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The business world continues to develop at an alarming rate, we are delighted to be able to share a problem with you that is a real life challenge for one of our businesses – Zung Fu Company Limited.

With the invention of electric vehicles and the changing distribution channels in the market we need to evolve to stay relevant and of course profitable. Read on to find out more and be part of solving the challenges we are facing in this market to enable us to have a future position in the changing world.

The case focuses on one of the businesses in Jardines Portfolio - part of the motor sector - Zung Fu Company Limited. Let us tell you a little about them…

Zung Fu Company Limited is the exclusive retailer of Mercedes-Benz automobiles in Hong Kong and Macau, with 4 showrooms and 6 service centres. Today, Mercedes-Benz’s share of the automotive market in Hong Kong is one of the highest for Mercedes-Benz worldwide.

The current situation:

background - Jardine

ICE – Internal Combustion Engines
EQ – The future is electric and intelligent. Intelligent electric mobility - this is what the new Mercedes-Benz EQ product brand stands for. An attractive design, exceptional driving fun, high levels of suitability for everyday use and maximum safety are further attributes. EQ represents the two Mercedes-Benz brand values of "emotion and intelligence" and comprises all significant aspects of customer-oriented electric mobility.

With the rise of EQ, aftersales profitability is potentially impacted, mainly due to the fact that the profit margin per car will be less on an Electric Vehicle (EV).

Due to relatively simpler design on EQ, some businesses will come to an end gradually, such as:

Oil products: Engine oil and transmission oil, etc.
Mechanical products: No engine and related products (spark plug), No transmission, No exhaust system, No fuel tank.
Less customer-paid repair income due to 8-year warranty on HV battery.

So what would we like you to do?

Now is the time to consider Aftersales business models, to enable us to capture more customers to ensure we are in a strong position moving forward.

We would like you to identify new Aftersales services or products for Mercedes-Benz EQ customers in Hong Kong.

Inspirations

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Here are some thoughts to help kick start your thinking process:

The new opportunities could be anything as long as it helps enhance financial performance and customer experience.
Please consider potential business size with calculated estimation.
Feel free to review successful or innovative EV Aftersales products developed in other markets or other brands
Remember that Zung Fu is part of a conglomerate and therefore there may be opportunities to consider elsewhere from the Jardines Group.
Don’t forget to include any other factors that Zung Fu should pay attention to when launching any identified services or products – including any sustainability considerations

References

Expectations

We are always looking for new, fresh perspectives coming from those closest to the market. We are therefore delighted to see your ideas shared with us. The entries for the first round need to be presented as a powerpoint. We will assess those ideas using the criteria below:

Innovation: How innovative is the solution with regard to addressing the problem described in the Brief
Relevancy: How relevant does the solution respond to the specific issue(s) set out in the Brief?
Feasibility: How feasible is the solution in practice? Will the solution be sustainable over the long term?
Impact: What is the scale of potential social impact of the solution? How significant is the impact?
Clarity: How well is the solution articulated?

Our business are looking forward to selecting, mentoring and supporting those successful through to the final pitching and awards ceremony.

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Jardine

Prizes

Champion

HKD30,000 for the team
+
Internship in Zung Fu
+
HKGCC Student Associate Membership (1 year)

1^st Runner-up

HKD20,000 for the team
+
Interview for internship at one of the Jardines businesses
+
HKGCC Student Associate Membership (1 year)

2^nd Runner-up

HKD 10,000 for the team
+
Opportunity to interview for internship at one of the Jardines businesses
+
HKGCC Student Associate Membership (1 year)

About Jardine Matheson

Jardine Matheson is a diversified Asian-based group founded in China in 1832, with unsurpassed experience in the region. We comprise a broad portfolio of market-leading businesses, whose activities are closely aligned to the increasingly prosperous consumers of the Asian region.

Where we operate
We operate principally in China and Southeast Asia, where our subsidiaries and affiliates can leverage our vast experience, expertise, networks and long-standing relationships in the region. Our goal is to support our Group companies and provide them with financial and other resources, in order to create value and help our businesses achieve sustainable growth over the long term.

Our operations
Across the Group, our over 400,000 employees work in a wide range of businesses in major sectors including motor vehicles and related operations, property investment and development, food retailing, health and beauty, home furnishings, engineering and construction, transport services, restaurants, luxury hotels, financial services, heavy equipment, mining and agribusiness.

Our approach
Integrity, steadfastness, collaboration and an entrepreneurial spirit are values which inspire us. They also underpin how our businesses operate, as they provide products, services and experiences that impact the lives of many millions every day. These values also apply in our workspaces, where we strive to provide positive, safe working environments. We are also committed to supporting and improving our communities through programmes that make a difference in areas including education, mental health, the environment and more.

About HKGCC
Rules of the Competition
Selection Process
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HKGCC Business Case Competition 2022