Mexico: building a global brand footprint
Mexico has in recent decades become one of the world’s most vibrant and stable economies. Its promising future has been underscored time and time again. The New York Times has stated that Mexico is set to become one of the most dominant economic powers of this century. Financial-services firms such as Accenture, Goldman Sachs, HSBC and PricewaterhouseCoopers suggest Mexico will be between the fifth- and eighth-largest economy in the world in years to come.
A portion of Mexico’s rise has been supported by concerted marketing efforts. This is also why the country ranks in the top 10 of Tomorrow’s Leading Country Brand Index published by marketing-strategy company FutureBrand.
Mexico’s economic performance and positive branding are also a result of its competitive advantages. The nation is a global logistics hub and export platform with a strategic location. It is a leading producer of advanced manufacturing. It has a highly qualified and growing population, which makes for an attractive internal market. These factors allow Mexican brands to flex their muscles at home and abroad.
Two decades ago Mexico embarked on a process of embracing free trade as an engine for growth. The paradigm shift for Mexico’s economy, society and political landscape came in 1994 with the North American Free Trade Agreement (NAFTA). As a result of that trade agreement with Canada and the United States of America, Mexico today is one of the most open economies in the world as well as a leading exporter. This shift in the country’s economy also became a game-changer for Mexican brands.
ProMéxico, the government agency in charge of enhancing the internationalization of Mexican companies, is promoting an unwavering strategic focus to strengthen the country’s business presence abroad. The export of products and services has undoubtedly contributed to the country’s economic and social development.
It has helped strengthen Mexico’s competitiveness, which raises its level of recognition as one of the best business destination in the world. The success of the country’s beer industry is a case in point. In 1995, just one year after NAFTA was agreed, Mexico exported US$ 310 million worth of beer while in 2013 around US$ 2.2 billion worth was exported. That surge has placed Mexico as the world’s number one exporter of beer with a global market share of more than 16%. While marketing has played a major role in the rise of Mexican beer, so too has an open economy. This powerful combination has led to Mexican companies dominating the 2014 list of the most valuable brands in Latin America as published by marketing strategists Millward Brown. Mexican brands account for one-third of the total value of the Latin American region’s companies.
The secret to this success stems from the ability of Mexican companies to transform local success into global success. This was made possible through network of free trade agreements with 45 countries, which represent more than one billion consumers across the world. This is not just a fleeting moment. Well-established Mexican brands as well as new ones are gaining momentum and continue to succeed in new markets. The country’s macroeconomic stability, profound structural transformation and competitive advantages will assist Mexico in remaining a leading exporter. This positive outlook will be closely tied to our brand’s performance.