Shanghai’s $85 Billion Bet on Live-Streaming Economy to Revitalize China’s Sluggish Consumption

Shanghai is counting on the live-streaming industry to stimulate China's weak consumer spending. According to a three-year strategy, it is projected that the local market will produce almost US$85 billion in online transactions by 2026.

The government of Shanghai has announced its intentions to enhance the city's live-streaming industry, aiming for approximately US$85 million in online sales by 2026. This move comes as the financial center of China is seeking to increase consumer expenditure amid a sluggish national economy.

Shanghai's live-streaming industry is set to undergo significant growth and development over the next three years, according to a newly released plan. The "Three-Year Action Plan for High-Quality Development of Shanghai’s Live-Streaming Economy (2024-2026)," launched on Monday, outlines ambitious goals for the sector by 2026. These include generating an annual gross merchandise value of 600 billion yuan (equivalent to US$84.6 million), building ten leading live-streaming platforms, nurturing a series of multichannel networks (MCNs) and brands, and creating a hundred unique live-streaming scenarios.

MCNs are firms that assist influencers who live-stream in handling their operations.

The freshly unveiled triennial strategy, an enhancement of the preceding 2021-2023 scheme, emphasized the significance of the live-streaming sector in stimulating consumer expenditure and boosting the reputation of Shanghai.

The city administration intends to use the potential of the live-streaming economy to boost consumption, commerce, industry, and culture, providing a new impetus for Shanghai's comprehensive economic and social growth, as stated in its strategy by the Shanghai Municipal Commission of Commerce.