// WINTER 2011

6

5

1 3

4

6

2

8

Pico Far East Holdings 2011 Annual Results Contracts Win at Yeosu Expo

IN THIS ISSUE... 1// Economic Development Board Celebrates 50th Anniversary with Gala Dinner and SingaPOP! Concert 2// Flagship Franck Muller Store Makes Timely Appearance in Beijing 3// Ferrari and Maserati’s Shanghai Showroom 4// Glitterati Declare F1 Lifestyle Pavilion a Winner 5// Ford Escape 2013 Launch 6// Huawei Enterprise Launch Network Showroom 7// Hong Kong Tourism Board Stages Novel London Event 8// ITMA 2011 9// World Premiere of Chevrolet Colorado 10// Regal UAE National Olympic Committee Office Promotes Dubai 11// 11th World Chinese Entrepreneur Convention 12// Garnier Media Launch 13// Pico Quarterly Customer Satisfaction Survey 14// Pico is Voted one of 2011’s Top Three Best Event Companies in Asia 15// Contract Win at Expo 2012 Yeosu Korea

Imagemaker

7

9

10 11 12

8

IMAGEMAKER // WINTER 2011

Pico Far East Holdings Limited Announced Record High Turnover and Profit in FY 2011 Annual Results

2

Pico Far East Holdings Limited (“Pico” or the “Group”, SEHK: 0752),

announced its annual results for the 12 months ended 31 October

2011 (the “year”) on 31 January 2012. During the year, Pico delivered

a robust and resilient performance in spite of testing conditions in

the global economy. The Group’s turnover reached HK$3,509 million

(2010: HK$3,075 million), representing an increase of 14.1% compared

with the previous year. Profit attributable to owners of the Company

increased by 29.2% to HK$248 million (2010: HK$192 million).

The Board of Directors has recommended a final dividend of HK4.0 cents

per ordinary share (2010: HK4.0 cents) and a special dividend of HK4.0

cents (2010: HK1.5 cents) per ordinary shares. Taken together with the

interim dividend of HK4.0 cents per ordinary share (2010: HK3.5 cents

per ordinary share), the total dividend for the year amounts to HK12.0

cents per ordinary share (2010: HK9.0 cents per ordinary share).

Mr. Lawrence Chia, Chairman of Pico, said, “The improvements in our

results are due to our entrepreneurial and creative culture that enables

our people to pursue initiatives swiftly and develop them into business

opportunities and revenue. The strong results we have achieved this year

would not have been possible without the patronage of our clients and

dedication of our staff.”

Chairman Chia continued, “The Group is in a better position now

than at any time since its inception. Our core competencies enhance

Contracts Win at Expo 2012 Yeosu Korea Shortly after the Pico Group announced our successful business results

at the beginning of 2012, the Group announced further wins of more

contracts at Expo 2012 Yeosu Korea (‘Yeosu Expo’): namely the UN

Joint Pavilion, the Singapore Pavilion, the Cambodia Pavilion and the Sri

Lanka Pavilion.

Under the UN Joint Pavilion contract, Pico will be responsible for providing

a comprehensive range of services for the 1,200 square metre Pavilion,

including design, interior decoration, exhibition, AV multimedia and

operations.

Appointed by the Ministry of the Environment and Water Resources

in Singapore, Pico will lead a multidisciplinary team which will provide

turnkey services to conceptualise, design, create and operate the

Singapore Pavilion.

The Cambodia Pavilion will be located in the Pacific Ocean Zone of the

Yeosu Expo Site, and Pico has been appointed to perform the conceptual

design and construction work.

Under the Sri Lanka Pavilion contract, Pico will be in charge of bringing

the vision for the Country Pavilion to life, including project management

and fabrication work.

our brand name and give the Group a strong competitive edge and a

dominant presence in the industry. Looking ahead, China is still a very

important market in Asia for the Group. Besides investing and improving

our competitiveness in China, we will continue to expand our business

into emerging markets like India and most recently, Brazil. To remain

competitive and profitable we have and will continue to innovate our

services. We also look at ways of extending a broader range of services

to existing customers by leveraging our extensive network.”

