Social e-commerce firm Pinduoduo announced Tuesday it will invest RMB 1.5 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 RMB 1.5 billion (around $222 million) as cash incentives to help declining local brands boost sales over the next three years. It will also offer an additional RMB 10 billion-worth of traffic resources, along with support in new product development, refining recommendation algorithms, and training sales staff.

A company representative from Pinduoduo declined to comment further on the program details when contacted by TechNode on Wednesday.

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Jill Shen

Jill Shen is Shanghai-based technology reporter. She covers Chinese mobility, autonomous vehicles, and electric cars. Connect with her via e-mail: jill.shen@technode.com or Twitter: @yushan_shen