Logitech, the globally renowned brand in computer peripherals originated from Switzerland, has been actively expanding its presence in Taiwan, extending beyond its IT-centric image and delving into the realm of everyday life. In May 2023, Logitech took a further step by establishing the world’s first Logitech for Business Showroom in Taiwan, with the objective of providing enhanced office experiences to a broader range of businesses. This strategic move represents a significant elevation of Logitech’s brand influence. In this interview, Vince Huang, General Manager of HH Galaxy, engages Aries Sze, Country Manager HK & TW of Logitech, to gain deeper insights into Logitech’s brand management strategies in Taiwan.
Left to Right: Aries Sze, Country Manager HK & TW of Logitech & Vince Huang, General Manager of HH Galaxy
Vince: “Aries, you mentioned that you hypothetically fire yourself every year. I’m curious, what’s the mindset behind this practice?”
Aries: “This concept was proposed by our global CEO, Bracken Darrell, and I think it’s great. Logitech has experienced rapid growth in the past decade, and our business, sales channels, and products have evolved significantly. By embracing the mindset of starting fresh each year, as if we were new hires, and contemplating how we would tackle challenges, we are able to uncover the captivating and remarkable aspects of Logitech, rather than magnifying shortcomings within the organization. This annual reset enables me to pinpoint areas for personal growth and ongoing improvement.”
Vince: “That’s an excellent concept. Will Logitech incorporate this concept into internal communication and employee management?”
Aries: “Absolutely. We incorporate this mindset into our internal leadership discussions, ensuring that employees understand the value of embracing this approach when facing challenges and seeking opportunities for growth. Effective communication becomes crucial as the business experiences rapid expansion. Business growth is closely tied to personal growth; without individual development, it becomes challenging for the business to thrive. Personally, I always look ahead and assess whether the organization’s growth trajectory aligns with the industry development direction for the next 5-10 years. It’s vital to determine if both my team and I are adequately prepared for what lies ahead.”
Vince: “It sounds very similar to one of the core values of HH Galaxy, the Growth Mindset. I would like to know how you propagate this concept among the entry-level employees.”
Aries: “I believe that having ownership is crucial in fostering a Growth Mindset. Without shouldering responsibility, it’s challenging to develop such a mindset. When team members have well-defined roles and responsibilities, they can identify areas for growth, and it enables us to support their development. Accountability serves as a powerful motivator. Our approach is to empower individuals by granting them authority and responsibility, as it is through this framework that a Growth Mindset can truly flourish.
Logitech’s work culture sets it apart from conventional foreign companies, as we prioritize more than just execution. Over the past decade, we have fostered an environment of internal entrepreneurship, enabling each country to redefine its unique identity within the parameters of our brand image. This may involve localized development, sharing successful case studies, and subsequently applying them to other global regions, creating a dynamic exchange of ideas and strategies.”
Aries Sze, Country Manager HK & TW of Logitech
Vince: “I rarely see such examples in large global organizations. It resembles more of a tech or startup company.”
Aries: “Exactly. For example, in the past few years, we focused our resources on esports in Taiwan and Hong Kong, while allocating fewer resources to office supplies. This wouldn’t be possible in other companies due to the different business units. However, Logitech trusts the expertise of local managers. As long as it fits within a balanced P&L scope, we’re willing to try new things. Our expansion of stores in Taiwan, collaboration with esports associations in Hong Kong, and the establishment of the Logitech for Business Showroom in Taiwan are all examples of our ventures. This is why I fear boredom, but I can happily work at Logitech for ten years! While our sales used to rely on physical channels, we’ve now embraced a dual focus on retail and e-commerce. Looking ahead, we aim to become an integrated hardware and software service provider, collaborating with more businesses and channel partners.”
Vince: “I can personally relate to that. HH Galaxy serves many international brand clients, but our partnership with Logitech is different. It’s not just a simple client-vendor relationship; it feels more like a true partnership. We collaborate on how to do together, evaluate each other’s capabilities and resources, and tackle market challenges as a team. I’ve learned a lot from this kind of collaboration.”
