On Dec 28, the Shanghai Municipal Commission of Commerce issued a notice introducing a trial administrative guideline for establishing and assessing live-streaming e-commerce bases in the city. The measures came into effect on Jan 1, 2024 and will remain in force until Jan 1, 2026.

Eligibility criteria

To be eligible, bases must meet the following criteria:

(1) The operating entity of the base must be a registered enterprise in Shanghai, established for over a year, and in good standing.

(2) The operating entity of the base and resident enterprises must comply with relevant laws and regulations, operate with integrity, have no serious violations in the past year, and not be listed as seriously untrustworthy entities.

(3) Clear plan: The base should have medium to long-term development plans and goals, and possess the capability to pioneer and shape the evolving landscape of live-streaming e-commerce. It should uphold the right values and aesthetic trends.

(4) Adequate infrastructure: The base should have a well-equipped office space, covering a minimum of 1,000 square meters, with no fewer than 10 live broadcast rooms and distinctive scenes.

(5) Robust service system: The base should have been in operation for over a year, with the operating entity demonstrating professional operational capabilities and a stable business team. A comprehensive livestreaming e-commerce talent training system should be in place, offering regular training sessions, salons and other activities. Additionally, there should be a sound mechanism for assessing the settlement of enterprises.

(6) Healthy livestreaming ecosystem: The base should have no fewer than 20 resident enterprises or enterprise customers, no fewer than 30 anchors under contract or in cooperation, and no fewer than 2,000 sessions of live-streaming sales each year. The total annual transaction volume through live-streaming (including resident enterprises) should exceed 100 million yuan. Stable cooperation with partners in the livestreaming e-commerce industry and a good cooperation mechanism with livestreaming e-commerce platforms and upstream and downstream enterprises are essential.

(7) Distinctive industry features: The base and resident enterprises are encouraged to expand livestreaming e-commerce application scenarios, playing an active role in a wider range of fields and events, like participation in Silk Road E-commerce activities, cultivation of new online consumer brands, global premieres for new products, livestreaming of new local-brand offerings, the development of time-honored brands, domestic brands and industrial brands, the promotion of cultural tourism, as well as the facilitation of local life services.

(8) Explore new technologies: Bases should conduct research on live-streaming e-commerce, apply new technologies, develop innovative products and business models, meet diverse consumer demands, and enrich the livestream shopping experience.

(9) Active participation in consumption-promoting activities: Resident enterprises or brands should actively engage in consumption-promoting activities such as May 5th Shopping Festival, Shopping Activity for Silk Road E-commerce Products, Online Shopping Festival for High-Quality Brands, Digital Life Festival, Livestreaming November, Spring Festival Online Shopping Festival, and Coffee Culture Week.

Assessment procedure

Each year, the base is required to submit a report detailing its operational performance from the previous year to the district commerce authorities, who will then forward the report to the Municipal Commission of Commerce. The municipal commission will conduct a thorough assessment of the base's annual operations, providing feedback to the relevant district commerce authorities using the A, B, C grading system.

Grade A: Awarded to bases exhibiting exceptional operational performance, delivering exemplary services to resident enterprises, fostering substantial regional economic impact, making noteworthy social contributions, and showcasing a strong exemplary influence.

Grade B: Assigned to bases with average operational performance, providing specific services to resident enterprises, and possessing a degree of exemplary influence.

Grade C: Allocated to bases demonstrating poor operational performance, limited capabilities in influence, services, and development. This grade is also applied in cases of repeated violations by the operating entity or resident enterprises.

Bases classified as Grade C will be subject to enhanced management by the district commerce authorities, receiving tailored guidance and supervision. Those graded C for two consecutive years will be revoked of their base certifications.

Source: sww.sh.gov.cn