Logitech plans to diversify its user base via education, health, AI

Logitech expansion plans: Logitech International is charting a course for accelerated growth by diversifying its consumer base into sectors such as education and healthcare, alongside a strategic focus on leveraging artificial intelligence capabilities, according to Chief Executive Hanneke Faber on Tuesday.

Following a span of 2-1/2 years marked by decline, the maker of computer peripherals, including mice, keyboards, and video conferencing equipment, experienced its first quarterly sales upturn.

Faber outlined Logitech's aspirations for a 0-2 per cent sales growth over the next year, with ambitions for even swifter expansion thereafter. "We are aiming to organically accelerate growth to mid-single digits post this fiscal year," Faber stated in an interview at Logitech's headquarters in Lausanne.

The company, previously centred on office-centric products, now aims to broaden its horizons by enticing consumers to invest in premium iterations of its offerings, which encompass speakers and webcams.

"We recognise that the majority of the global workforce operates outside traditional office settings, spanning sectors like retail, education, construction, and manufacturing," noted Faber. "This presents an opportunity for Logitech to expand its market presence, potentially doubling our total addressable market."

Focusing on specific sectors, Logitech eyes educational enhancements, such as child-friendly headphones. Moreover, there's a strategic push to tap into the expansive gaming market by introducing more tailored products for console and mobile gamers.

While pursuing increased business-to-business sales, Faber acknowledged the prevailing challenges in this segment. Nonetheless, she underlined the enduring shift toward hybrid work arrangements post-pandemic as a defining trend.

Logitech's future product lineup is poised to integrate artificial intelligence, facilitating seamless user experiences. For instance, forthcoming offerings will grant users swift access to generative AI systems akin to ChatGPT. Additionally, AI-equipped video conferencing solutions promise enhanced functionality, enabling cameras to prioritise speakers while suppressing background noise.

Regarding potential acquisitions, Faber noted Logitech's healthy cash reserves of $1.5 billion but underscored a cautious approach. "We possess the financial resources, yet prudence will guide our decisions," she affirmed, emphasising a measured stance toward potential deals.

(With Reuters inputs)