Shanghai’s Bold $85 Billion Bet: Boosting National Consumption through Live-Streaming Economy Expansion by 2026

Shanghai is wagering on the live-streaming market to stimulate China's sluggish consumer spending. According to a three-year strategy, the local industry is projected to produce approximately US$85 billion in online transactions by 2026.

The city authorities in Shanghai have announced plans to stimulate the city's live-streaming industry, with goals of achieving around US$85 million in online transactions by 2026. This move comes as the financial capital of China seeks to increase consumer expenditure amidst a sluggish nationwide economy.

The "Three-Year Action Plan for High-Quality Development of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled on Monday. This plan outlines goals for the local industry to achieve by 2026, including generating an annual gross merchandise value of 600 billion yuan (approx. US$84.6 million), creating 10 leading live-streaming platforms, developing a range of multichannel networks (MCNs) and brands, and generating a hundred unique live-streaming situations.

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

The freshly unveiled triennial strategy, an extension of the earlier 2021-2023 scheme, accentuated the importance of the live-streaming sector in boosting consumer expenditure and enhancing Shanghai's reputation.

The city administration plans to tap into the possibilities of the live-streaming market to boost consumer spending, commerce, industrial growth, and cultural enrichment. This will instill fresh vigor into Shanghai's comprehensive economic and societal progression, as per the blueprint provided by Shanghai's Municipal Commission of Commerce.