Pico Far East to adjust global business markets

Event marketing company Pico Far East (0752) has revealed plans of readjustment in its global markets for further business expansion, chairman Lawrence Chia Song-huat said on Wednesday 

Currently, around 60 percent of its operations come from mainland China, while around 15 percent come from the US and the Middle East respectively. It aspires to increase the proportion of its business in the US, Middle East and Southeast Asia to 20 percent each and reduce that in mainland China to 40 percent in the coming three years, according to Chia.   

Chia emphasized that the change in proportion does not necessarily mean that the mainland market will shrink but reflects the enlarged scale of the company’s global business. 

Pico plans to maintain sales and increase profit within the next two years for its mainland business rather than focusing on maximization. 

Besides, automotive-related revenue accounts for 25 percent of total revenue in mainland China. Chia noted that the market is facing intense price competition, and the group is committed to avoiding unprofitable activities. 

The company aims to further expand its US market within the future, which is currently its second largest after the mainland. It is actively targeting potential business partners due to clear data transparency in the country. 

He acknowledged challenges in expanding in the Southeast Asian region, citing the lack of cohesion among the countries in the area as a potential barrier. The company plans to increase marketing and branding campaigns within the region, in addition to exhibitions and conventions. 

Regarding the Middle East, Chia mentioned that Pico has developed its business in Saudi Arabia in recent years, but difficulties in employment, visa processes and a lack of data transparency have blocked potential further expansion. 

Pico recorded a stronger business performance in the second half of the year, with further improvements expected in the coming year, Chia said.

The company hopes to target a steady increase of 10 to 20 percent in revenue generated from exhibitions and conventions, and an average of 20 percent increase in brand engagement. 

Chia notes limited brand engagement operations, which are highly influenced by consumer confidence in the US due to harsh marketing promotion competition.