Logitech to expand China market
By Liu Baijia (China Daily)
Updated: 2004-08-03 08:59

The global computer mouse and keyboard giant Logitech International aims to develop China into one of its top three markets in the world within five years, said a top company executive.

Guerrino De Luca, president and chief executive officer with the US-headquartered computer peripheral maker, said that China has become one of the most important markets for Logitech in the future.

Regarding the present impact of China's contribution to Logitech's global sales, De Luca said, "It is too small."

He said that the Asia Pacific region generated 16 per cent of the company's sales.

The sales from China accounted for less than a half of that and ranked it as one of its top eight markets, although Logitech's only manufacturing base is located in Suzhou of Jiangsu Province in East China.

The Logitech chief said that considering the low penetration of computers, the fast growth of computer shipments, and people's increasing incomes and awareness for quality products, Logitech should play a bigger role in the market.

De Luca expects his business in China will grow an average of at least 30 per cent in the next five years.

"Our business in China is mainly focused on trading, but we plan to do more in the future and make ourselves a premium brand in the market," said De Luca.

"There is a tipping point now."

The company, which relied on distributors in the past through which it has created a strong reputation for itself among computer experts, has decided to open more experience centres, permanent retail establishments that sell the company's products and introduces the latest technology to ordinary customers.

According to Gavin Wu, vice-president of sales and marketing for the Asia Pacific region, Logitech aims to increase the number of Logitech experience centres from 30 to 100 this year in major Chinese cities with at least US$1 million.

Logitech will also double its sales team in China from 30 people to communicate with distributors, retailers and customers and elevate Logitech's brand among customers as well as sales.

Besides sales, the NASDAQ and Swiss Exchange company will develop more products to the local demands.

De Luca said his company opened a research and development (R&D) centre in Suzhou, where 50 engineers work.

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