It Started with a Mouse...

Marcel Stolk: Senior V-P (world-wide sales and marketing), Logitech

Founded in 1981, Logitech designs, manufactures and markets human interface
devices like Internet video cameras; input and pointing devices such as cordless
mice, and keyboards; multimedia speakers; and interactive gaming products such
as joysticks, gamepads, and racing systems

n Why is
Logitech’s focus more on lifestyle and premium prices rather than convenience
in product offerings?

The PC in the home segment has finally moved to the living room. From a
white box spewing a labyrinth of wires, you now have a sleek flat screen and
just one wire. About five years ago, the only market for keyboards in Europe was
the entry level market. And even if a user wanted to replace a keyboard, he’d
buy one just like the one he was giving up. We started educating users on the
new functionality available in the segment and years after the introduction of
new products, the market is growing. We need to educate customers on the
benefits of buying high end products.

n Does the
price differential for cordless products remain the same?

Yes. The perception is that the cordless range of products is a high end
game. Majority of the market is price sensitive. Vendors do not want to add
value to the PC’s price by including cordless products. However, as PCs cost
so much less today, customers are more willing to invest in a cordless mouse or
keyboard. Even in the US and Germany, one finds cordless mice only at the high
end of the spectrum. In India, the figure is below 0%. We do have experience in
selling in countries where price sensitivity is high. In such markets, the right
promotion strategies work.

n Do you plan
to continue with the Labtech brand?

In March 2001, we acquired Labtec, a provider of high technology and other
peripherals and accessories for computing, communication, and entertainment.
Given that Logitech does not have good audio solutions in its portfolio, Labtec
products in this space will be retained. Labtec also has significant market
presence in the US. We will maintain Labtec value brands and also use Labtec
brands in other segments like mice and keyboards.

n What are
your plans for India?

Logitech products have been available in India since 1990. We currently have
just four people in India but in the year to come, we hope to grow the Indian
operations into a subsidiary. We are working closely with distributors like
Rashi Peripherals, Aditya, and Informatique.

Manjiri Kalghatgi in New Delhi