WHY MEXICO?
With an enormous market and diverse economic base, Mexico offers something for almost every business type.
Mexico City already has an advanced lighting infrastructure. We are working with the city to develop ways for them to utilize the systems they have in the most efficient, effective, and productive ways. For example, during breast cancer awareness month the city could turn its monuments pink. The city now has the freedom to utilize its technology in a creative way while simultaneously getting important messages to the public. We have entered a new era, and we are no longer just selling basic lighting products; we design and implement complete lighting systems that add value and quality to consumers' lives. Mexico has more Philips Lighting manufacturing sites than any country in Latin America. We have four large facilities and over 4,000 employees. We have a large plant in Tijuana, two plants in Chihuahua, and our newest plant is near Monterrey. With these four factories we develop all the lighting portfolios across the Americas. Though most of these facilities' output is exported to the US, we serve Mexico and Latin America.
There are several things that set Mexico apart from the rest of the world. In Honeywell there is a group of countries denominated as high-growth regions. Mexico is in the top five along with China, India, Brazil, and Russia. One of the most exciting things about Mexico is its diverse economic base. Automotive is where manufacturing really took off, but it has since spread into aerospace and other sectors. This diversity gives the country less of a risk profile and more of an opportunity and growth profile. As Mexico develops its infrastructure and education, we will see much more growth in the southern areas, which could be a profitable area of investment and could lead to real, sustainable development. One of the first places we entered in the Mexican market was Tijuana but we have presence in cities like Chihuahua, Ciudad Juarez, San Luis Potosi, Mexicali, Monterrey, and Mexico City.
Masisa is part of a company that has a strong presence in Latin American operations. We arrived in Mexico in 2001. In the beginning, it was difficult to introduce our materials in Mexico, as the way construction was being done was different than it is now. We were the first to introduce Chilean technology and promote the use of such products. Of the countries where MASISA has operations, Mexico is number one. We are extremely happy that our board of directors has confidence in us and has invested in Mexico while our competitors were investing in other countries such as Brazil and Chile. The economic situation in Mexico, despite certain macroeconomic issues, is the most important in the region. The trade balance is negative because Mexico imports a great deal of furniture from other countries like China and the US. With such an investment MASISA Mexico seeks to promote the local industry and generate jobs. It is also important to give local designers who can introduce Mexican design an opportunity.
PepsiCo has grown alongside Mexican families for more than 100 years, which illustrates just how important the Mexican market has been for us. Throughout the years, we have grown through acquisitions at both a global and domestic level. We operate under a multi-category business that has been around for many years. Our portfolio is composed of many of the country's most-loved brands nationwide like Sabritas, Quaker, Gamesa, and Sonric's. We have a great deal of respect from our consumers and are extremely proud to be close to Mexican families. We have a huge agriculture footprint in Mexico, being an agro-industrial company, and have great partners working with us in order to develop, not only new and better products, but also providing access to quality agricultural programs. I visit our farms every single year to talk to our suppliers and partners, and this brings us close to where our products are coming from. Agro has a huge growth potential here in Mexico.
Mexico has different contributions to the company strategy between sales and revenues. Mexico is one of the top countries for Schneider Electric for many reasons. We employ more than 9,000 people in the country and have 12 facilities that are primarily focused on products for both export and parts for the local market. Mexico has demonstrated a high level of quality and engagement with world-class manufacturing since 1994. The footprint for Schneider in Mexico has increased significantly in this timeframe in terms of manufacturing; we also have close to 300 engineers working for Schneider in Monterrey in our R&D center. This center has the latest R&D technology and is why Schneider continues to invest in Mexico, as it has proven to be a country that provides value for the investment and growth that we have experienced in terms of sales, employees, and exports. We have demonstrated stability in terms of business management and economy management. Mexico is a top priority for our company.
