In a move expected to grow its market share locally, Logitech, the global manufacturer of personal interface products, will open a branch in SA next year.
Changing its tradition of operating out of Europe, the company has decided to make a "bold move" and establish a physical presence in SA.
Robert van de Vegte, Logitech GM for Benelux and SA, says part of the rationale behind the move is that SA is an emerging market that is showing great potential.
"The South African market is really looking promising. Its economy is doing well and the fact that the country was awarded the 2010 Soccer World Cup shows it is also generating international confidence," he says.
The company will initially concentrate on the South African market, but is not overlooking the possibility of expanding its operations to the rest of the southern Africa region.
Utilising the local success of its keyboard and mouse ranges, Logitech also hopes to market its audio and gaming products through South African retail channels.
"The South African market has so much potential that we expect it to do as well as some of the big markets in Europe. As the market begins to open up for ISPs and now that the VOIP issue is taken care of, we expect our Web-oriented products to start moving impressively," explains Van de Vegte.
With corporate headquarters through its US subsidiary in California, and regional headquarters through subsidiaries in Switzerland, Taiwan and Hong Kong, Logitech International is a Swiss public company traded on the Swiss Exchange and Nasdaq.
The company has manufacturing facilities in Asia and offices in North America, Europe and Asia Pacific. The company employs over 6 000 people worldwide.
Logitech`s origins lie in the original equipment manufacture sector, which remains an important part of its business.
During the past few years, Logitech has broadened its product offering and increased its presence in the retail sector, as consumers enhance their basic systems with more fully featured interface devices. Today, Logitech`s retail business accounts for over 80% of its revenue.
Logitech`s business model calls for supplementing its internal engineering and manufacturing capabilities with additional products and technologies through a combination of strategic acquisitions and industry partnerships.
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