Please click below link to view details of the announcement:

English: http://www.pico.com/investor-zone/company-announcement/

Chinese: http://www.pico.com/cn/investor-zone/company-announcement/

Prior to these contracts, the Group was also awarded a turnkey contract

to design and create the Jeonbuk Pavilion located in the Host Country’s

Local Government Pavilion, as well as exhibition design and construction

for the Yeosu Expo Marine Life Theme Pavilion (Aquarium).

Pico’s ‘World Expo expertise’ has been called upon for over 30 years

now - since the 1980s, Pico has created more that 60 pavilions for eight

world expos.

This year, Expo 2012 Yeosu Korea, with the theme ‘The Living Ocean

and Coast’, will attract an expected eight million visitors. More than one

hundred countries are participating, and will be showcasing mankind’s

diverse connection with the world’s oceans and coasts. Running for 93

days, the Yeosu Expo aims to be the global community’s platform to

explore cross-cultural dialogue and share visions and aspirations on

topics that are vital to mankind.

Yeosu Expo will be held from 12 May to 12 August, 2012 at the New

Port area in Yeosu, Korea. For more details, please visit www.expo2012.kr

– Yeosu, Korea

Regal UAE National Olympic Committee Office Promotes DubaiWhen United Arab Emirates decided to

complement its ever-deepening involvement

in sports with a National Olympic Committee

(NOC) office, it turned to Pico for the full

scope of services.

The 1,000 sq.m. office enabled the client

to contemplate on other sporting events.

Furthermore, NOC office provides an excellent

exposure for Pico as it retains an office for His

Highness Sheikh Ahmed Bin Mohammed Bin

Rashed Al Maktoum.

- Dubai, United Arab Emirates

Flagship Franck Muller Store Makes Timely Appearance in BeijingThis Franck Muller watch store - the flagship establishment of Sincere

Brand Management Ltd. in the China World Trade Centre Tower 3, and

Pico’s tenth commission for the brand nationwide - projects a refined,

elegant ambience through the use of top class quality materials and

craftsmanship.

The blue lighting embracing the 5-metre high shop windows enhances

and consolidates the stylish brand image of Franck Muller, whilst

reminding customers that the shop is in the highest building in Beijing.

Red velvet and wood browns dominate the store’s colourways to further

exude the exquisite luxury that the state-of-the-art Franck Muller

watches revel in.

– Beijing, China

Pico is Voted one of 2011’s Top Three Best Event Companies in AsiaIn a positive start to Pico’s New Year, the January 2012 issue of respected CEI Asia magazine has voted Pico Group one of the Top Three Best Event

Companies in Asia in 2011. With this year marking Pico’s 43rd year of operation and the 20th anniversary of our listing on the Hong Kong Stock

Exchange, the strong foundations of our far-flung company are becoming apparent as we build on our core businesses with Total Brand Activation to

help our clients achieve their corporate and marketing objectives. Undoubtedly, 2012 will be a challenging year for our clients – and us – but we have

sound strategies in place to achieve success and scale even greater heights with our business partners.

CEI Asia is published by Haymarket Media Ltd., and stands for Conventions, Exhibition and Incentives. Over the past 11 years, CEI Asia magazine has

established a loyal readership in the events industry in Asia.

Huawei Enterprise Launch Network ShowroomHuawei is a leading global information and communications

technology (ICT) solutions provider, whose products and

solutions have been deployed in over 140 countries, serving

more than one third of the world’s population. As such, a

new showroom in Shenzhen was determined to be the ideal

way of providing clients with information about the company’s

new Enterprise Network business section, and with its

completion required on an urgent basis, Huawei turned to its

long-time creative partner Pico, who completed the project

in just three months.

- Shenzhen, China

Ford Escape 2013 Launch

Ford teamed up with social game developer Zynga to host what has

been dubbed the world’s largest Words with Friends – a Scrabble-like

social game in which players compete against each other by creating

words - to promote its 2013 Escape model. The game was made

available on Facebook, as well as iPhone and Android devices; thus,

in one foul swoop, the brand was proactively able to engage millions

of prospects.

