Internet means challenges, opportunities for industries

"Shoes and garments, for example, don't need installation or after-sales service," said Dong, adding the company will introduce more tailored services for customers at its flagship stores.

"For traditional manufacturers, Internet service should not only be used in sales but also in corporate management and product research to improve efficiency," Dong said.

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Li Dongsheng, a national lawmaker and chief executive officer of TCL Corp, one of China's leading consumer electronics makers, said domestic manufacturers should focus more on innovation, not only in technology but also the emerging Internet business model.

"Facing the challenge of the booming Internet industry, we need to give priority to improving the quality of our products by investing more in technology. Moreover, we need to develop new business models that are well integrated with the Internet," Li said.

At a panel discussion during the annual NPC session, Li said the company, which has a large market share in TV sets, has also developed smartphones.

The company's sales of smartphones grew by 56 percent year-on-year in 2014, according to Li.

TCL's exports rose 37 percent last year, becoming an engine of the company's growth. Sales were up 23 percent to 85.5 billion yuan, according to Li, and the company aims to record sales of more than 100 billion yuan this year.

In the Report on the Work of the Government, Premier Li Keqiang said China will promote information consumption and implement China's broadband strategy.

"We will encourage the creative development of e-commerce," said Li, while delivering the report to deputies to the NPC and members of the Chinese People's Political Consultative Conference.

China's e-commerce market grew more than 25 percent last year to surpass 10 trillion yuan, according to the National Development and Reform Commission.

That growing market means further challenges to the traditional business model of manufacturers, analysts said.

"It also means potential opportunities for manufacturers that are willing to be actively engaged in the booming e-commerce, sector" said Feng Shengping, chief researcher of the Guangdong Provincial Situation Research Center.

Feng urged domestic manufacturers to focus more on the overseas market by promoting and selling products on the Internet to help reduce operating and sales costs.