“We are A Clear Market Leader in PC Peripherals”

By VARINDIA - 2010-02-18

“We are A Clear Market Leader in PC Peripherals”

How do you see the market for PC peripherals doing in India?
Most of the industries in India are facing the heat of the global economic slowdown and the PC market too has not been able to escape from its clutches. At a time when the traditional verticals like the automobile, real estate have been affected considerably, the non-traditional verticals like telecom, government sector, etc. have come to the rescue of the IT peripherals market.

We believe that the peripherals market will witness a more or less flat growth in the upcoming year. And majority of this market would be from replacement market. The current market conditions are favourable for the growth of the replacement market with more and more people opting to replace their older peripherals with new ones (over buying a brand new PC or notebook). This provides a large number of opportunities for peripheral manufacturers like us. We do not have an exact market size figure. We estimate the replacement market to be around 30% of the total PC market (2.19 million). This, in addition to the integrated PC market of 1.095 million (15% of total PC market) and new PC buyers market of 0.73 million (10% of total PC buyers), gives us market size of about 3 million.

What are the verticals that are driving the growth?
Like I mentioned earlier, the replacement market is very strong in today’s scenario. We assume that although people may not be buying new machines, they are touching up/upgrading their PCs and computing environment. We also expect to explore new avenues like the telecom sector that are growing at a fast rate in spite of the global slowdown.

How many types of peripherals are selling in the market?
Logitech has always believed in bridging the gap between the consumer and PC/ Notebooks. We aim at making the consumer-PC interaction as smooth as possible with our innovative technologies and peripherals. Currently, we have a wide range of peripherals in various categories for both desktops and notebooks.

Our product categories include mice, webcams, keyboards, speakers and headsets for desktops and notebooks. We also have notebook peripherals designed specially for notebook users like the notebook bags. Our bags help you carry around the notebook with ease and at the same time protect it from external damages. Similarly, Alto Notebooks Stands help you elevate the notebook to the desired level, USB Hubs, etc.

What are the opportunities for retailers?
We already have presence in Large Format Retail (LFR) stores like Croma, E-Zone, etc. We have received positive response from the retail market and are continuing to increase our presence in modern retail in due course of time.

What kind of volume you are selling in India?
Due to our company policy on such local market disclosures, we will have to excuse ourselves from answering this question. As per our calculations, we are a clear market leader in PC peripherals.

What is your go-to-market strategy?
In the PC peripherals space, we are a preferred brand and have high-recall and a strong reach. We will build on these strengths. Our focus is to continue to innovate and get consumers excited over newer technology and relevant products. We have a huge untapped market potential. That is our game plan.

What is your business goal for the year 2009?
2009 is expected to be a slow year for the PC Market. We plan to cash in on the existing PC market that will go in for replacement peripherals rather than buying new peripherals. We also plan to target large corporate sectors and provide them exclusive hi-end products. We have already tied up with Bharti Teletech for the same.

How the market will grow in 2009?
As I mentioned earlier, PC peripherals market will witness, more or less, a flat growth in the upcoming year. There will surely be a growth. However, it would be a slow-paced one. People would go in for products that provide maximum features at the best possible price. People have become price-conscious and their spending habits too are greatly influenced by their needs rather than wants. People are now refraining from making impulsive buys and are going in for pre-planned buys that would suit their technological requirements.

Products that are a perfect blend of features and style at attractive price points would do well in the year 2009. And Logitech has an exciting portfolio of products that fit well into this category. The concept of Green technology is catching up and products using such technologies have been gaining demand in the current market. Logitech has realized the importance of green technology and has incorporated the same in many of its products. Many of its products come with extended battery life that helps in energy conservation. For example, one of its latest offerings, the V550 Nano Cordless Laser Mouse for Notebooks offer 18 months of battery life (on a single single pair of AA batteries)

What are the challenges before you and how do you plan to overcome them?
As market leaders, we focus on growing the market with constant innovation, brand connect and reach.

The current market scenario does dampen it a bit, but not significantly. Logitech is known for introducing products with unique features and technologies. Adaptability to the changing need of consumers has made Logitech a favourite brand amongst consumers and we will continue to do so. For example, we recently introduced the S520 Cordless Desktop. A perfect companion to your flat screen this sleek beauty with its matte-black and grey palette, rounded edges and gently curved palm rest, and the straight lines of its full-size layout complements a wide range of computers. Plus, the high-performance cordless laser mouse delivers exceptional precision and smoother tracking, compared to optical mice. Such products with attractive and unique features always find a place in the market. And they would surely be accepted well by the consumers due to the variety of features offered by them.


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