programme may also be an astute move to improve the company’s constrained finances as well as address its reputation as a platform for counterfeit goods.