Erke Photo: CFP

Chinese sportswear brand Erke has established a new industrial company in Central China's Henan Province, showed Chinese corporation online database Tianyancha. According to online records, the company is being backed with 100 million yuan ($15.63 million) of registered assets. The news quickly went viral on Chinese Twitter-liked social media Sina Weibo and was trending early on Tuesday.

According to a video posted by the official Sina Weibo account of Erke on Monday evening, the new industrial company is Erke's new manufacturing factory in Shangqiu, Henan Province. The factory is forecast to create over 3,000 new jobs. Wu Rongzhao, Chairman of Erke reposted the video and joked with netizens and called them to "stamp sewing machines together."

Most netizens on Sina Weibo were enthusiastic about the news of Erke's new factory. Netizen named "Hepang happy 529" said Erke's factory may generate a virtuous circle by creating more local job opportunities.

Erke came under the spotlight overnight in July 2021 after netizens learned that the company announced a generous low-profile donation of 50 million yuan to help with flood relief in Henan even if the company is at the edge of bankrupt, which sparked Chinese consumers' shopping spree for Erke's products.

However, despite a spike in interest driven by the company's philanthropy, recent sales and social media attention have both been reportedly on the downturn spiral.

There were still a number of supporters of Erke on social media, with many fans praising the value and durability of the firm's clothes and footwear. Sina Weibo netizen named "Deasel" suggested that Erke will still be their first choice when buying new clothes or shoes after the hype.

Global Times