The Shanghai municipal government said it plans to boost the city’s live-streaming sector, targeting nearly US$85 million in online sales by 2026, as the Chinese financial hub looks to raise consumer spending in a lacklustre national economy.
Under the “Three-Year Action Plan for High-Quality Development of Shanghai’s Live-Streaming Economy (2024-2026)” released on Monday, the local sector by 2026 should generate an annual gross merchandise value of 600 billion yuan (US$84.6 million), establish 10 top-tier live-streaming platforms, foster a batch of multichannel networks (MCNs) and brands, and come up with a hundred “distinctive scenarios” for live-streaming.
MCNs are companies that help live-streaming influencers manage their businesses.
The new three-year plan, which builds on the previous 2021-2023 programme, highlighted the role of the live-streaming industry in encouraging consumer spending and promoting Shanghai’s image.
The municipal government aims to “leverage the live-streaming economy’s potential to empower consumption, trade, industry and culture, injecting new momentum into Shanghai’s overall economic and social development”, the Shanghai Municipal Commission of Commerce said in its blueprint.
Shanghai joins major cities like Beijing, Shenzhen and Hangzhou that have released similar measures, leveraging the booming live-streaming industry to stimulate flagging consumption.
In the first three months of this year, Shanghai’s e-commerce trade value rose 12.7 per cent year on year to 897.9 billion yuan, with online retail sales rising 17.2 per cent to 361.5 billion yuan, accounting for 11 per cent of the national total.
As part of the latest plan, Shanghai authorities pledged to support eligible e-commerce entities, including providing them with advanced computing power, in line with the city’s push on artificial intelligence.
The government also encouraged financial institutions, including venture capital firms, to deliver “high-quality financial services” tailored to the needs of the live-streaming economy.
Expanding the global reach of its live-streaming sector is also a focus of Shanghai’s vision.
Platforms and MCNs are encouraged to target foreign markets with multi-language capabilities and develop cross-border e-commerce, aligning with China’s Belt and Road Initiative through the concept of “Silk Road e-commerce.”
Source: SCMP
