DAVID DÍAZ

Mexico 2020 | INDUSTRY | VIP INTERVIEW

TBY talks to David Díaz, Mexico Branch Manager of Uline, about e-commerce growth in Mexico, other growth sectors, and the outlook for the coming year.

Uline is a US-based company that has a strong presence in Mexico. What does the Mexican market represent in terms of current and future business?


Uline is a leading distributor of shipping packaging and industrial supplies in the US, Canada and Mexico. We started in Mexico twenty years ago by opening our first distribution center in Tijuana. The Mexican market is important for Uline. Currently, we have two distribution centers; one in Mexicali and another in Monterrey. The Mexicali distribution center measures approximately 300,000 sq. ft., while our Monterrey facility is around 500,000 sq. ft. We also have two sale offices located in Tijuana and Mexico City. 

E-commerce in Mexico has been growing in the double digits recently, with still much untapped potential. How is this trend impacting Uline and your future strategies for the local market?
As an internet and catalog company, the e-commerce growth trend is vital to us. In Mexico, we have seen a huge change over the last 10 years. Almost everyone has a cellphone, a computer or access to one, and there is more access to the internet. Mexico has internet companies providing services to practically the whole country, which makes our website available to everyone. We see the exponential growth of internet businesses and e-commerce in general.

In which sectors do you see the most opportunity for growth in terms of Uline's products and services?

Sectors like the pharmaceutical and medical areas will continue to grow. The hospitality sector has also continued to progress. Aerospace is another sizeable market that will maintain its growth, especially in areas such as Chihuahua, Querétaro, Nuevo Leon, and parts of Baja California and Juarez. All these industries are particularly important for us because they look for a large selection of quality products, quick delivery, and excellent customer service. They are looking for reliable suppliers. In Mexico, if you analyze industry needs, 60% of companies continue to import instead of using local suppliers. Only 40% of industry needs are fulfilled by local suppliers. That is a large market, and we are going to see more people come to serve this market.

What is your outlook for the remainder of 2020?

Uline's model offers the finest quality and selection of products, with the quickest and most efficient service in the industry. While Uline has found success over the last four decades, and we want to continue to grow our model in 2020. There are more than 4.5 million different sized businesses in Mexico, and everyone can find something from our catalog. We will continue to penetrate the market on all levels. We will continue to send our catalogues to the whole country to ensure we reach as many people as we can. We will continue to promote our website because it is a great tool for all companies, and even more so for PYMES. Since opening our Mexico City sales office in 2019, we continue growing our presence there. We also want to continue growing our presence in northern Mexico. Mexico is a colossal market with many needs in terms of investiture, and I hope investors continue to increase their level of confidence in the Mexican market. We have good people. We are well-prepared, with many technicians and engineers coming out of school ready to work and we need jobs for those people who are newly graduated.