For one hour on November 15, from 11:00pm to midnight, fans in the

U.S. could collectively play Words with Friends against celebrity Jenny

McCarthy at an event in Los Angeles. Pico has created the venue with

a full reveal photo of the new 2013 Ford Escape exposed on giant

screens, lending an instant involvement hitherto not enjoyed by the

wider ‘public’ and manufacturer as the new Escape debuted at the Los

Angeles Auto Show. And the mechanics of the promotion were simplicity

itself, with players submitting word suggestions via live-stream chat. The

game was also live-streamed on www.facebook.com/fordescape and

livestream.com/ford so that fans at home could play as well.

Director of U.S. Marketing Communications for Ford Matt Van Dyke

hit the nail on the head when he said, “By revealing the new Escape

through a popular social game like Words with Friends, Ford was

able to expand its reach beyond traditional social channels to mobile

platforms that engage a broader audience - a broader audience that

included young professionals, who were the prime target for this

particular initiative.”

Words with Friends is selected because of its 20-million player following

and their passion for the game. To drum up interest in the promotion,

the auto giant prepared the ground within the game itself, which it

complemented with invitations to compete on Facebook.

But the viral ‘assault’ didn’t end there. The Words with Friends event in

L.A. was only the first in a series of social gaming initiatives comprising

Escape Routes, an upcoming online interactive reality series featuring

six teams of two that will traverse the U.S. competing in virtual and real-life

challenges. Casting for Escape Routes began around the same time the

vehicle was unveiled at the show and is set to premiere on a variety of

digital platforms in the Spring of 2012.

– Los Angeles, U.S.

Economic Development Board Celebrates 50th Anniversary with Gala Dinner and SingaPOP! Concert

To commemorate 50 years of economic progress, the Singapore Economic

Development Board (EDB) kicked off celebration of this historic milestone

with a gala dinner attended by 10 government ministers and more

than 800 guests.

Revealing a colourful history, important developments and its hopes

for the future, a dynamic, multi-media experience unfolded on a 20m

long high-resolution curved LED wall to recount the EDB story through

the decades. In addition, the enterprise also launched ‘Heartwork 2’, a

coffee table book chronicling the last two decades of EDB’s contributions to

the community as well as EDB 50th anniversary commemorative stamps.

The highlight of the evening however was SingaPOP! - a free public

concert attended by a 5,000-strong audience. Paying tribute to 50

years of pop music in Singapore, a stellar line-up of over 120 performers,

showcasing some of Singapore’s greatest talent paid tribute to the

music and musicians that shaped Singapore’s popular music scene

from the 1960s to present day. Popular local show producer Dick Lee

served as Creative Director, while prolific filmmaker Boo Jun Feng acted

as Multi Media Director and accomplished song writer Iskandar Ismail

directed the music.

In its role as show and concert managers, Pico oversaw concept development,

artistes and site management, collateral production, F&B, security and logistics,

and, most importantly, the conveyance of the essence of the EDB ‘brand’.

“May I convey my commendation and congratulations to each and every

one of you for a great job in dreaming, planning and delivering SingaPOP!”

said Leo Yip, Chairman of the Singapore Economic Development Board.

“Thank you for the inspiration, the perspiration, the teamwork, and for

making this happen!”

– Singapore

IMAGEMAKER // WINTER 20114

Garnier Appoint Pico for Media LaunchWhen cosmetics giant L’Oreal decided to launch Garnier’s latest range of biodegradable skincare products in Hong Kong, it turned to Pico with a brief to design a branded event environment that amplifies the core product messaging of eco-friendliness. To heighten the media visibility and PR exposure, Pico curated and engaged local celebrities to create a star-studded, fun-filled event that resonated with the audience and media.

It was heartening for Pico to be chosen over Garnier’s incumbent PR agency to undertake the entire project from venue design & build, event management to talent management. Although we were facing tight schedule and short production timeline, Pico came up on top of the challenges faced, with a seamlessly choreographed event, driven by flexibility, professionalism and prompt turnaround.

With the event, Garnier has reported preliminary ratings showing an increase in brand awareness and relevancy of the new natural skincare line among its target market.

- Hong Kong, China

11th World Chinese Entrepreneur Convention

The World Chinese Entrepreneur Convention (WCEC) organised by the

Singapore Chinese Chamber of Commerce & Industry recently returned

to Singapore after some 20 years. It attracted some 4,600 delegates

from 34 countries and regions, 64 exhibitors and 31 sponsors.

