"Our current focus is on growing the market for cordless and optical products"

Gavin Wu feels that Logitech’s focus on retail in India is only logical,
considering the fact that 85% of company’s worldwide revenues come from retail
sales. However, he affirms that this strategy will not create redundancy or
compete with the existing sales structure. Instead it will support the channel
in growing the market for Logitech´s products. DQCI catches up with him on his
recent visit to the country, where he was on a ribbon-cutting spree of sorts. He
inaugurated Logitech’s new office-cum-demo center in Mumbai as well as a few Logitech retail outlets.

nLogitech has been
focusing a lot on the retail front lately. What is the strategy behind this
retail initiative?

Worldwide, our focus on the retail sector is growing. In the quarter that
ended December 31st, 2002, retail sales for Logitech worldwide represented 85
percent of the total revenue and it was only logical that we extend our retail
strategy to India.

Also, our products have evolved considerably over the last few years and we
believe that there is a need for consumers to touch and feel our products to
fully appreciate the technology behind them.

And finally, both the Indian consumers and the retail environment have
evolved significantly in the recent past. Not only do buyers have more
purchasing power, they have also moved from pure price considerations to a
"value for money" concept while making a purchase decision. The retail
revolution has also changed the equation involving consumer and his needs.

nWould an
increased focus on the retail business mean a reduced focus on the business
through other channels?

The increased focus on retail by no means reduces our focus on the existing
channels. While the branded showrooms will run special promotions and schemes on
Logitech products, the actual sale will be routed through our channel partners.

This is therefore an initiative aimed at promoting and creating awareness
about Logitech´s products. The strategy is not to create redundancy or compete
with the existing sales structure but to support partners in growing the market
for Logitech´s products.

Also, Logitech has a array of premium products, which consist of cordless
desktops, accessories for hand held devices, digital cameras, speakers and other
high-end mice. These premium products cannot be sold by just pushing them
through channel but instead require lot of visibility, branding and convincing
power which only a retail counter can provide.

nHow much has
Logitech grown in the last one year in terms of revenue and marketshare?

There has been a significant growth on both counts in the last one year. For
the fiscal year 2002, worldwide revenue stood at US$ 944 million, a growth of
over 28% over the previous year.

Logitech continues to be the global market leader in segments like mice and
keyboards, web cameras and gaming devices. It is also a leader in cordless
products with sales of over 30 million units worldwide.

nWith a large
number of players offering similar products as Logitech’s, and that too at
very low prices, where do you position yourself and how do you plan to beat the
competition?

Logitech´s strengths lie in technology, design and range. Technologies like
optical cordless and force feedback allow for freedom at work, higher precision
and real-life gaming experience.

In mouse alone Logitech has more than 13 models in India.

nWhat are the new
products/technologies that Logitech is planning to launch in the near future?
And what will be the USP of these product?

Our current focus is on growing the market in India for cordless and optical
products. We will continue to bring the latest of our technologies and products
to the Indian market.

The roll-out in the last few months has included the state-of-the-art MX
series mice, the cordless presenter, PDA keyboard, value optical mice and the
QuickCam for notebooks.

nWhich buyer
segment is Logitech focusing on with its current range of products?

Our consumers come from all walks of life, ranging from a person who wishes
to purchase a basic PC, to one that seeks stylish design, or one who wants the
latest in peripherals technology.

nDo you have any
new plans for the channel in the country?

Yes, we have plans to cover more outlets through our Logitech Retail Partner
(LRP) program as well as increase the number of partners in the country.

The ultimate goal of these retail programs is to have Logitech visibility and
availability at every corner of the country. Under the LRP program, we wish to
cover more than 50 outlets.

Through our channel, we also hope to increase our penetration in B and
C-class cities.

nWhich is the
fastest growing market (country) for Logitech in the entire APac region? Where
do you place India in this region?

China is one of the fastest growing markets in the APac region. India is
also a significant player in the this region.

nHow does Logitech
handle warranty and service support for its products?

Most of our products carry a one-year warranty except optical range of mice,
which carry a two-year warranty. All service and support is extended through our
national distributors Rashi Peripherals, Aditya Infocom and Neoteric Infomatique.

NELSON JOHNY