Shanghai’s Bold Gamble: Harnessing Live-Streaming Economy to Ignite China’s Stagnant Consumption, Aiming for US$85 Billion in Online Sales by 2026

Shanghai is banking on the live-streaming market to stimulate China's sluggish consumer spending. A three-year strategy anticipates that the regional industry will yield almost US$85 billion in web-based purchases by 2026.

The Shanghai city authorities have announced their intention to bolster the city's live-streaming sector, aiming for almost US$85 million in internet sales by 2026. This comes as the Chinese economic powerhouse seeks to increase consumer expenditure amid a sluggish national economy.

On Monday, the "Three-Year Strategy for Premium Development of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled. By 2026, it is envisaged that the local industry will produce an annual gross merchandise worth of 600 billion yuan (US$84.6 million), build ten leading live-streaming platforms, nurture a selection of multichannel networks (MCNs) and brands, and devise a hundred "unique scenarios" for live-streaming.

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

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

The city administration intends to harness the power of the live-streaming economy to stimulate spending, commerce, industrial growth, and cultural development, thereby infusing new energy into Shanghai's general economic and societal progress, according to the blueprint revealed by the Shanghai Municipal Commission of Commerce.