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