Logitech is setting up a dual-distribution channel model in SA to increase its OEM and business markets and ensure it maintains its record sales performances of the past two years.
Following the demise of its principal distributor, Siltek Holdings, at the end of 2001, the company has appointed Rectron and re-launched Workgroup as its main distributors. Both are responsible for distributing the entire Logitech and Labtec range of prime and value products for the retail, reseller and OEM markets.
Now Logitech SA and its two main distributors have begun to recruit sub-distributors to help drive its products into the OEM and business sectors.
"For the past two years we have been very focused on developing our retail market in SA with our high-end peripherals, but this is not the optimal channel to service the massive business PC community which represents the bulk of our potential market," says Shawn Bezuidenhout, sales and marketing manager at Logitech South Africa.
Research has shown that whereas Europe enjoys almost a 50/50 split of home PC to business PC, the SA ratio is nearer 90/10 in favour of the business PC.
"The SA market is quite unique in this respect," he says. "We realised that we had to develop a new channel model to penetrate this business market successfully hence our dual distribution channel strategy and our current drive for key partners to help us develop in this space," he adds.
Sub-distributors are being recruited in areas where the main distributors are not represented as well as those operating in niche or focused markets such as government, SME or large corporates.
As sub-distributors they will stock and have access to the full Logitech product line, receive marketing support, and, says Bezuidenhout, "be in a position to share in our 400% growth last year at a time when the much of the computing industry was having to cope with declining markets".
Logitech is currently making major inroads into the OEM market. Both Rectron and Workgroup, via Pinnacle, have significant PC assembly interests. In addition to Logitech`s Black Label OEM range of keyboards, mice, speakers and webcams, including new optical and cordless versions, its White label range of non-branded devices is also becoming popular with other PC assemblers of local manufacturers.
Logitech`s prime product range of top-selling cordless, optical and traditional keyboards, mice, trackballs, webcams, digital cameras, speakers, and games devices including a new PlayStation range, continue to dominate the retail sector.
In addition, a rapidly growing business market is developing among the country`s call centres, with Labtec`s new budget-priced microphones and headsets enjoying significant sales success. "Last year we successfully built a solid base on which to now grow our market in SA and I`m confident that we`ll see growth in excess of 200% again," concludes Bezuidenhout.
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