WCEC is recognised as the leading business event for Chinese entrepreneurs

for networking and business negotiations, and has received strong support

from many Chinese chambers of commerce and various entrepreneurial

associations around the world. MP Asia’s management of the conference

was highly complex due to the numerous programmes as well as the

high-profile VIPs, politicians and renowned Chinese business leaders

attending, which required stringent security planning.

The conference featured a strong panel of speakers who sketched their

visions of the future. They hailed from diverse industries including real

estate, aviation, retail, food and beverage, agribusiness, wafer fabrication,

online business, new energy, industrial park development and hospitality.

“The 11th World Chinese Entrepreneurs Convention has met its objectives

and provided an informative global networking platform through a carefully

planned programme of plenary sessions, panel discussions and a

concurrently held exhibition,” said Lim Sah Soon, Secretary General of the

Singapore Chinese Chamber of Commerce & Industry. “It is hoped that

the 12th WCEC to be held in Chengdu, Sichuan in 2013 will continue to

carry out the ideals and objectives mapped out by the WCEC founders.”

- Singapore

Going Up! Ferrari and Maserati’s Shanghai Showroom

Pico in Shanghai and Singapore had their work cut out for them when Ital

Auto the appointed distributor for the Italian super sports car brand FERRARI

commissioned them to complete a double storey showroom in the heart of

downtown Shanghai in less than three months. Preserving and enhancing

the Ferrari and Maserati brand values were the most critical components

of the job and Pico executed it flawlessly by integrating it across the entire

project spectrum of design and space planning, materials and furniture

selection, graphic treatment, fabrication and project management.

While the location of the showroom was ideal, building code restrictions

did not allow for a car lift within the facility - a major roadblock in the

project as the client had to move new car models up and down from the

upper floor about twice a week. Pico improvised the situation by installing

a custom-made movable hydraulic scissor lift located on the pavement

outside the showroom building, which not only did the heavy lifting but

further enhanced the supercars’ sky-high reputation!

- Shanghai, China

Five colourful flying dragons, each of them unique and representative of

Hong Kong’s spirit as Asia’s World City, recently flew to South Molton Street

in the heart of London to beat the tourism drum. With the huge number

of street activities planned – including a VIP event in The Mews – the Hong

Kong Tourism Board required decoration, production and multimedia

deployment; event management of the Opening Ceremony and Performance

Event; and close liaison with local associations and the relevant government

councils in the UK, to help secure approvals and other details relating to this

innovative promotion.

All requirements were worked through with the client’s head office in Hong

Kong, and executed with the involvement of both offices in London and

Hong Kong. The accurate and speedy transfer of information and ideas was

critical to the success of the project, and with just eight weeks given to obtain

all necessary approvals and complete production - versus the standard 20

weeks lead time - Pico’s offices in Hong Kong and London pulled out all the

stops for what proved to be an exhilarating and successful day.

- London, UK

Hong Kong Tourism Board Stages Novel London Event

Amid much fanfare and a genuine air of expectation, Chevrolet Sales

(Thailand) Limited presented the Chevrolet Colorado pick-up truck to the

world in March in the 30,000 sq.m. Royal Thai Navy Hall with a dramatic

unveiling on the Chao Praya River followed by an exclusive media launch in

October at the Bangkok International Trade and Exhibition Centre (BITEC),

attended by some 2,200 guests.

As well as unveiling the Colorado with wind and storm effects, the world

premiere served as a launch pad to kick off the celebrations for Chevrolet’s

centennial, complete with the attendance of two high key executives from

General Motors as spokespersons, who were effusive in their praise of

the whole product roll-out. It had been a long and winding road to reach

this point, however, the success of which hinged on not only GM’s US$2

billion ground-up redesign of the pick-up but its appointment of Pico to

conceptualise and stage the Colorado’s dramatic entrance upon the public

consciousness.

Stage one of the challenge was for Pico to devise the all-important event

concept, propose the launch venue, design event elements, stage set,

lighting and sound, and bring together graphics, F & B and entertainment,

etc. It was decided to spread the launch over several months according to

the themes of ‘The Legacies of Kings’ and ‘Bring Out the Best in You’ – and

naturally the client wanted the events to be big, bold, and memorable from

start to finish.

