top of page

Why a Commercial Assessment of your company in México Is Crucial?


Mexico Commercial Evaluation

The manufacturing sector in Mexico is a critical component of the country's economy, contributing significantly to its GDP and employment. In the context of changes in the environment, in market demand, and the technological advance of your competition, carrying out a reliable commercial assessment of your company and establishing your competitive advantages against the benchmark becomes essential.


Any company valuation process typically involves a detailed evaluation of a company's financial performance, market position, and future earnings potential. However, manufacturing companies in Mexico face specific obstacles that increase investor risk. These challenges arise, for example, from the high participation of the Traditional channel in the total volume of consumer manufacturers, the clear variations in the demand for products by region of the country, and the challenges of distribution and logistics in some regions, without taking into account the influence of the USA in the country's economy.


Economic fluctuations and political instability challenge any company's ability to deliver results.


In 2024, Mexico is undergoing significant economic and political changes, which has implications for its governance and economy. Companies must be agile, flexible, and prepared to face the challenges arising from economic fluctuations and political instability.


The commercial team's ability to anticipate and adapt to these changes will be crucial to achieving sustainable results in such a dynamic environment.

Specifically, the company must be able to quickly adjust its prices, policies, supply chain and even the distribution and sales model in the event of potential protests, marches or political events in this election year that affect coverage levels and availability of products on the market.


The Commercial Assessment in México includes the validation of the knowledge, processes, and tools necessary to compete and win in an omnichannel operation.


The evaluation of companies from a commercial perspective also requires establishing a comparison with other manufacturers and also the main clients or key accounts since the majority have already adopted new technologies to increase the proximity of their products and services to the end consumer, improve the purchasing experience and, therefore, accelerate the growth of your sales.


In 2023, the e-commerce market in Mexico reached US$74.5 billion, representing 34% growth over the previous year. Furthermore, electronic commerce in Mexico experienced sustained growth, with an increase of 24.6% compared to 2022, reaching a value of 658.3 billion pesos. This positions Mexico as the market with the greatest growth globally in the field of electronic commerce.


In 2024, Mexico's technology sector is set to grow significantly, driven by advances in artificial intelligence (AI), supported by a combination of government initiatives, private sector investment, and a focus on digital transformation.


The Commercial Assessment of Your Competitive Position in the Traditional Channel


The universe of traditional channel stores in Mexico includes more than 1.2 million points of sale, generating approximately 2.5 million jobs. This channel is crucial for the Mexican economy, representing between 130 to 170 billion pesos in disposable income for its owners and/or employees and 155 to 175 billion pesos in taxes for the government.


Sales in the traditional channel are significant for large consumer product manufacturers in Mexico, representing in some cases more than 50% of sales in product categories such as alcoholic and non-alcoholic beverages, fresh and packaged food.


To dominate this channel, the manufacturer must have a solid logistics network that allows national access, either directly or through distributors and wholesalers.


It is important not to underestimate the impact of evaluating logistics capabilities during commercial assessment in México.


Conclusion

A commercial assessment of companies in Mexico is necessary to guarantee the competitive advantages to better face a difficult year, with large economic fluctuations, political changes, monetary volatility, potential interruptions in the supply chain, and increased energy and logistics costs, among other challenges. It is essential to conduct a comprehensive analysis of the market and competition with a focus on the end customer and consumer to address these challenges.


The TMC Consultores team can help you implement a Commercial Assessment of your company, to guarantee the success and long-term sustainability of the business.

6 views0 comments

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page