After making his first pot of gold in the early 2010s, Clarence Ling Chun-kit invested in a series of internet-based startups. Some of them have become bellwethers today, such as Lalamove, a Hong Kong-based technology company that provides delivery services in cities across Asia and Latin America, and DayDayCook, a food and lifestyle brand.
Riding on the global digital boom in 2014, Ling and his two partners set up Ztore — an e-commerce company aimed at creating new business models for Hong Kong’s grocery shopping market. In August, Television Broadcasts and Shaw Brothers said they would invest HK$200 million (US$25.7 million) to acquire about 75 percent of Ztore’s shares.
Ling is now setting his sights on the Guangdong-Hong Kong-Macao Greater Bay Area and encouraging more young people in Hong Kong to be proactive in seeking business opportunities in the region.
He recalls his trials and tribulations, and shares his insights into the business prospects for Hong Kong as well as the entire Greater Bay Area. He speaks to Kathy Zhang.
Clarence Ling says Hong Kong needs to embrace the internet era. (CALVIN NG / CHINA DAILY)
You co-founded an e-commerce startup in 2015. Before that, you were already an investor. What inspired you to start your own business in Hong Kong?
After graduating from university in the United States in 2005, I went into business in 2006. I started helping Chinese State-owned enterprises and private businesses expand overseas in 2009, basically looking at investment opportunities in Europe, the US and Southeast Asia. In 2013, I gave investment advice to Wanda when they made their first acquisition in the United Kingdom, that is, the company’s 320 million pounds (US$442 million) acquisition of British yacht maker Sunseeker.
After making my first bucket of gold, I started investing in companies, including Lalamove and DayDayCook in Hong Kong. At the end of 2014, I started talking to my two co-founders of Ztore.
What inspired me was I felt Hong Kong needed a change. We were very far behind the rest of the world, especially the Chinese mainland, in terms of internet businesses and development.
Starting Ztore was a way to bring about that change, encouraging Hong Kong people to understand more about the internet business.
It was about time to do this and it was a huge challenge because there was not much an ecosystem in Hong Kong for startups. Everything we had to build from scratch. From warehouse operations to delivery services, there was really no one who had ever done it before (in Hong Kong).
How did the people around you respond to the idea?
A lot of my friends never thought we would succeed.
What is it like being an entrepreneur?
I would say there’s a lot of sacrifice you have to make being an entrepreneur, be it time with your family or friends.
My wife and kids have already given up on me (he chuckles). They’ve now got used to, for example, not having me home for dinner most nights.
Which cities in the Greater Bay Area do you think hold the most promise for would-be entrepreneurs?
It depends on which industry you are interested in. For example, in terms of new media or social media related businesses, I think it’s probably better to start in Guangzhou. For businesses related to the creative industry, design, and intellectual property, probably Foshan would be a good choice. In terms of technology-related businesses, obviously, it would be Shenzhen.
You need to do more research on which types of talent there are in different cities before entering the market.
There are also the differences between Hong Kong and the mainland in terms of culture, way of life and the way of doing things. For example, in the property market, the regulations are very different. Hong Kong and the mainland have totally different systems, different taxes.
It might be easier for Hong Kong people to understand the UK’s property or tax systems because, over the years, we’ve followed those kinds of regulations and it’s easier for us to understand.
In terms of culture, I have talked to many Hong Kong teenagers and encouraged them to spend some time on the mainland and try to get some exposure to the way of life there.
But I understand if you don’t know anyone, it’s quite hard to make the first step going there.
My first time going to Beijing as a grown-up was in 2006. I was very scared.
It is about whether you are willing to get out of your own comfort zone or not.
Why is that?
I grew up in Hong Kong and had spent eight years studying in the US. I would go back to Zhongshan (another Greater Bay Area city in Guangdong province) with my grandma, but Zhongshan is very close (to Hong Kong). When it came to going to Beijing, the political center, the capital, to me as a 22-year-old, it was not that scary, but you would hear some people making fun and trying to trick you and scare you about what might happen.
The trip to Beijing became one of the most important turning points in my life. It was in 2006. After that, I started learning Mandarin. As I said in 2009, I started helping mainland companies expand overseas. So, in business settings, it’s always English and Mandarin. Without going to Beijing in 2006, I wouldn’t be able to help mainland companies seek opportunities overseas.
That’s why I encourage Hong Kong young people to go and see for themselves on the mainland. And as chairman of the Y. Elites Association, I really hope that, through us, we could help more Hong Kong young people to take their first step.
You spent eight years studying in the US. What does this experience mean to you?
Critical thinking and international perspective. I made a lot of friends from all over the world. And the US also taught me about nationalism.
The first national anthem that I learned was the US national anthem. That was in 1998 when I was in high school. I represented my school in a singing group at the NBA games. In the center of the court, all the lights went off and the spotlight was on us. And we sang the US national anthem. That’s sensational.
And I always think why the US national anthem was the first national anthem song I learned. I started thinking about myself. Going to the US was also another important turning point in my life.
You come from a privileged background. Do you mind being labeled as the third generation of a wealthy family? To what extent do you think the background makes who you are today?
It’s funny. I don’t mind stereotypes. But most people who know me know that what I’ve achieved today is not only because of my family.
Back in 2009, I helped State-owned companies and private companies on the mainland expand overseas and also look at investment opportunities. That’s all on my own.
But, obviously, what my family gives me is initial trust with some potential clients, investors and partners. I still have to go out to meet people, cold call or cold email people.
At the end of the day, it is up to you how you want to live your life.
How did you cope with people’s stereotypes?
You don’t really have to mind them, right? At the end of the day, actions are better than 1,000 words.
The pandemic has affected people’s routines and business travel has largely been put on hold. Has it changed your life too?
Despite the pandemic, I managed to travel to the mainland a couple of times in the past year — to Shenzhen, Guangzhou and Foshan — for investment purposes and for my own new business.
Pre-pandemic, it was a day trip to Shenzhen or Guangzhou. Now due to the quarantine requirements, people wouldn’t just stay like two or three days there. So, on each visit, I spent at least one month there.
I had never stayed on the mainland for more than a month before the pandemic, usually five days maximum. In that case, you never really got to know the place you visited. And because of COVID-19, I’ve really got to know a lot more and started my company (on the mainland).
How would you see your own role with regard to the Greater Bay Area in the next five years?
I would say, maybe, I would be a super-connector. I would facilitate different joint ventures and help different corporations, startups launch in the Greater Bay Area.
What is your vision for the future of the Greater Bay Area?
I would really hope that through Hong Kong, the entire Greater Bay Area will become more and more international, more open to foreign companies and foreign entrepreneurs.
Clarence Ling Chun-kit
Alma mater:
Tepper School of Business, Carnegie Mellon University, the United States
Motto:
Money can never be your top priority.
Social activities:
Committee member of the All-China Youth Federation
Chairman of the Y.Elites Association
Member of Zhongshan Committee, the Chinese People’s Political
Consultative Conference
This interview has been edited and condensed for clarity.