World Premiere of Chevrolet Colorado

The theme for the premiere launch of the new Colorado was ‘connecting

the guests to the legacies of the River of Kings’, with Bangkok’s historic

monuments, grand palaces, temples and various riverbank communities

presenting guests with the visual splendour of the origins of the modern

capital. Against this backdrop, the never-before-seen Colorado Show Truck

was hidden behind a mock-up of the ‘Colorado Mountains’ before being

unveiled on a lighted barge floating in the middle of the bustling river; a

great wow factor for the 2,200 guests and VIPs in attendance.

Weeks later, Pico organised the launch of the first Colorado production

trucks made in Thailand. Utilising the theme ‘Bring out the Best in You’,

BITEC was chosen for the simple reason that the venue was fully equipped

for a grand theatrical show. Sparing no effort, Pico provided guests with

an immersive and highly realistic experience of the pickup’s history and

use in the American Midwest, culminating in an extraordinary spectacle as

twelve pickup trucks emerged from a stimulated rainstorm and ploughed

their way through a vast cornfield towards the audience, representing the

many obstacles that the new Colorado had to pass through to ‘Bring out

the Best’.

- Bangkok, Thailand

IMAGEMAKER // WINTER 20116

For the first time in ITMA’s 60-year history, show owner European Committee

of Textile Machinery Manufacturers (CEMATEX) broke tradition by appointing

an exhibition organiser not based in the host city of Barcelona. The privilege

went to MP International (MPI), which has organised ITMA ASIA, the Asian

version of world’s leading textile machinery show since 2001.

For ITMA 2011, MPI was able to successfully revitalise and differentiate the

ITMA brand with its ‘Master the Art of Innovation’ theme. At the close of

the eight-day show, it recorded 1,355 exhibitors from 45 countries, and

trade visitorship of over 100,000 from 140 countries. The mega showcase

featured exhibits spread over 200,000 square metres of gross exhibition space.

ITMA 2011 was successfully marketed as an integrated, entire textile and

garment value chain through various initiatives. The exhibit profile for the

garment sector was enhanced and with the new fibre and yarn product

category, visitors could source raw materials, in addition to machinery

and related services. They could also partake in outstanding education

knowledge-sharing and networking opportunities such as the first-ever

World Textile Summit.

MPI also introduced the idea of working with related textile and garment

federations/associations. In the end, the show received the endorsement

of 159 organisations from 63 countries. A number of the supporting

organisations also organised delegations to visit the show.

ITMA 2011

Glitterati Declare F1 Lifestyle Pavilion a Winner

To complement the world’s only night race in FORMULA ONE history, Pico was invited to design and build the Singapore F1 Lifestyle Pavilion in a 3-day event specially tailored for 500 VIP guests at the exclusive Paddock Club. Former Mentor Minister Lee Kuan Yew, Prime Ministor Lee Hsien Loong and other dignitaries graced the invitation list.

Charged with creating a memorable experience for its high profile guests, the project required careful planning from conceptualisation to execution as the pavilion was built entirely on an empty plot of land under a bridge and subjected to the exigencies of weather, time constraint and security measures.

Key highlights of the pavilion included the incorporation of three oversize Oriental lanterns in the holding area with carpet design to match, an experience further enhanced by the Boat Area, which housed a champagne bar and fine dining restaurant with cuisine supplied by world renowned restaurateur Jean-Georges of New York. A Wellness Spa and live entertainment stage lent further glamour to the pavilion.

“I’d just like to register a huge thank you for the tremendous efforts, good spirit and camaraderie in getting through the Lifestyle project,” said Michael Roche, Executive Director of Singapore GP Pte Ltd. “It was a rave success with positive and flattering comments flying in from all directions including the PM, Ministers, VVIP’s, Formula One Management and the teams. Well done: you should all be proud. Please pass on our gratitude to all who worked on the contract.”

– Singapore

“ITMA 2011 has surpassed our expectations, said CEMATEX President

Stephen Combes. “The sales and serious enquiries generated from

qualified international visitors are greatly appreciated by the exhibitors,

and our participants have all given a very positive response to the show.”

