Preface

"Internet Plus" – a new journey

China's economic growth has indisputably slowed, and it may continue to do so in the future. Unlike in years past, external demand is likely to be anaemic, and China's demographic and cost of production advantages are also likely to diminish, making it imperative for China to transform its modes of growth. 2016 marks the beginning of China's 13th five year plan, and in order to achieve proposed development goals, the government has put forward five development concepts: innovation, balanced growth, green economy, opening-up, and inclusive development. Of these concepts, innovation is regarded as the primary driving force for development. It is emphasized in the 13th Five Year Plan that innovation should be given top priority in overall national development, and it is necessary to continuously innovate in the theoretical, institutional, technological, and cultural realms.

The manufacturing industry, which is in desperate need for transformation, and the service industry, with its great potential, need to determine how to implement "Internet Plus" to optimize and innovate business models. This has become the key factor for enterprises in these industries in order to maintain their competitiveness against the backdrop of maturing information technology and rapid Internet penetration.

This Deloitte Perspective focuses on transition trends in manufacturing, healthcare, film production, commercial banks, retail, and other pillar industries against the backdrop of informatization and digitalization. With continued reform, China's economic structure has changed significantly. The service industry now contributes a bigger share of the GDP than manufacturing, and is gradually making a larger contribution to economic growth. However, the trend of informatization in manufacturing remains an important topic. Based on Deloitte’s surveys and interviews of China's advanced manufacturers, Advanced Intelligent Manufacturing comprehensively analyzes the current informatization level of China’s manufacturing and its major difficulties, and proposes customized solutions. Internet Healthcare experienced rapid development last year through breakthroughs and varying degrees of support with regard to policies, funding, and technology. The 13th Five Year Plan repeatedly stressed the importance of “people’s livelihood," and therefore popularized and improved medical services are bound to be key points for reform in the coming three to five years. The “Crossroads” of Internet Healthcare highlights medium-micro levels by discussing medical service providers’ opportunities in medication e-commerce and online diagnosis. It can be said that Retail is the industry most impacted by consumer's increasingly internet-based purchasing models and behavior, and in recent years, the penetration of the Internet has furthered this trend. A Billion To One: The Crowd Gets Personal reveals how retailers provide personalized commodities and services via big data. In addition, China's film market's record-breaking box-office is gradually closing the gap with Hollywood, and is preparing for a new era of globalization and digitalization.

Our views and observations are based on rigorous data analysis and candid conservations with industry leaders. As such, we would like to provide some fruit for thoughts for executives and investors who are operating in China.

Please read and enjoy!

Lawrence Chia
Deloitte China CEO

Paul Siu
Managing Partner, Clients, Industries & Market, Deloitte China