Shanghai’s Live-Streaming Economy: A $85 Billion Bet to Revive China’s Consumption

Shanghai is wagering on the live-streaming economy to revitalise China's feeble consumer spending. According to a three-year strategy, the domestic industry is predicted to yield close to US$85 billion in internet sales by 2026.

The Shanghai city administration has announced its intent to enhance the city's live-streaming industry, aiming for almost US$85 million in digital sales by 2026. This move is part of the city's strategy to bolster consumer expenditure amid a sluggish national economy.

On Monday, the "Three-Year Strategic Plan for the High-Quality Growth of Shanghai's Live-Streaming Market (2024-2026)" was unveiled. By 2026, this initiative aims to produce an annual total merchandise worth of 600 billion yuan (US$84.6 million), create 10 premier live-streaming platforms, nurture a group of multi-channel networks (MCNs) and brands, and devise a hundred unique live-streaming situations.

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

The latest triennial strategy, an extension of the prior 2021-2023 scheme, emphasized the importance of the live-streaming sector in boosting consumer expenditure and enhancing Shanghai's reputation.

The city administration intends to tap into the potential of the live-streaming economy to boost consumption, commerce, manufacturing, and culture, providing a fresh boost to Shanghai's comprehensive economic and social progress, as outlined in the blueprint by the Shanghai Municipal Commission of Commerce.