Shanghai secures its standing at top of livestreaming totem

Early adopter

Beyond the efforts of individual livestreamers, Shanghai has been working hard to create a favorable environment for the industry.

"The rapid growth of Shanghai's livestreaming industry reflects the strong momentum of advanced productivity in the digital economy era," Yuan Zhongyu, an official with the Shanghai Municipal Commission of Commerce told the Shanghai Observer.

According to the commission, livestreaming retail sales in the city reached about 493.7 billion yuan ($69.48 billion) in 2024, up 12.9 percent year-on-year, and ranked first among Chinese cities.

Thanks to Shanghai's accelerated development in digital consumption, the city's e-commerce transactions grew 12.7 percent year-on-year to exceed 3.27 trillion yuan during the first nine months of this year. This included 369 billion yuan from the livestreaming sector, which surged 23.6 percent from the previous year, said Hua Yuan, secretary-general of the Shanghai municipal government, at a recent news conference ahead of the China International Import Expo.

Shanghai was the first city in the country to introduce dedicated policies to promote the high-quality development of the livestreaming economy.

Last year, the city issued a three-year action plan for the high-quality development of the livestreaming economy between 2024 and 2026, aiming to become a globally influential hub for livestreaming commerce by 2026, with retail sales in the sector targeting 600 billion yuan.

The plan calls for expanding the scale of all types of participants in the livestreaming economy, establishing 10 leading platforms with national and international competitiveness, and nurturing a group of large, influential MCN (multi-channel network) agencies to support top-tier livestreaming hosts.

Shanghai's livestreaming e-commerce stands out for its emphasis on quality and strong brand advantage.

Under top-level planning and policy guidance, the city has formed four livestreaming economy clusters and established 20 distinctive municipal-level livestreaming e-commerce bases, Yuan said.

Wei Yinghui, partner and deputy general manager of Meione, said the action plan provides a clear blueprint for the industry and offers strong policy support for livestreaming e-commerce companies.

"For example, the plan explicitly includes livestreaming e-commerce in the scope of high-tech enterprise recognition, offering eligible companies tax reductions and targeted funding. These direct financial and fiscal incentives can significantly ease the cost pressures of technology development and content innovation, giving companies the confidence to experiment and innovate."

Wei said that by strengthening standards and regulating the industry, the plan helps create a healthier and fairer market environment, allowing competition to focus on quality, service, and innovation.

Su Quan, chief operating officer of Baozun Location, the livestreaming division of Baozun, said the Shanghai municipal government has clearly called for accelerating the development of the industry ecosystem, strengthening key players, optimizing comprehensive services, and reinforcing leading livestreaming platforms. This creates a favorable policy environment and space for top-tier companies like Baozun to grow.

Founded in 2007 and headquartered in Shanghai's Jing'an district, Baozun operates across East Asia, Southeast Asia, Europe, and North America. As of the end of 2024, the company had served more than 490 global brands.