Logitech pivots to IoT, smart homes to resume growth

After years of building a company on personal computer peripherals, Logitech has recently had to adapt to a new economy in which PC sales are flat and everything is getting hooked up to the internet. The company is now betting on IoT and the cloud, producing many different kinds of products, including remote controls and their unique Pop button for smart homes.

Logitech now expects to see 8 to 10 percent sales growth for FY2017. This is thanks to quick recognition of sales declines in the PC business and renewed focus in areas like mobile music speakers and video conferencing tools, which saw growth of 20 percent and 43 percent respectively, according to Reuters.

Logitech isn't the only company to see the light in this regard, either. China companies like Xiaomi are already trying to build themselves into lifestyle brands. Xiaomi has invested heavily in various internet-connected devices. OnePlus has started working in a similar direction, although the company has a more global focus than Xiaomi. Other brands popular in China like Miniso and the Japan's Muji have similar strategies by selling all kinds of devices, including electronics like wireless speakers and power banks. So far, though, Xiaomi is the only one to really emphasize IoT, which could prove to be an advantage.

Logitech has not ventured outside electronics the way Xiaomi has but company has proven that it can be successful selling pricier products like web cameras, speakers and various smart home products.