Tips on how to start a business in the Mexican market

The successful entry into the Mexican market is not completely different from establishing sales channels in the United States, according to the US Department of Commerce.

Mexicans prefer regular direct communication, especially in the initial stages of establishing a good relationship. Photo: Pixabay
Mexicans prefer regular direct communication, especially in the initial stages of establishing a good relationship. Photo: Pixabay

In general, the strategy should be based on the establishment of an authorized agent, representative or distributor for the products and services that are to be sold in Mexico, or the opening of a representative office.

Given the size of the market, the strategy must consider specific regional territories. Most companies assign Mexican agents or distributors in different locations.

Many companies are happy to use three or four specific territories, often centred in Mexico City for central and southern Mexico, Guadalajara for western Mexico, Monterrey for northeastern Mexico and Baja California for the northwest border and the maquiladora.

To sell to the government, it may be important to have an office or a local representative.

Meanwhile, for regulated products or services, such as healthcare solutions, you will also have to give time and use local support to obtain regulatory approvals.

Beyond your efforts to establish representation, organize it in territories and obtain approval of regulated products, the promotion plan should be considered.

Trade fairs, advertising, social media campaigns and sales calls work well in Mexico, recommends the Department of Commerce.

Mexican buyers are generally price sensitive, and government buyers have strict rules to favor lower price offers, so establishing an effective price structure is key.

Legal advice, protection of intellectual property, sales, shipping and after-sales support must be elements of the strategy.

Tips:

To do business in Mexico, it is crucial to develop and maintain close relationships with customers and partners. Mexicans prefer regular direct communication, especially in the initial stages of establishing a good relationship. Email is widely used and platforms like WhatsApp are very popular for quick interactions.

Mexican consumers, in general, have a lot of knowledge about the products and services of the United States. Due in large part to the proximity to the United States, American popular brands are widely recognized in Mexico.

The US Commercial Service can evaluate the market potential of products and services, advise on export strategies and facilitate commercial agreements with potential clients and/or partners through its three offices located in Mexico City, Guadalajara and Monterrey.