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Any industry related to China's urbanization process has potential for growth. These include transportation, clean energy, safety and security.

Apart from partnering with more than 100 research institutes and universities within China to push its innovative ability, the company will install automated production machines and adopt the latest environmentally friendly technologies to produce both clothing and materials.

Ant Financial's effort represents a genuine breakthrough in business know-how and putting the ideal of inclusive finance into practice, said Xu Yuan, a professor at the National School of Development at Peking University.

Apart from the European R&D center, the home appliance giant has set up a research institute in Silicon Valley in the United States, and R&D centers in Shenzhen, Chengdu, Xi'an, Shanghai, Beijing and Guangzhou. It has teamed up with tech heavyweights such as Google Inc, Amazon.com Inc and Baidu Inc in the field of AI.

Ant Financial, Alibaba's financial arm, has even brought its technological prowess and business model to India, helping to incubate the indigenous digital wallet Paytm, which draws experience from Alipay, its Chinese equivalent.