Since 1998 "Mexico Franchising Opportunities" have been a stable and growing industry in Mexico generating over 800,000 jobs and now represents 6% of GDP. Mexico has also become a mature market in the franchise sector and has also expansion of franchise concepts to other countries in Latin America, the United States and Asia.
In 2007, franchises generated sales over 8 billion USD of revenue. The sector has been proving that the franchise business is an important source of job creation, self-employment and wealth. The sector has strengthened considerably in the past few years, positioning Mexico as the 8th leading nation worldwide in franchise development. Conservative estimates indicate that this sector will grow between 14-16 percent in 2008.
Best Products and Services
Food concepts lead the industry, with QSR concepts and casual dining restaurants the most attractive concepts for Mexican investors.
However, there are many other sectors that are growing rapidly and successfully in the Mexican market. Education / entertainment services for children and personal care services (spas, beauty shops, health care centers) are considered as best prospects for the coming years.
Market Opportunities
- Before entering the Mexican market, it is important to note the following:
- Type of Franchise model appropriate for Mexico
- Potential of the market, Product/Service acceptance
- Training / Support capabilities (Language, resources)
- U.S. concepts may not be as popular as in the United States for Mexican customers; be prepared to adapt your products/services to the Mexican culture.
Franchising in Mexico, as in any other country, requires a long-term commitment. The U.S. franchisor must commit human and financial resources, patience and time to make its concept succeed in the Mexican market.
U.S. franchises must be aware that since the Mexican market is dominated by local franchises, a requirement for a successful franchise concept in Mexico is to adapt or customize the concept and characteristics to Mexican tastes. |
