Investing in the Mexican territory is a very attractive option for foreign companies that want to consolidate their operations and continue to grow in Latin America. The possibility to venture in slowly takes advantage of the many advantages of proximity to Canada and the United States. those markets.
Despite the crisis caused by the COVID-19 pandemic and the constant changes in the market, Mexico is seen as a solid country to invest in. According to the Ministry of Economy, it was received between January and September 2022. $32,147 million in foreign investment Straight, which means an increase of 29.4% over last year. Of this amount, 45% correspond to new companies.
Consolidating a product or service in a new country can be a very complicated task if you don’t have an effective entry strategy, which is why we share five basic pointers for a successful soft landing.
1. Market Research
Mexico is a very large country and each region has different needs. Depending on where the company is based, careful analysis is necessary to know cultural characteristics, consumer desires, as well as competitors and existing regulations.
“It is important not to come empty-handed. Before launching any strategy, it is important that we know what particularities we will face in the new market: its consumption habits, who are the main players, if there is anything that We must take into account, among other things, the legal sector, advises business consultant Alejandro Alberto Zubiria.
2. Legal Scope
As in any part of the world, there is a regulation that cannot be ignored, it is essential to seek advice from experts who verify that the legal conditions are sufficient to be able to establish themselves and that the registration process and guide the company through compliance. With rules to remove any obstacles.
There are labor, tax, data protection laws, etc. to avoid legal problems. For example, what is the tax system that matches? Is it necessary to set up a Mexican company? What benefits should be provided by law to the employees? What permits are needed?, among other issues.
3. Strategic alliances
Collaborating with local companies and identifying reliable partners provides a clear vision of the local market, improves efficiency in terms of logistics and distribution while helping to reduce production costs and improve the quality of products or services . It is about building win-win relationships, wherein the weight of a local brand pushes the new actor in return for exclusive contracts, shares or any other benefit.
A major cultural aspect when doing business in Mexico is the weight of personal relationships and trust. It is very common to establish long-term alliances based on personal relationships before signing commercial agreements, hence the importance of first “friendly” approaches to potential partners through social or business events or through common contacts.
4. Marketing
The key is to precisely identify the profile of the potential customer you want to reach and thus define a marketing strategy that allows you to know which are the appropriate communication channels to obtain product information.
According to a national survey on the availability and use of information technology in households, WhatsApp is the preferred social network among Mexicans, with 92% used by Facebook, so it is important to generate marketing strategies in social networks to connect. with the audience.
You can also choose to work with local agencies who already know the market trends, initially of great help in creating campaigns according to the Mexican ethos and language and presenting the brand in the most effective way.
5. Infrastructure
Having enough infrastructure will make the operation viable and cost reasonable, the digital, physical and transportation part must be taken into account to guarantee the viability of the project.
For example, according to the State Digital Development Index, Mexico City is 57 points above the state of Chiapas in terms of digital infrastructure, or 52 points above Nuevo León Guerrero, in terms of technology adoption by companies. These details are important to keep in mind when deciding to set up a new company in the country.
Similarly, the strategy should assess whether alliances are necessary to ensure the supply of essential services such as electricity and internet. Or if, on the other hand, it is worth investing in developing that missing infrastructure. In the case of technology or logistics companies, this can be an important starting point for closer collaboration with governments.
(translate to tag) Mexican Exports