MPI has been appointed to organise the next edition of ITMA 2015, in Milan.

- Barcelona, Spain

Last December saw some 300 delegates from all over the world descend on Hanoi Vietnam for the 28th Pico International Conference. The three-day event proved to be a very productive forum for exchanging views on corporate tactics and strategic developments while mingling socially in activities such as the SL Chia Golf and Pico Group Treasure Hunt challenges. The conference closed with an unforgettable awards presentation grand finale dinner.

2011 Pico Group Annual Awards Presented at 28th Pico International Conference

IMAGEMAKER // WINTER 20118

Most Innovative Design // Intangible Culture Heritage Exhibition Centre // Pico Beijing

Most Innovative Design // Advanced Industrial Technology Gallery // Pico Malaysia

Most Innovative Design // CAAS 100 Years of Aviation in Singapore // Pico Singapore

Best Exhibition // Integrated Urban Solutions Pavilion at Singapore International Water Week 2011 //Pico Singapore

Best Exhibition // Staubli at ITMA 2011 // Pico Taiwan

Best Exhibition // ARTHK 2011 // Pico Hong Kong

Best Event// World Premiere of Chevrolet Colorado //Pico Thailand

Best Event// Hong Kong Tourism Board Stages Novel London Event // Pico Hong Kong

Best Conference & Show Management// Nokia Connection 2011 //Pico Singapore

Best Interior & Retail// Ferrari and Maserati’s Shanghai Showroom //Pico Shanghai & Pico Singapore

Best Museum & Themed Environment// Grand Aquarium at Hong Kong Ocean Park //Pico Projects International Hong Kong

Best Brand Signage & Visual Communication// Beijing Subway Line 15 // World Image Beijing

Best Mega Project// Xian International Horticultural Exposition // Pico Beijing

Pico Board of Directors Project of the Year// ITMA 2011//MP Singapore

IMAGEMAKER // WINTER 201110

Chung Chee Keong, Vice President of Finance, South Asia (left), receives the “Best Manager Award” trophy from James Chia, Group President of Pico

SL Chia, Founder of Pico (left), presents the “Best Office Award” to Takashi Oide, Executive Director (middle) and Isamu Takano, General Manager of Pico Japan (right).

Lawrence Chia, Chairman of Pico (left), presents the “Pico Far East Board of Directors - Awards for Excellence” trophy to Joe Abad, General Manager of Pico Los Angeles.

SL Chia, Founder of Pico (middle), presents the “25-Year Distinguished Service Award” trophies to Takashi Oide, Executive Director of Pico Japan (left) and Joe Abad, General Manager of Pico Los Angeles (right).

Outstanding Account Servicing// Kiyonobu Okawa // Pico Japan

Outstanding Account Servicing// Delisa Ha // Pico Hanoi

Outstanding Account Servicing// Anthony Lee // Pico Shenzhen

Outstanding Account Servicing// Lawrence See // Pico Singapore

Outstanding Account Servicing// Roy Niu // Pico IES Beijing

Outstanding Account Servicing// Catherine Lau // Pico IES Hong Kong

25-Year Distinguished Service Award// Takashi Oide // Pico Japan

Joe Abad // Pico Los Angeles

Best Manager// Chung Chee Keong, Vice President, Finance, South Asia

Best Office// Pico Japan

Pico Far East Board of Directors - Awards for Excellence// Joe Abad & Pico Los Angeles Team

Getting a little help from your friends was easy enough for Lennon

and McCartney, but in an age of Google Circles, Facebook lists and

Twitter followers - it is far from clear what friendship actually means.

Worse still, marketers are muddying the waters. Brands used to want

to brainwash us - now they all want to be our friends. But consider this

for a moment. What if the real purpose of social marketing was not

begging your customers to like you on Facebook but rather fixing a

much bigger problem holding back the future of your digital business?

Namely, trust.

I grew up in a retail family. My old man used to manage department

stores and when I was a kid, one of his favourite ‘father and son’

activities was to walk around the shop with me and check whether

the products that had been advertised in the newspaper that day were

actually in stock. More importantly, it was also his way of giving his

nine year old a home-made MBA. One Saturday morning, I remember

him pointing out one of displays and asking me whether I knew why

there were so many mirrors on the walls? I shook my head, puzzled.

