Climate change is accelerating. As the need to avoid catastrophic temperature rises becomes ever more urgent, everyone on the planet – from individuals to corporations – need to transform our behaviour. Transforming corporates requires industries as a whole to move together. This is creating big challenges for businesses, however, as they seek innovative yet viable ways to be more sustainable.
Happily, it seems there is no shortage of fresh ideas among the younger generation in Hong Kong, as the finalists in the Chamber’s first Business Case Competition all demonstrated. Their innovative and practical proposals on sustainability focused on addressing some of the biggest sustainability challenges facing certain industries.
The judges – representatives from the four corporate sponsors and the Chamber – didn’t pull any punches questioning the teams during their presentations on the technicalities of their projects. The students were all extremely well prepared and confident in explaining their ideas, which made it all the more difficult for the judges to choose the winners after the presentations from the 12 final teams.
Chamber CEO Shirley Yuen, who was a judge, said HKGCC is always eager to devote time and resources to help local students learn more about the business world and nurture their ideas and creativity. “Business is not exclusive,” she said. “It is very important that the business sector has a stake in the local community, and works for society as a whole.”
The 960 students who applied represented 10 different institutions in Hong Kong and Macao and more than 25 different nationalities. “We are very encouraged that we attracted almost 1,000 student entries to the first edition of this competition organized by HKGCC,” Yuen added.
Months of preparation
The Business Case Competition consisted of four tracks, each run by a corporate sponsor: CLP Power Hong Kong Limited, Great Eagle Group, LVMH Fashion Group and Sino Group. After a multi-stage process of online voting and mentoring, three teams for each track made it to the final.
The projects created by the sponsor companies were all real-life conundrums, giving the students the opportunity to test their sustainability ideas in a professional context.
From the final pitches, it was clear the teams had done their homework on everything from technology to market needs and financial costings. The students also had to distill their complex proposals into a very short five-minute timeslot. Each of the pitches was followed by a Q&A session where they were grilled on the details of their proposals.
As the judges retired to make their decisions, the students had the opportunity to learn from experts about the path to start-up success at our Entrepreneur Forum (see sidebar: The Start-up Experience).
“Selecting the winners was by no means easy,” said Yuen. “But we were able to come to a decision on each of the four tracks to award the top prize to the proposal that best fulfilled the criteria of being relevant, feasible and innovative.”
Winning projects
“Fashion is a mystery,” Bring Green stated in their pitch. “Customers don’t know anything about the garment-making process.” For the LVMH project, Journey to Green Fashion, the winning team looked at Kenzo, a brand owned by LVMH. Bring Green’s proposal used blockchain to give traceability to the supply chain, which increases consumer trust and allows the brand to back up their sustainability claims. They also proposed an after-care and upcycling scheme to extend the life of the products.
“It is fantastic to see the dynamism and insights that the students have to share with us,” said Damien Vernet from LVMH, as he awarded the prizes. “There is clearly a bright future for the city and for luxury retail. All three solutions were very strong and very realistic, which was one of the key criteria.”
Vernet added that that the judges had particularly liked Bring Green’s idea of using blockchain, which is likely to be part of the future for the supply chain.
“We enjoyed the opportunity to work together towards a common goal,” said Coco Ngor from Bring Green. “The mentorship stage was also very useful as it helped us scale down our ideas.”
Great Eagle’s theme, Future Mixed-Use of Spaces in Hong Kong, gave the winning team, HKU x CUHK, the chance to consider the city’s ageing population over the next 20 years.
For their project, the team saw that changing demographics would create problems, but also drive niche demand for high-end retirement homes. “When we did our research, we found that there was a lot of data available in some cities like Vancouver, so we able to make use of that information,” they said.
Their project would build premium accommodation using smart technology and with access to cutting-edge medical services, aimed at younger retired people as well as those aged over 65.
“HKU x CUHK delivered a thoughtful presentation to guide the judges on their innovative 2039 project,” said Carmen Ng, representing Great Eagle. She added that the judges had been impressed by the extensive research carried out by all the finalists.
Ng also said that the structure of the competition had been beneficial to both sides: “The face-to-face mentoring process adds value to the connection between the mentors and participants, and we highly recommend this process.”
Looking at Sino’s project theme, Shaping a Sustainable Future for the Hospitality Industry, Team Xire noted that the demands of hotel guests have evolved as technology enables more personalized services.
Clarisse Cheng from Xire explained that their team was interested in the hospitality sector because it offers a lot of flexibility, and because it was an area that they had not yet explored in their business studies course.
