Local companies represented by GoerTek Inc have been exploring the market for many years.

"GoerTekkeeps pace with new trends in the world. It owns many world-leading VR technologies," Chu said.

Chu added that GoerTek has significant potential because it has set clear goals, made detailed plans, attracted many talented professionals and created leading technologies.

GoerTek has established partnerships with Stanford University, Beihang University and Changchun Institute of Optics, Fine Mechanics and Physics at the Chinese Academy of Sciences to strengthen its position in developing core technologies and attracting talents.

GoerTek is the exclusive supplier major international businesses in this sector. The company will deliver three million VR headsets to global markets in 2016.

The company also plans to boost sales of its homebrand products and to supply 30 million units of such products in 2020, which will account for 40 percent of global demand.

In 2024, GoerTek expects its sales revenues to exceed 100 billion yuan ($14.77 billion).

"The industry is experiencing fierce competition. Companies who move faster may become the market leader, while the rest might even lose their chance to compete," said Chu. 

Xin Lizhi, general manager of Shandong Fire Fox Interactive Entertainment Co, a virtual reality content developer in Weifang, said that some companies focus on developing VR hardware instead of content.

"We will focus on content development and we believe there is huge development potential," Xin said."The development zone has a strong VR industrial development foundation and the local government is providing strong support. I think we are in the right industry at the right time."

Weifang, which intends to become a global VR technology city, has set detailed plans to support its long-term mission.

Local administrative departments are required to provide all necessary help to support GoerTek.

A view of Weifang Software Park.

"We will put more resources into the VR industry to provide more opportunities for companies. We will also pay more attention to attracting new businesses along the VR industrial chain to support GoerTek's growth," said Dong Yulun, director of the Weifang Software Innovation and Enterprises Service Center.

The Weifang government considers the expansion of leading companies to be the key to accelerating the construction of its VR technology city. GoerTek has been encouraged to take more responsibility in developing a VR technology platform, support the national VR technology development strategy and strengthen independent development capacity. The company will also take the lead in establishing a VR industrial research institute and training center.

Local authorities have realized that a premium business environment is crucial in supporting VR industry development. Led by GoerTek, the Weifang VR Industry Development Alliance and Shandong VR Industry Development Alliance have been established to optimize the market's local ecosystem.