|
 Subrotah Biswas, Country Manager, India and Saarc, Logitech, says partners need to focus on bottomlines rather than chase toplines
The PC peripherals market witnessed more or less flat growth in 2009. Consumers mostly went in for products that provided maximum features at the best possible price. People became very price-conscious, and their spending habits were greatly influenced by their needs rather than their wants. They refrained from impulsive buys, and went in for pre-planned purchases which suited their technological requirements.
A key learning of 2009 was that consumers were simply not willing to pay extra merely for a brand or for jazzy features. Their tastes are changing, and they expect both vendors and resellers to understand and adapt to their changing lifestyles. Products which had a perfect blend of features and style at attractive price-points did well during the year.
With the proliferation of digital technology at home, the line between core IT peripherals and home electronics is blurring rapidly. This has prompted companies such as Logitech to reinvent themselves through acquisitions and innovations to become complete digital lifestyle companies. Logitech has launched a number of products such as speakers, universal remotes and wireless goods to suit the needs of the new consumer.
Green technologies
The concept of Green technology is catching up, and products using such technologies have been seeing demand in the current market. Wireless technology is gaining ground because of its low cost, ease of use, and faster and clutter-free installation. Wireless keyboards and mice are no longer just meant for the enthusiast but have become must-have computing tools.
Some of the new markets which opened up over the last year (for us specifically) were in audio systems. Today, speakers and docking systems for MP3 players (such as iPods) have become a niche but fast-growing segment.
The mouse on the glass
Partners need to understand that it’s important to align with vendors who are continuously innovating. Innovation is not just about delivering more features, it’s about creating products at special price-points that will tempt consumers to come out and buy them.
Innovation is about ensuring that the digital product solves an existing challenge for the customer, or offers a feature which makes life easier for him. For instance, PC users have long complained that the mouse does not work on glass, hence we recently launched a mouse which works smoothly on glass.
What do partners need to do?
It’s important for partners to focus on bottomlines rather than chase toplines. They need to understand that the customer will keep coming back to the reseller who offers the best value for money without compromising on product comfort factors.
In addition, partners need to find the right balance in the product range. I also advise partners to continue observing inventory discipline—keep a low inventory to ensure faster rotation of capital. |