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

Shanghai is banking on the live-streaming industry to invigorate China's sluggish consumer spending. According to a three-year strategy, it is projected that the local industry will produce close to US$85 billion in online sales by 2026.

The city government of Shanghai has announced plans to enhance the city's live-streaming industry, aiming to achieve approximately US$85 million in online sales by 2026. This is part of an effort to increase consumer expenditure amid a sluggish economy nationwide.

The "Three-Year Action Plan for High-Quality Development of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled on Monday, which laid out goals for the local live-streaming industry to reach by 2026. These goals include achieving an annual total sales value of 600 billion yuan (US$84.6 million), setting up 10 premier live-streaming platforms, nurturing a range 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 introduced three-year scheme, an extension of the prior 2021-2023 initiative, underscores 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 industry to stimulate consumerism, commerce, industrial growth, and culture, thereby infusing fresh vitality into Shanghai's comprehensive economic and societal progress, according to a plan released by the Shanghai Municipal Commission of Commerce.