DOING BUSINESS IN MEXICO

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DOING BUSINESS IN MEXICO
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Mexico
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Mexico

• Fear of the unknown
• Language, culture
• Export paperwork
• International Insurance, Business Loans
• Budget
• Market entry

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Mexico

• 102 million people
• 1.7 population growth per year
• 62 pop between 15-64 years
• 33 pop between 0-14 years

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The Mexican Market

• Why is it important?
• 2 defined economic groups rich poor
• Poor majority does not equal insignificant market
• 30 million consumers w/discretionary income
• Concentrated in major cities
• Sophisticated shoppers
• Rich really rich 24 out of 500 richest men
  are Mexican.

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The Mexican Market

• Largest number of FTAs
• Trade US CAN tripled since NAFTA 1994
• Lots of in Mexico - Income distribution top
  20 earn 55 of total private consumption lead
  growth in past 2 years
• Actively seeking foreign participation in its
  economy no. state owned enterprises fell 1982
  gt1000, 2000 lt200

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The Mexican Market

• Exports 168 billion - 2000
• Imports 176 billion - 2000
• Infrastructure
• Airports 238 (paved), 1610 (unpaved)
• Seaports15 (major)
• Expressways 3960 miles
• Highways 56,178 miles

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Expressways
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Mode of Entry

• Exporting
• Direct Indirect
• Joint Venture
• Licensing Franchising
• Management Contracts
• Turn-key projects
• Ownership arrangements
• Foreign Direct Investment

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Challenges/Success Factors

• Foreigner
• Language Barrier
• Work approach
• Relationships

• Perception Skills blending in
• Few words
• Access to high levels business etiquette
• Networking

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Mexican Flag
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Doing Business in Mexico

• Conscious of history and tradition - proud and
  patriotic
• Patience is advised - skeptical of foreigners in
  their country and business
• Despacio que tengo prisa
• Establish reputation by keeping every commitment

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Business Savvy

• Initial contact with key decision maker
• Networking opens doors
• Chambers
• Government contacts
• Before Research Recommendations

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Business Savvy

• Telephone or verbal? In writing, email or fax
  follow up
• Need signature for agreements
• Translations translators - avoid mistakes
• Do you really speak Spanish?
• Advertising - hire a professional

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Business Savvy

• Direct selling
• Control over product
• Expenses staff inventory
• Branch office
• US trained personnel in control of ops
• 183 days over 12 month-period

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Business Savvy

• Broker/Representative
• Familiar with your market
• Not exclusive
• Master distributor
• One client, large shipments
• One more on his list?

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Business Savvy

• Joint venture
• Ownership position in your business
• Finding Mr. Right

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Business Protocol

• Non-smoking areas - unknown
• Who pays? Whoever extended invitation
• A woman NEVER pays.
• Refer to people by their prefix
• Prefix, First Name, (Middle name), Paternal Last
  Name, Maternal Last name

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Business Protocol

• NAME
• Maiden
• María (Elena) Gómez Ramírez
• Address
• Lic. Gómez / Srita. Gómez
• Married
• María Elena Gómez de Rodríguez

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Business Protocol

• ETIQUETTE
• Woman enters room - stand up
• Carry plenty of business cards
• Dont be hyperactive
• Dont look at the watch constantly
• allow at least 2 hours per meeting ( traffic)
• Be on time, expect others to be late

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Business Protocol

• ETIQUETTE
• Personal space closer
• Touching, hugging, kissing
• Louder
• Hand gestures

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Business Protocol

• ENTERTAINMENT
• May or may not discuss business
• Avoid talking about income, status, investment
  historically sensitive topics
• Watch out for altitude alcohol!
• Dining takes long, no rush
• Different hours - snacks

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Business Protocol

• Weekly Schedule
• 800-900/1000 Breakfast
• 1000-200 - Office hours
• 200-400/500 - Lunch
• 430-600/700 - Office hours
• 700-900 - Cocktails, happy hour
• 900-Midnight/beyond - Dinner