The Mexican market has shown a growing demand for luxury goods and it was a terrific idea to bring Thomas Pink stores to Mexico”. Jonathan Heilborn CEO of Thomas Pink.
Mexico continues to be an important market for European firms. British products are recognized for their quality and perform well in the Mexican market.
The luxury goods market is the second most important in Mexico after the mass segment. Indeed, Mexico rates above Argentina and Brazil with 55% of the total sales of luxury goods in Latin America. According to AC Nielsen, 6.4 million Mexicans will have annual incomes of over US$60,000 by 2030.
Some key opportunities in the Mexican market are:
Luxury goods: Luxury goods are the second most important sector of business in the Mexican market after mass consumption products.
Cosmetics: During 2011 health and beauty specialist retailers increased by 4% in current value terms, reaching US$11.96 billion. On the other hand, surveys show that Mexican men across all age groups are growing more concerned about their own physical appearance and health, especially when it comes to hair loss, dandruff, white teeth and clear skin. Moreover, by 2016 it is expected that the number of people aged above 40 will exceed 36 million in the country. This will maintain cosmeceuticals’ main focus in the development of anti-ageing products for these consumers.
Footwear: The footwear retail market is highly fragmented, but large retail groups hold a strong position in the market wielding bargaining power over suppliers. Rivalry is strongest between these large players.
Toys: Just behind Brazil, Mexico is the second largest traditional toys and games market in Latin America, with value sales reaching almost US$2.1 billion in 2011. Mexico also had the second biggest 0-14-year-old population in the region in 2011 at more than 30 million. The Mexican toys & games market grew by 3.2% in 2011 to reach a value of US$1,655 million. Plush is the largest segment of the toys & games market in Mexico, accounting for 25.9% of the market’s total value.
Household appliances: Marked growth of the Mexican middle class over the review period has resulted in a larger number of households demanding beauty and personal care products than ever before. Mexico accounts for 7% of the Americas household appliances market value.
Getting into the market
Person-to-person direct selling maintains its preference among sales representatives, accounting for over 80% of retail sales.
Luxury brand directors agree that the success of a brand in Mexico is strongly related to the brands’ business strategy, having a wide range of products and the correct distribution channels. Using strategic selling locations is also a key to ensuring luxury brand success.
Research is also critical when considering any new markets, especially Mexico. For UK companies interested in doing business in Mexico, UKTI provides market research services including:
– Validated lists of agents/distributors.
– Key market players or potential customers in the Mexican market.
– Establishment of interest of such contacts in working with you.
– Arranging appointments.
Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists in country – or contact your local international trade team.
Irma Gloria Saldaña, UKTI Office Guadalajara. Tel: +52 (33)3630.4357 or email: firstname.lastname@example.org
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows.