Outsourcing Sales to Mexico

How to invest in Mexico without losing time and money

Expanding into a new market can be one of the most effective ways to leverage your business. However, there are many considerations and challenges an organization needs to face to achieve this goal. For example,

• Do you know the laws and regulations?
• Is the corporate and business culture different to your home country?
• Have you adequately assessed your operational needs to ensure
  success and growth?

It’s no secret that many organizations are afraid to establish a new infrastructure in Mexico to grow their business, yet Mexico has great potential for any company to increase their sales.

The big question is how to do it without investing too much money. Many companies have opted to go to market by establishing distributors. While in many cases this gives you a way into the market, you still need a management infrastructure to manage that channel of sales and finding the right partner that aligns with all your criteria is challenging.

Many companies can only afford an individual, which if hired in country, does have some degree of success, but barriers such as language, miscommunication among clients and supplier, marketing, business development etc. cannot be overcome by just a single person.

So, what might be a solution? Outsourcing to an in-country service support organization that can be an extension of the manufacturer.

Nearshoring your business infrastructure to an in-country service will allow you to dramatically reduce costs by relocating business, operational, or supporting processes.

What can an outsourcing company provide a manufacturer as a way to develop a business in a foreign country?

An in-country organization can bring many benefits to its clients such as:

• Understanding the bureaucracy /regulations of the country
• Understanding the business culture
• Speaking the language and knowing what the appropriate way is to convey its client message in a way that can be easily understood on the basis of cultural needs and way of doing things.
• Help with market segmentation.
• Search and hire the correct channel partner for the promotion of its client’s products

Biggest Advantages expected from a Near-shoring decision According to External Manufacturing Costs Index 2013 from the consultancy AlixPartners

• 13 Treaties for free trade.
• Strategic geographic location.
• Stable macroeconomics.
• Demography (48% of the Mexican population is less than 26 years old).
• Low transportation costs.
• Time zone.
• Better control of operations.
• Greater organization with suppliers.
• Higher market speed
• Less cultural gap compared to China.