What does it take to lead innovation and drive change in sustainability? Research shows that the ability to connect with others—especially diverse others—is the secret sauce to innovation.
In the bustling metropolis of Hong Kong, known globally as a superconnector, the intersection of innovation, technology, and sustainability is becoming increasingly vital for businesses. In an exclusive discussion, Marco Chen, an alumnus of the HKUST MBA program and Vice President at Fung Investments, shares his perspective on the future of business through the lens of his work at the Fung Group.
Background of Marco
Marco is deeply immersed in the thematic of Fashion Tech at Fung Investments, the family office of the Fung Group. His focus lies in working on initiatives and collaborating with startups, venture capital, academia and real estate. He also has a dual role as the group chairman’s assistant. Before joining Fung Investments, he served as General Manager at the Explorium innovation hub, where he cultivated partnerships with startups to co-create solutions and support corporates in accelerating their learning and innovation processes.
With a robust background in the intelligence industry, Marco has published insights for governments and businesses at a think tank that has since merged to become the HKUST Li & Fung Supply Chain Institute, aimed at advancing research and practices in global supply chain management innovation. His career spans various functional roles in retail and consulting, with professional experience in the United States, Mainland China, Hong Kong, and Southeast Asia, serving prominent brands like Nike, Puma, and Toys’R’Us.
Why He Chose HKUST
"Originally from the United States, I wanted an academic anchor in a different place, particularly in Asia, which is growing tremendously. By approximately 2030, 50% of the world's consumption will occur in Asia, with powerhouses like China and India leading the way. Understanding how these consumers want to be engaged and what type of supply chain is needed to support them is crucial."
He emphasizes, "Hong Kong is a special place with a vibrant community, and HKUST's young program offers incredible opportunities. The success of the alumni and their contributions to current students made it clear to me that this was the right choice. I was thrilled to be accepted."
The Role of Innovation and Technology
How do you see the role of innovation and technology shaping the future of business here, especially through the initiatives at the Fung Group?
Marco responds with enthusiasm. "A little background on the Fung Group: we are a major global orchestrator of supply chain management, with operations in over 40 economies. We connect the entire value chain of fashionable consumer goods, from raw materials and production to physical retail, e-commerce, and consumer engagement."
He emphasizes, "By definition, our role is to be a superconnector, which directly influences our future strategies and investment decisions." He notes a significant statistic: "The fashion goods production value chain generates about 10% of all global carbon emissions. This presents numerous opportunities for improvement."
Marco observes a notable shift in industry sentiment. "We're witnessing a change from viewing sustainability as a cost to recognizing it as a competitive advantage. Technology and innovation are pivotal in making this industry more eco-friendly and reducing carbon footprints."
He expresses firm belief in Hong Kong's potential, stating, "I fully agree that Hong Kong is a superconnector and a super value adder. We foresee it becoming a global ESG hub, helping the industry reduce carbon emissions."
The Significance of Being a Superconnector
"How do you perceive the significance of the superconnector role in today's business landscape? What advice would you give MBA students to cultivate this skill?"
Marco reflects thoughtfully, "I'm truly humbled by this branding because, during my MBA program, I never set out to become a superconnector. I simply kept meeting incredibly smart and interesting people. My curiosity drove me to connect and engage with them, leading to meaningful conversations."
He shares a compelling example of his connector role during one project at Fung Investments: "Within just three months, I worked with people from diverse backgrounds—mainland Chinese government officials, Chairman’s and CEOs, catwalk supermodels, professors from MIT, Tsinghua University, and HKUST, as well as production crews, investors, venture capitalists, and numerous startups. The key was being able to have conversations with these varied groups and finding a unifying point to collaborate effectively."
"This ability to understand and connect with diverse individuals, and to bring out the value in our collective efforts, is what I believe a superconnector should strive to do.” To those looking to cultivate their own superconnector skills, he offers two key pieces of advice. "First, show empathy in your conversations. Actively listen to understand where the other person is coming from. This appreciation of their unique perspective does wonders for relationship building."
Second, he adds, "seek opportunities to meet people from diverse backgrounds. This practice broadens your understanding and helps you see the same topic from different angles, fostering connections between various communities."
Marco underscores the importance of empathy in the current business climate. "Imagine you're a startup; you must listen to your market to find where your product fits. If you work in B2B or B2C, showing empathy to your customers is crucial for uncovering pain points and enhancing your offerings."
"If you're in a management board meeting," he advises, "actively listen to grasp the diverse perspectives of stakeholders. This understanding helps you navigate complex discussions and effectively communicate your ideas."
Leadership and Influence
Diving deeper into the qualities of effective leadership, Marco states, "There are many different leadership qualities, and while I can't prioritize them, I want to highlight one: the ability to influence others to get things done. This quality is crucial because it allows you to operate at scale and accomplish more in a shorter amount of time."
He elaborates, "To build upon the skill of influencing people, I believe there are two fundamental building blocks. The first is understanding yourself. Knowing your strengths, areas for improvement, motivators, and values is essential. When you are committed to your values, others can sense that, and it becomes contagious. If you believe in what you stand for, you can inspire others to share in those values."
