Shanghai’s Multi-Billion Dollar Bet on Live-Streaming: A Three-Year Plan to Revive China’s Consumption Economy

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

The local government of Shanghai has expressed intentions to amplify the city's live-streaming industry, aiming for approximately US$85 million in digital sales by 2026. This move comes as the significant financial city seeks to elevate consumer expenditure amidst a sluggish national economy.

The "Three-Year Strategy for the Advanced Growth of Shanghai's Live-Streaming Economy (2024-2026)" was unveiled on Monday. The plan anticipates that by 2026, the local industry will produce a yearly gross merchandise value of 600 billion yuan (US$84.6 million), create 10 leading live-streaming platforms, cultivate numerous multichannel 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 operations.

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

The city administration plans to utilize the potential of the live-streaming market to boost consumer spending, commerce, industry, and culture, providing a fresh impetus to Shanghai's comprehensive economic and social progress, according to a strategy outlined by the Shanghai Municipal Commission of Commerce.