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SCMP Reporter

Logitech International, one of the world's largest makers of peripheral gadgets for computers and consumer electronics devices, is sharpening its focus on China.
'We will reinforce our presence in the country,' said Logitech co-founder and director Daniel Borel, though he did not elaborate on the company's investment plans.
Borel said Logitech recently decided to treat  China as a separate  market from the Asia-Pacific region. Its two other traditional  markets are the United States and the Europe, Middle East and Africa region.
Logitech, which started manufacturing  on the mainland in 1992, plans to grow its distribution network across the country.
The Swiss firm, which had revenue of US$1.44 billion in the nine months to December, plans to increase its China  sales force to reach retailers beyond the traditional computer malls and offer more incentive programmes for in-store  agents.
'Manufacturing brought us here, but we've also been able to grow and become more aware of what Chinese customers value,' Borel said.
As of November last year, the company's main nationwide distributors included Digital China, Ingram, and Penpower. These cover small and medium-sized dealers and retailers in the developed  cities to the more rural markets.
Mainland  distributor Joyou handles the larger retail accounts across the country, including electronics chains Sunning Appliance, Carrefour and Gome Electrical Appliance Holdings.
 Werner Heid, the senior vice-president for worldwide sales and marketing at Logitech, estimated last November that 52 per cent of  China revenue came from Beijing, Shanghai and Guangzhou.
About 33 per cent came from a dozen tier-two cities, while 254 cities in the tiers three-five categories accounted for only 15 per cent of sales.
'New population centres in China are driving growth,' said Erik Bardman, the chief financial officer at Logitech.
He said internet users were  'skewing younger in China than in developed countries', adding that  mobile broadband network build-up was adding more internet users.
According to a report from technology consultancy Ovum, mainland broadband connections, including high-speed mobile phone links, should top  551 million by 2014.
Borel said Logitech  was also keen to build  greater  brand-awareness as it faced strong competition.
Microsoft is Logitech's main competitor in the computer mouse, keyboard and desktop product lines. Rivals in the personal computer Web camera segment include Microsoft, Creative Labs, Philips and Hewlett Packard. 
Competitors in the mobile entertainment and communications platform speaker business include Altec Lansing, Creative Labs and Bose Corp.
Remote controller rivals are Philips, Universal Remote, Universal Electronics, RCA and Sony.



Gadget giant Logitech sets sights on something special for China