Mexico represents around 5% of the Americas but in the region it is 18% of Latin America. When Epson decided to expand beyond Japan, one of the first countries it decided to enter was Mexico. It saw the potential of the country; the economy was stable and the majority of important US brands were here. Since we started in 1987 we have gone through several phases; at one point we were manufacturing printers in Mexico. Now, we no longer manufacture here as the majority of our products are manufactured in Asia and the US to capture economies of scale. However, the company has become a key sales and marketing subsidiary that has positioned the Epson brand as a leading IT player in Mexico. Seiko Epson Corporation has always viewed Mexico as a key country, and we continue in this way. The majority of our revenue comes from printing, projectors, and POS solutions. We are also growing in the textile business. On the printer side we bring to the market products for corporations and printers that can be sold as a managed printing service.
Mexico is the second-largest online market in Latin America and the second-largest market for Google in the region. Over half of the population is online, so there is still room to grow in terms of digital penetration. In Mexico, businesses have stopped questioning the need to be online and now see it as a necessity; this is a great opportunity for Google. Mexico is a country where most of the people are connecting through their mobile devices, this is the first time this happens in the region, but the trend is spreading across all countries. Also, Mexico is our third-largest global market for YouTube; in terms of watch time it is only behind the US and Brazil, this means that Mexicans are engaged with and are vivid video consumers. There is a regional challenge within the banking system. We are facing a time of tremendous opportunity for entrepreneurs, banks, and other companies to develop and accelerate different payment options. Brazil and Argentina were part of the first wave of Latin American entrepreneurs, now Mexico is leading the next wave.
We recognize that proximity to the US makes the Mexican consumer extremely savvy and much more demanding. Only about 8% of the population in Mexico has a private health insurance plan; this on its own makes the Mexican consumer a different kind of customer. For a pharmacist, it is very important to get to know the healthcare needs of the community it serves. Our challenge here is to make sure we have the right medicine, at the right store, in the right quantities and at a competitive price. We want to change the way that we bring healthcare to the Mexican consumer while bringing innovations. We want the customer to see us not only as a trusted pharmacy but also as a source of bringing innovation in the areas of wellness and beauty. We have a very strong expansion plan. We are a northern company; 700 of our 1,145 pharmacies are in the north. Five years ago, we did not have any pharmacy in the vicinity of Mexico City. Today we have around 100 and are looking to expand.
WHY MEXICO?
TABLE OF CONTENTS
Interview
Alicia Bárcena, Executive Secretary , UN Economic Commission for Latin America and the Caribbean (ECLAC)
TBY talks to Alicia Bárcena, Executive Secretary of the UN Economic Commission for Latin America and the Caribbean (ECLAC), on Mexico's structural reforms in line with the 2030 Agenda and maintaining consistent growth.
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Frederic García, President, Consejo Ejecutivo de Empresas Globales (CEEG)
TBY talks to Frederic García, President of Consejo Ejecutivo de Empresas Globales (CEEG), on making Mexico a more attractive FDI destination and promoting growth and development in the South and Southeast.
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Dr. Enrique Cabrero Mendoza, Director General, National Council of Science and Technology (CONACYT)
TBY talks to Dr. Enrique Cabrero Mendoza, Director General of National Council of Science and Technology (CONACYT), on investing more in science, technology, and innovation and positioning Mexico as a knowledge economy.
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Sergio Ayala, General Manager, GIFAN
TBY talks to Sergio Ayala & Alberto Rementeria, Directors of GIFAN, on identifying and capturing niche markets in Mexico, importing healthy and profitable solutions in the food industry, and working with forward-thinking, medium-sized companies.
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Carlos Morales Paulín, Country Manager, Telefónica
TBY talks to Carlos Morales Paulín, Country Manager of Telefónica, on how to provide the best customer service on the market, an ultra-competitive suite of products, and forcing the competition to improve customer standards in the process.
read articleFocus: Digital Television Transition
Digitalizati-ON!
Starting with the first analog blackout in Tijuana, Baja California in June 2013, Mexico has achieved an effective national transition to digital television. According to data from the Federal Telecommunications Institute, 95% of the population benefits nowadays from digital terrestrial television (DTT).
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