“Our teammate got the chance to visit the Gold Coast hotel to see how a five-star hotel operates,” she added. This helped refine their ideas to make hotel stays more personal for the guest – but also flexible for the hotel – including projected wallpaper and digital photo frames which could be used for artworks, but also guests’ own photos for anniversaries and other celebrations.
The judging panel noted Xire’s strong vision and clear strategies on how hotels can improve their engagement with guests as well as strengthen sustainability measures.
“Xire’s digital theme-changing device and the AR Education Room, for example, are quite impressive and complement the hotel’s business model. Their presentation showed a detail benchmarking exercise with cost analysis, which indicates the team’s strong analytical thinking and enthusiasm for this project.”
The judges also commended the passion, dedication and creativity of the other participants. “We really appreciate the efforts they have put in during the preparation. We can see that many of them have done thorough research on our hospitality business, not only from our website, but also by arranging site visits to our various hotels.”
The theme for CLP was Decarbonise Transportation in our City. Team Alba noted that there are more school buses than minibuses in Hong Kong, and problems with the current school bus system include high bid prices and pollution.
In their solution, Alba suggested that CLP should provide free charging to schools that purchased electric buses. Positive impacts would include reduced pollution, healthier society and improved school performances from the children.
The team members said that the project had involved a lot of late nights working after class on their proposals. Team Alba, like many of the other finalists, said that they particularly appreciated the mentoring stage of the competition.
“We enjoyed the interaction with the people from CLP,” said John Wong from Alba. “It was really fun, but we also gained a lot of insight and learned about the social impact.”
Joseph Law from CLP’s judging team said that Alba stood out by targeting a unique sector, school buses, that is not typically an area of focus. “It is encouraging to see they have developed detailed analyses to support their well thought-out plan, coupled with an excellent presentation. The team created a win-win proposal for the stakeholders involved.”
He added the other two final teams were very impressive with workable solutions that provided different perspectives on the topic.
“Overall the challenge was very refreshing,” Law said. “It was commendable to see the development of each of the groups’ proposals over a very short period. We hope they would continue to generate interest from the next generation on different ways to “Decarbonize Hong Kong.”
The Start-up Experience: Success, Failure and Opportunities
Speakers share their stories of dreams, disasters and opportunities at Entrepreneur Forum
The Chamber’s annual Entrepreneur Forum took place during the finals of the Business Case Competition on 22 November. While the competition judges deliberated the pitches, four expert speakers shared their insights on the world of entrepreneurship with the students.
Andy Ann, Founder and CEO of NDN Group, has been an entrepreneur for almost 20 years and has experienced many downs along the way as well as successes. He explained that the idea of following your passion is not enough to deliver success. “Passion is not profit,” he said – innovators must also have a realistic business model.
Ann launched his first business, digital displays in bars, in 2002. While this was initially successful, the outbreak of SARS the following year spelled disaster. Another venture – a wedding platform – came to an unhappy end for Ann when the company was diluted by an investor. But his advice is to “fail forward” and to continue to learn from your experiences.
On the other hand, Klarity, a social media analysis company, was among his success stories. It received investment from 500 Startups, and was acquired by global company Meltwater in 2017.
“It is never your competitors that are killing your business,” he said. “We were acquired by a competitor, and we also work with competitors as partners.”
Teaming up with competitors can open new markets and lead to large increases in sales, so start-ups shouldn’t view their rivals as the enemy.
Ann said that while entrepreneurs need to be prepared to deal with failure, they should also not get too confident when things are going well. “When you reach the heights, be humble and keep learning,” he said. “Education never ends.”
Those who launch their own businesses can expect a rollercoaster journey. “Being an entrepreneur is not a job,” Ann said. “You are putting together things to make your dreams come true.”
Bonnie Cheung, Venture Partner of 500 Startups, shared her insights from the other end of the spectrum as an investor in start-ups. She said the first thing for start-ups is to do their homework.
One company, Hooked, had the idea creating a platform for very short stories. When the founders came to seek funding, they had already researched different formats and were able to demonstrate that their text-message-style delivery had a finish rate of 80% to 90%.
“We want this sort of factual back-up; we want to know the niche audience you can reach,” Cheung said.
A bright idea is only the beginning, she added, and entrepreneurs need to show that they have the discipline to reach their milestones.
“Even if your hypothesis is correct, what are you doing to follow up?” she said. “You need to work relentlessly towards your target, and hit the target. You need to show your investors that you can execute it.”