‘When people can see themselves’ he explained with a wry smile, ‘they

are less likely to steal things’.

Like it or not - ‘being seen’ - is one of the strange, uncredited forces

that keeps civil society in balance. There are a lot of things that people

would do if they thought no one else would see them doing it. And in

rare moments, like the London riots in 2011 - you get a glimpse of just

what those things might actually be. But when Twitter and Facebook

aren’t being used to ferment revolution and riots, the social graph also

has the potential to change the way consumers behave online. And it

couldn’t come a moment too soon.

To be successful acquiring customers online and encouraging them to

transact with you - they have to trust you and to some extent, each

other. Unfortunately the Web is not the well lit neighbourhood some

people remember it as being. Take eBay as an example.

When was the last time you tried to buy or sell something on eBay?

It seems to me that what was once a friendly community of amateurs

and garage sales now feels like an unruly mob of fraudsters, identity

thieves and shady offshore merchants. When I recently tried to sell a

camera my advertisement was deleted halfway through an auction. A

terse email from the system informed me that my listing was considered

potentially fraudelent, and when I relisted the item and it finally sold

- the transaction was voided one final time - because the seller was

apparently a fake. Hardly the model of friction-free commerce.

So where does that leave the hot new trend of ‘colloborative consumption’?

After all, isn’t the popularity of new platforms to share your home,

your car, and other posessions indicative of a more responsible online

community? Perhaps, but it will be shortlived. In my view, like eBay,

once digital platforms become mainstream, it is inevitable that the

community spirit forged by early adopters becomes tainted by the

actions of a few willing to abuse the system. AirBNB is a case in point.

After some well publicised scandals last year - the platform faces an

uphill struggle to reassure their users of their safety.

The solution to this problem may be our social networks. Already, to

defeat spammers, many websites require you to login with Facebook

before you add your comments to an article. Similarly, if you connect

AirBNB with Facebook, you can then see which property owners have

common friends with you. Coworking space provider, Loose Cubes,

offers a similar feature. Picking an office where friends of yours have

worked before helps customers choose between the listings and also

provides the owner with a sense of who they are. However, these

integrations are only the beginning of what might be possible when

you start to combine data with smart consumer pyschology.

Integrating your customers’ social networks with your business can

significantly shape their behaviour. This is a strategy not just limited

to the digital world. When Grameen bank makes a micro loan, they

hold the borrower responsible not only for their debt, but the repayment

actions of those in their lending circle. You can apply the same logic

to the Web. Imagine if AirBNB allowed householders to only rent

their places to people within one or two degrees of friendship from

their network? And when someone did make a booking, the system

showed you the pictures of their common friends so that you knew

who you would have to answer to should something go wrong. It

would be like catching a glimpse of yourself in a store mirror, just

when you were thinking of shoplifting.

True - there is something slightly distateful about this. No one likes to

be reminded that we live in public. And rightly or wrongly, many still

believe that the Internet is some kind of protected space from the rest

of society where different rules might apply. That’s a delusion. Consumers

may want to be Mark Zuckerberg by day and Julian Assange by night,

but you can’t have it both ways. Either you are connected and you

take responsibility for your actions, or you are anonymous, cut-off and

on the run.

As social media matures, consumers will discover that their networks,

recommendations and behaviour will become a passport as valuable, if

not more relevant, than their credit rating. And for business, reaching

such an agreement with their customers will be equally essential - literally,

a new social contract. Without it, increasing levels of fraud, spam, and

abuse will cripple the new economy.

So the next time your marketing manager tells you proudly how many

new fans you have on Facebook, ask them to think about the more

interesting question. How could you leverage the social graph to shape

your customers behaviour?

Mike Walsh is the author of

Futuretainment and a keynote

speaker on future trends. You

can read more at http://www.

mike-walsh.com

Insights: The Social Side Of Trust - Mike Walsh

IMAGEMAKER // WINTER 201112

Please visit www.pico.com for more information.

Edited, coordinated, designed and published by Pico Group. All rights reserved. No part of this publication may be reproduced in any form or by any means, including photocopying and recording without the written permission of the publisher.

