Shanghai’s Multi-Billion Dollar Bet on Live-Streaming Economy: A Strategic Move to Revitalize China’s Ailing Consumer Market

Shanghai is wagering on the live-streaming market to stimulate China's sluggish consumer spending. According to a triennial strategy, the regional sector is expected to yield close to US$85 billion in online transactions by 2026.

The city administration of Shanghai has announced its intention to enhance its live-streaming industry, aiming for an estimated US$85 million in internet sales by 2026. This move is seen as an effort to increase consumer expenditure in the face of a sluggish national economy.

As per the "Three-Year Strategy for Enhancement of Shanghai's Live-Streaming Economy (2024-2026)" unveiled on Monday, the local industry is expected to produce an annual gross merchandise value of 600 billion yuan (US$84.6 million) by 2026. The plan also aims to create 10 premier live-streaming platforms, cultivate a series of multichannel networks (MCNs) and brands, and develop a hundred unique live-streaming situations.

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

The latest triennial strategy, an extension of the 2021-2023 initiative, emphasized the significance of the live-streaming sector in stimulating consumer expenditure and enhancing the reputation of Shanghai.

The city administration has a goal to tap into the opportunities provided by the live-streaming market to boost consumer spending, commerce, various industries, and cultural aspects. This is expected to fuel the overall progress of Shanghai in terms of economy and society, as detailed in the plan laid out by the Shanghai Municipal Commission of Commerce.