Aries: “Logitech doesn’t encourage unethical means to achieve business goals. We believe in collaboration and equality. When I first entered the market, I noticed that our approach was often too submissive, as if we were begging retailers to place orders. But it shouldn’t be that way. We should think about how to help our channels improve their performance through initiatives like advertising, new product launches, and integrating online and offline experiences. These efforts help us establish mutually beneficial relationships with our retail partners. Despite having a market share of over 70% in the computer peripherals market, Logitech doesn’t let that go to our heads. We continue to approach our partners with equality and fairness.”
Aries Sze, Country Manager HK & TW of Logitech
Vince: “Another example that showcases Logitech’s strong Growth Mindset DNA is its recent shift from a consumer focus to the enterprise market, which has resulted in significant breakthroughs. How did you identify this business opportunity?”
Aries: “Actually, even before the pandemic, Logitech had already started incorporating video conferencing features into its products. The company recognized the potential of the B2B market, but it was during the pandemic that the opportunity truly exploded.In the past, our focus was primarily on the B2C market, and the idea of targeting the B2B market was not actively pursued.
However, as I delved deeper into the dynamics of the market, I realized that the issue lay not with the market itself, but with our own perspective. Coming from a consumer-oriented background, I took it upon myself to study and build a strong B2B business model. I discovered that Taiwan and Hong Kong alone have over two million small and medium-sized enterprises. If we could successfully cater to their business conferencing needs, the revenue potential would be significant.
Finding the right balance between the C and B markets is a crucial responsibility for business leaders. By capturing opportunities in both segments, we can achieve a more robust and sustainable operational structure.”
Vince: “Let’s discuss Logitech’s approach to e-commerce, which I find to be quite innovative. What role does e-commerce play in the overall strategy?”
Aries: “We may not be leading the pack, but we are eager to learn and experiment. We’ve gained many insights from collaborating with HH Galaxy, and it has been a mutually beneficial partnership.
Logitech’s products demand a hands-on experience for consumers to truly appreciate them. The distinction between a mouse priced at NTD 199 and another at NTD 3,999 lies in the tangible touch and feel.
Initially, our e-commerce approach was focused on price competition, and we faced objections from our channel partners. However, one of our salespeople noticed that when we offered online promotions for Product A, offline inquiries for the same product also increased. This led me to realize that our online and offline product strategies should align, as consumers were often left confused by the disparity. So, we made the decision to synchronize our online and offline strategies, resulting in an immediate improvement in offline conversion rates. We also recognized that e-commerce is not just a sales channel but an avenue for creating awareness, exposure, and activation. The integration of online and offline is the best approach for our brand, consumers, and channel partners in this market.”
Left to Right: Vince Huang, General Manager of HH Galaxy & Aries Sze, Country Manager HK & TW of Logitech
Vince: “It seems like Logitech is strategically focusing on the entire consumer shopping journey. Is that correct?”
Aries: “Yes, indeed. In Hong Kong, we offer a unique online purchasing experience combined with offline pickup services, which has contributed to 20% of our online revenue. Moreover, we have taken steps to make the Logitech brand more relatable to consumers’ daily lives. We have established our presence in department stores and outlets, where our focus is not solely on communicating product specifications and prices, but rather on conveying the concepts of a high-quality lifestyle, environmental sustainability, and promoting health-conscious office supplies. This strategic shift has resulted in an increase in average customer spending.
We strongly believe that online and offline channels should not be seen as competing entities, but rather as mutually reinforcing components. Each channel offers unique advantages. Offline channels provide customers with a tactile and immersive experience, while online channels enable us to create multiple touchpoints and engage with a wider audience. Building on this perspective, we have transformed our physical stores, moving away from a cluttered display of products to creating experiential environments. As a result, our retail channels have seen a remarkable 30% increase in average customer spending. This approach was initially met with skepticism from channels, but as Logitech successfully implemented it, other brands have started to adopt similar strategies. We are thrilled with this development because our goal is to grow together with our channel partners.
In my opinion, the true growth of the Logitech brand doesn’t come from snatching market share from competitors; it comes from collaborating with our channel partners to create greater value for consumers and enterprise customers.”
