Perspectives

Herman Miller and Logitech bring a $1,500 chair to esports

Collaboration between Herman Miller and Logitech

Logitech International SA (LOGI) is a manufacturer of computer gaming hardware and accessories. The company is well known for its product lines in headsets, mouses, keyboards and webcams.

Recently, Logitech had the opportunity to collaborate with Herman Miller Inc. (MLHR), a producer of office furniture, equipment and home furnishings. Why would an office equipment manufacturer want to work with Logitech? The reason is that it’s an opportunity to solve a common problem many gamers face, maintaining proper posture. 

The two companies developed the Embody gaming chair, which costs approximately $1500. Logitech and Herman Miller were able to bring together their expertise in design and research-driven solutions to create this chair. The Embody chair aims to help create better blood circulation and posture during long hours of gaming at a desk. 

Both companies are looking to continue producing unique furniture for gamers. Herman Miller wanted to get into the gaming market when it realized gamers took a variety of positions while sitting down. Herman Miller reported that professional streamers and esports athletes sit at a computer three times longer than those who work at offices. 

How this collaboration can impact the industry

The Embody gaming chair was made with medical professionals’ advice to provide gamers with proper back support. The chairs are pretty expensive, but for those who want to make a career out of gaming, the investment might be worthwhile. 

Last month, professional ESL gamer, Shane Kane, discussed with Forbes how sitting for long periods of time can lead to body tension, neck pain and other negative health effects. The adverse effects gaming had on Kane’s body show that the gaming market needs a chair like this. 

Other significant players in the gaming chair industry include SecretLabs, GTRacing Pro Series, Corsair and Respawn. Most of these manufacturers design the chairs with flashy LED lights, attractive color-coordinated designs, and high backs to display their logo like a billboard. 

Unlike these other brands, the Embody chair focuses more on health benefits. Instead of using eye-catching designs, Logitech and Herman Miller focus on the long-term benefits of using it. 

The effect on Logitech’s stock

Since its launch, Logitech’s stock has increased in price, from $72.55 to $73.03 per share. We’ll have to see if Logitech keeps the momentum going throughout the rest of the year.

Logitech has seen continued growth since the pandemic, with more people being at home. Sales of Logitech webcams, keyboards and other equipment increased as people needed them for their at-home offices. Logitech’s sales during Q1 2020 were approximately $792 million, a 23% increase compared to Q1 of the prior year. 

Investors should track the Embody chair’s sales to determine if Logitech’s collaboration project is a success. The year-end sales of the chair may decide if Logitech continues working with Herman Miller, or seeks a new venture. 

Also, investors should continue following Logitech to see if they get involved in other collaborations. Different types of companies have recognized the popularity of the gaming industry and are looking to join forces. This means that Logitech may team up with new companies to solve different problems for the gamer. 


Written by Daniel Wise | photo credit: NGame Esports

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