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

Shanghai is banking on the live-streaming industry to stimulate China's sluggish consumer spending. According to a three-year strategy, the regional sector is projected to produce almost US$85 billion in online sales by 2026.

The government of Shanghai has announced its intentions to enhance the city's live-streaming industry, aiming for almost US$85 million in online sales by 2026. This move comes as the Chinese financial capital seeks to stimulate consumer spending amidst a sluggish national economy.

The "Three-Year Strategy for Superior Growth of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled on Monday. By 2026, the local industry aims to achieve an annual gross merchandise value of 600 billion yuan (US$84.6 million), create 10 leading live-streaming platforms, nurture a number 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 latest three-year strategy, an extension of the 2021-2023 scheme, underscores the significance of the live-streaming sector in stimulating consumer expenditure and enhancing Shanghai's reputation.

The city administration has plans to harness the power of the thriving live-streaming market to stimulate various sectors such as consumerism, commerce, industry, and culture. This strategy is expected to inject fresh energy into Shanghai's economic and societal progress, according to the blueprint shared by the Shanghai Municipal Commission of Commerce.