Shanghai’s $85 Billion Bet on Live-Streaming Economy to Revitalize National Consumption by 2026

Shanghai is banking on the live-streaming economy to stimulate China's sluggish consumer spending. With a strategy spanning over three years, the local industry is projected to produce nearly US$85 billion in online sales by 2026.

The local government in Shanghai announced its intentions to enhance the city's live-streaming industry, aiming to achieve approximately US$85 million in internet sales by 2026. This is part of an effort to stimulate consumer expenditure amidst a sluggish nationwide economy.

On Monday, Shanghai unveiled its "Three-Year Action Plan for High-Quality Development of the Live-Streaming Economy (2024-2026)". According to this plan, by 2026, the city's live-streaming industry should produce an annual gross merchandise value of 600 billion yuan (US$84.6 million). The plan also aims to build 10 premier live-streaming platforms, nurture a group of multichannel networks (MCNs) and brands, and create a hundred "unique scenarios" for live-streaming.

Multi-Channel Networks (MCNs) are firms that assist influencers who live-stream in handling their operations.

The recently unveiled triennial strategy, which is an extension of the 2021-2023 scheme, emphasized the significance of the live-streaming sector in stimulating consumer expenditure and enhancing the reputation of Shanghai.

The city administration intends to utilize the potential of the live-streaming economy to stimulate consumption, commerce, manufacturing, and culture, injecting fresh impetus into Shanghai's comprehensive economic and social growth, according to a statement by the Shanghai Municipal Commission of Commerce in its strategic plan.