How diversifying multiplies a company’s success

As president and CEO of Leo Paper USA, Bijan Pakzad understands the importance of transformation—adjusting to market conditions and diversifying when the opportunity arises. Leo Paper was founded in Hong Kong in 1982; the US operations began the same year. For the first 11 years of business Leo specialized in the production of high-end paper gift bags, but market conditions required them to consider additional product lines. Here Pakzad explains how diversification and technological advances paved the way to new market opportunities.

"We are committed to providing excellent quality in everything we do, including offering the best value, being open and fair, and bringing solutions to our clients."—Bijan Pakzad, President & CEO

As a growth-oriented company we realized there was no longer room for growth in the bag market. We felt like we saturated the US market within the first 10 years of business and we were getting close to the market ceiling. We wanted to leverage our success in the quality-bag market and diversify into other product lines. We believed the most natural uses of our printing presses were books and children’s books. In 1993, we diversified our offerings by branching out into gifts, stationery, and quality packaging. It was at this same time we made the strategic decision to move our factory operations from Hong Kong to China.

Our packaging solutions are able to provide clients with optimal packaging design, innovative printing, and secondary process options. Our special-packaging teams provide our clients one-stop service with supply-chain support. This support ranges from retail packaging and point-of-sale displays, to the in-house manufacturing of corrugated boxes.

Seeing the increased use of electronics inspired our company to form a new division. In 2009, we formed a computer-electronic division, whose primary objective was to develop concepts that marry technology with traditional printing. With this strategy we were able to offer our clients more options while continuing to focus on our core printing business. We have been able to grow by adding technologies with our traditional print, as the technology called Augmented Reality illustrates. With Augmented Reality, users simply aim their printed material at a webcam and, with the proper software, the image comes to life on the computer screen with sound and movement.

We actually see our company focusing more in the packaging market because we see packaging as an area that will grow worldwide. Technology will be a factor but the packaging market won’t be replaced. It is like watching our business come full circle as we put more resources into packaging.

While growth had always been part of our plans, and a significant part of our success, we never wavered from our mission. We are committed to providing excellent quality in everything we do, including offering the best value, being open and fair, and bringing solutions to our clients. Our company’s mission is based on many basic life philosophies. Part of this mission is our dedication to our clients, the people that work for Leo Group, and anyone that deals with us. We established our “Leo model” at the time we were founded. People [are] our foundation. Strategy is our core. Quality is our root. Result is our principle. Pride in the company is evident because of what we built, how we built it, and how we treat people. And this will go on.