Access to information is restricted because management of private companies are not always open to sharing information.
As with most emerging markets, market sophistication is not uniform in Mexico.
For instance, while our models suggest that the finance function is fairly mature in many Mexican companies, benchmarking data is still hard to find. Logistics are quite advanced, particularly near the US border; yet corporate risk management is unevenly developed.
Of course, at the same time, all those shortcomings are also opportunities. We talked to Fernando Garrido, Advisory Ernst & Young (Mancera SC) Leader in Mexico, about what foreign investors should expect.
Limited access to benchmarked information
The high percentage of private, family-owned companies can make benchmarking information difficult to come by, says Garrido.
“Access to information is very restricted due to the fact that the management of private companies are not always open to sharing information either internally or externally, even when companies have hired firms to make this type of maturity assessment,” he says.
A leader in logistics
“Mexico has a privileged location,” says Garrido. “Mexico is the portal to the Latin American markets because of its geographical location, but also because of the more than 44 free trade agreements signed with the most important economies.”
Some aspects could be improved. Mexico is working to enhance its infrastructure, not only building new roads, but also enhancing the customs procedures and better logistics in railroads and seaports.
Savvy customers
Not all the opportunities are export-focused. The fast-growing domestic market is also of increasing interest to global markets. However, seller beware: consumer savviness at the same rate. The Mexican consumer is should not be underestimated, Garrido warns. “Customers are demanding more from the companies that they interact with,” he explains.
“They are more informed and have more choices than ever before. They want you to know them better, interact with them more effectively, and provide superior customer experience. Improving information quality and accessibility for decision-making is a competitive advantage, a competitive necessity.”
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