"The second component of influencing," he continues, "is having a broad knowledge base. You need to be informed about current events, various strategies, and concepts, as well as resource leveraging processes. This knowledge empowers you to have meaningful discussions and to connect with people on multiple levels."
The Power of Connection Through the HKUST MBA Program
Marco emphasizes the significance of the HKUST MBA program, stating, "It truly exemplifies the themes of connection and collaboration. By fostering a diverse array of students, it enriches their understanding of global contexts." He highlights the role of the program's esteemed faculty, noting, "These professors provide essential knowledge that keeps students informed about current events and strategic processes, which is critical for navigating today's complex business landscape."
He further explains, "Extracurricular activities are vital as they allow students to explore their motivations and build camaraderie through challenges like case competitions and physically demanding events." Marco believes that these experiences enhance personal growth and cultivate the resilience and teamwork essential for effective leadership.
"Participating in various case study competitions allows students to experiment with different strategies in a safe environment," he adds. "It's a place where making mistakes is part of the learning process."
Marco also shares his unique experiences: "I participated in extreme events like the MBA desert races and ice marathons, which not only tested my physical limits but also forged lifelong friendships with my classmates. These experiences foster a sense of teamwork and survival that extends beyond academics."
He highlights the value of study tours, mentioning, "I chose to go to Israel, known as the startup nation, to learn firsthand about the innovative techniques that drive successful startups. Bringing these insights back to my company has been invaluable.
Exciting Projects at the Fung Group
Can you share a particularly exciting project your team is working on, especially regarding collaborations with startups and institutions?
Marco eagerly shares, "One example is a project I’ve been dedicated to for the past 18 months: our Fashion Tech Center in Shanghai, which just launched this year. Located in Li Fung Plaza, this campus consists of 13 buildings and serves as a curator and convener of fashion technology in the Yangtze River Delta area."
"This platform allows us to connect with startups, academic institutions, governments, and other corporates," he explains. "Together, we strive toward a singular goal: to advance the fashionable consumer goods industry quickly and sustainably."
As the conversation unfolds, it becomes clear that the synergy of innovation, collaboration, and sustainability is not just a vision for the future but a tangible reality in Hong Kong's dynamic business environment.
Integrating AI in Sustainability Efforts
As the discussion turns to the role of technology, AI is becoming increasingly important. How is Fung Investments integrating new practices into its projects, and why is this a priority for you?
Marco responds, "Fung Group operates in the global supply chain, and this is an area where sustainability can be improved. So it's our priority in terms of carbon reduction and efforts toward sustainability. We believe that technology is going to help us get there, but it's also about ethical practices and the implementation of the right governance."
He continues, "On the technology front, AI is transformative. We've been implementing various AI solutions internally to help optimize efficiencies, using AI algorithms to better manage our partners and communicate with the outside world. We've even looked at AI for data analytics, forecasting, and planning."
Marco adds, "Further upstream, we’ve implemented AI to assist our designers in creating more creatively and sustainably. AI is definitely an important part of our strategy, and we’re constantly on the lookout for new partners and technologies to work with. From an investment perspective, we’re definitely looking at companies that can leverage AI to enhance their scalability and business models. So, AI is a crucial enabler for us."
Closing Thoughts
To wrap up the conversation on a lighter note, "If you could have dinner with any innovator or entrepreneur, past or present, who would it be and why?"
Marco smiles and replies, "I had a long thought about this. Originally, I wanted to choose Jensen Huang, the CEO of NVIDIA. But since he’s recently become an alumni of HKUST, he feels a bit accessible now! So, I think I’ll go with Thomas Edison, the prolific American inventor from the 1800s."
He continues, "Edison had over 1,000 patents, and his inventions form the backbone of our modern industrial society. I’m fascinated not just by what he invented, but how he approached invention. He utilized principles of organizational science to work with large teams and he helped to turn innovation more into a process."
Marco adds, "He emphasized the commercialization of inventions too, which is super important in the field of innovation. If you can’t find the right market for your invention, it won't really serve anyone."
He shares one of Edison's famous quotes: "When you have exhausted all possibilities, just remember that you haven't." Marco reflects, "This concept resonates with me because, whether you're starting a new company, seeking a promotion, or changing careers, you're bound to face challenges. Edison's wisdom reminds us to persevere and keep chasing our dreams, no matter the obstacles!"
With a chuckle, he concludes, "So, dinner with Edison it is! I can only imagine the ideas we’d brainstorm over a meal!"
Behind the Scenes Dialogue
Interviewer: "As we talk about the idea of being a superconnector, how do you see that connecting to the role of adding value in business?"
Marco: " For me, being a superconnector is all about creating value from those connections. Once you establish a network, it's crucial to figure out how to make it meaningful for everyone involved."
He shares, "At HKUST, I love hosting events that bring the alumni community together. It's amazing to see how diverse perspectives can spark innovative ideas. You never know what might come from a casual conversation!"
Marco recalls the launch of the HKUST Li and Fung Supply Chain Institute, saying, "We invited speakers from various backgrounds to share their insights on supply chain management. It was all about offering the audience something valuable and actionable."
He concludes, "In the HKUST MBA program, this concept really shines. We connect with top CEOs and global leaders who share their experiences, helping us learn and grow. It’s all about building those relationships and using them to drive success."
