Shanghai’s Strategic Bet on Live-Streaming Economy: Aiming for $85 Billion in Online Sales by 2026 to Revitalize Chinese Consumption

Shanghai is counting on the live-streaming industry to stimulate China's weak consumer spending. As per a three-year strategy, the local industry is projected to bring in close to US$85 billion in online sales by 2026.

The municipal government of Shanghai has announced its ambition to enhance the city's live-streaming industry, aiming for an approximate US$85 million in online sales by 2026. This move is a part of the city's strategy to stimulate consumer expenditure amidst a sluggish national economy.

As per the "Three-Year Strategy for the High-Quality Progress of Shanghai's Live-Streaming Economy (2024-2026)" launched on Monday, the local industry is expected to produce an annual total merchandise worth of 600 billion yuan (US$84.6 million) by 2026. Also, it aims to set up 10 premier live-streaming platforms, nurture a group of multichannel networks (MCNs) and brands, and create a hundred "unique situations" for live-streaming.

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

The recently introduced three-year strategy, which is an extension of the former 2021-2023 scheme, underscored the importance of the live-streaming sector in boosting consumer expenditure and enhancing the reputation of Shanghai.

The city administration is focused on harnessing the power of the live-streaming economy to boost consumption, commerce, industry, and culture, thereby infusing fresh energy into Shanghai's comprehensive economic and societal growth, according to the Shanghai Municipal Commission of Commerce's strategic plan.