The final key thing is: “people, people, people.” Cheung explained that one of the main reasons that start-ups fail is founders falling out. Entrepreneurs need to be able to deal with the different personalities and problems of their employees. It is also important in a start-up that there is a leader who can inspire the team.
“Your staff have to believe in you and your charisma. Or else you need to hire someone who has that charisma,” she said.
The development of the Greater Bay Area (GBA) is presenting many new opportunities for Hong Kong entrepreneurs and potential for collaboration across various industries. Professor Witman Hung, Principal Liaison Officer for Hong Kong Shenzhen Qianhai Authority, gave the example of the drone-maker DJI, which moved to Shenzhen because it was the best location to access all the suppliers for manufacturing.
But Hung also pointed out that there are a number of challenges for innovators in the region. One issue is that while there is plenty of innovation taking place at universities, the link to industry is poor.
“A lot of professors have no connections to market. They invent something, but they have no idea whether there is a market for the product,” he said. “At the same time, traditional industries in the Pearl River Delta have manufacturing excellence and channels to export, but they don’t have the innovative capabilities.”
So there is a need for a bridge between these two different sectors, which could be provided by Hong Kong businesses if they are able to develop links with both sides.
Many people reference unicorns when they talk about start-ups, Hung noted. However, the failure rate of start-ups is extremely high. He suggested that, in the unique environment of the GBA, we should instead talk about zebras. The black and white stripes represent the old and new economies, which can work together towards the same goal.
“Most importantly, a zebra is a real animal,” Hung said. “Who here has ever seen a unicorn?”
Nicholas Ho, Deputy Managing Director of Ho & Partners, is a second-generation architect working for his family firm, established 40 years ago. So why was he speaking at an entrepreneur forum?
Ho explained that the firm is diversifying its business by investing in start-ups. It focuses on smart city and property technology start-ups, which are a natural fit with the company’s traditional areas of architecture, engineering and development consultancy.
He echoed Cheung’s comments about demonstrating that there is a market for a product. While Ho may not be an expert in the start-ups’ technology, he and his partners do understand where there are gaps in the market.
“A lot of entrepreneurs that we meet are pushing products that the market doesn’t need,” he explained. But for entrepreneurs with viable ideas: “We help them open new markets, and help them become market ready.”
Speaking more generally, Ho noted that a key challenge holding back the development of the start-up scene in Hong Kong is “parents,” and a culture that encourages people to get a steady professional job. He advised young people to learn more about the world of start-ups before following the path themselves.
“Not everyone is made to be an entrepreneur,” he said. “But I would strongly encourage you to get experience at a start-up, because you can learn a lot in a short period of time.”
Business Case Runners-up
The judges said they had been impressed by the overall standard of entries, and the eight runners-up were especially commended for their innovative thinking and well-researched projects.
CLP: Decarbonise Transportation in our City
Occam's Razor noted that Hong Kong lacks competitive charging infrastructure for electric vehicles. Their project would create a network using wifi and RFID to charge vehicles as they travelled through certain tunnels in the city.
Electric cars are rare in Hong Kong, partly because of the cost. The project from Polaris, CUHK aimed to change this through measures including a merit system for electric vehicle users, improved charging system and public education.
LVMH: Journey to Green Fashion
Green Vogue pointed out that millennials are interested in sustainability, so this will become an increasingly important consideration for luxury brands. They aimed to improve packaging and transport to reduce the environmental impact.
Essential attributes for prestige brands are innovation, craft and heritage. HKCOWs want to add "sustainable" to this list. To help change the mindset, their Eco Tag project will provide transparent information about sourcing and manufacturing.
Great Eagle: Future Mixed-Use of Spaces in Hong Kong
@LMC created a high-tech blueprint for the New Territories town of Kwu Tong for 2039. The urban infrastructure would include serviced apartments for the elderly and for younger workers at the Lok Ma Chau Loop Science Park.
With a focus on gender equality and an ageing population, Alpine aim to build a net-zero mixed-use development including co-working spaces, care facilities for children and the elderly, shopping malls and recycling facilities.
Sino: Shaping a Sustainable Future for Hospitality Industry
Sinergy aimed to use innovation to provide customized service and to help hotels use sustainability to boost their brand image. Measures included an AR photo booth to allow guests to participate in the hotel's green initiatives.
Team SURVIVORS used gaming to offer a unique experience designed to appeal to families and young guests. The games can increase awareness of the hotel's sustainability efforts and provide a channel for communication.