The photos shown in this newsletter were taken by photographers and cameramen commissioned by Pico, courtesy of our direct and indirect clients, and were chosen to highlight Pico’s part in our clients’ projects and to place it in context. While care has been taken to select the most appropriate photos, no implication is intended that all elements in the projects shown were done by Pico. For information, please contact us at Pico House, 4 Dai Fu Street, Tai Po Industrial Estate, NT, Hong Kong SAR, or call us at 852 2665 0990, or email to corp.info@hk.pico.com.

It’s the week before Christmas and typically, I have left buying my wife’s gift

to the last minute. In between meetings and after work, I have been hitting

the streets and malls of Hong Kong to find inspiration and find the gift. The

good thing about Hong Kong is that you are never short of choice. The bad

thing, it takes so much longer to actually buy something!

This is a perfect example of the problems of choice which was researched

and articulated so well by the American psychologist Barry Schwartz in his

book “The Paradox of Choice – Why More is Less”. In my aimless wanderings

over the last week, I was struck by the thought that perhaps we marketing

and agency folk, in our effort to innovate and differentiate in retail, are

collectively creating stressful and bad experiences for consumers. Sometimes

we forget that simplicity used at the right time and place is in itself a way

to innovate and differentiate.

On a recent retail project, my team and I stumbled upon the importance of

this ingredient. The goal of the project was to refresh the client’s retail experience to

reflect the desired change in their brand position. The brand was moving from

mass to a more luxury status – affordable luxury if you like. This would connect

it well to the aspirations of the growing middle class in Asia. However, the

change was not to be so great that we would damage the traditional business

by alienating customers that go to them for choice. It has been one of the

toughest briefs that I have had in many years.

Essentially, we deconstructed what was affordable luxury and looked

to define how to interpret this though store-front displays and in-store

experience. One of the elements reviewed was quantity and this simple

item alone was a discussion point for many months. We successfully

argued that for the client products, the beauty and exclusivity of

Insights: The Paradox of Choice - Tyronne O’Callaghan

individual pieces were lost in a sea of choice. That large quantity at

the store-front display was an inhibitor to achieving the objective

of the store-front – which should be capturing consumer attention

and making them explore further. We argued that variety is better

communicated through price mix and category style at the store

front and that wider choice should be managed in-store by customer

service. This was the easy part, but getting front line staff to change

their habits is really where it gets hard.

We are at a cross road in retail marketing in Asia. With the growing

middle class, the novelty of choice is still fun and can create a positive

shopper experience. However, as we move on and the consumer becomes

more sophisticated, some will revolt. They will seek simpler lives or

need simpler solutions. Not lives where they take vows of poverty, but

they will prefer shopping experiences that make choice simpler in a

complex world.

Each brand and product is different. For our client there was a certain

solution. For others simplicity can play out in different ways. Technology

can play a part, but the important thing is to consider at each stage of

your customer’s journey where there is a fight or flight problem – from

channel strategy, to location planning or in-store. Seek ways to make life

easier for people like me!

Now back to my wife’s gift. I still don’t have anything and there is one-day

to go. The pressure is on. Fight or flight is no longer a choice. All I can

do is fight. It won’t be fun or memorable, but a necessity. Wish me

luck and have a great New Year ahead.

Tyronne O’ Callaghan has more than 12 years’

marketing experience from events to data planning and

is currently the Director of Brand & Strategy at Pico

Group. He provides strategies and insights for many

renowned global brands and in particular creating

engaging and integrated brand experiences across

multiple platforms.

Source: Campaign Asia Online

http://blog.campaignasia.com/tyronne-ocallaghan/the-paradox-of-choice/

We are sincerely grateful to all our clients who have taken the time to participate in our recent on-line customer satisfaction survey. The prize for

our 2011 Q4 Survey Lucky Draw went to Lara de Masson of Defence Materiel Organisation. Pico’s Corporate Customer Care Centre treasures every

opportunity to hear from valued clients like yourself. Should you have comments or suggestions you would like to convey to our senior management

team, please feel free to email your comments and insights to customer.care@hk.pico.com at any time.

Pico Quarterly Customer Satisfaction Survey