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Home > Country profiles > Mexico > Distribution channels

Distribution channels

Drapeau from Mexico

Mexico

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Distributing a product | Distance Selling | Organizing goods transport

Distributing a product

Evolution of the sector
The three large commercial zones of the country are: the capital (Federal District) and its suburbs, Guadalajara and Monterrey. There is acute influence of the United States on consumer habits in the big cities. However, it is important to take into account that 20% of the population lives below poverty level and more than 58% in precarious conditions.
Market shares
The rise of the middle class in recent years has considerably increased the importance of the large-scale distribution sector provoking a decline on the traditional trade. Supermarkets have taken a great space: Wal Mart de México, Mexican Commercial Controller and Giant Group are the main Mexican groups in terms of large-scale distributors. Organización Soriana and Chedraui are provincial chains. 
The concept of mail-order selling and teleshopping is rapidly increasing.
Organizations in the retail sector
Ministry of Trade and Industry - Ministry of Economy
Directory of Wholesalers and Retailers in Mexico
Retailing in Mexico - Euromonitor
 

Types of outlet

Supermarkets
Commercial establishments of self-service offering food products, personal care items, clothing, home supplies.
Wal-Mart, Comercial Mexicana, Soriana, Chedraui
Speciality Stores
Huge areas where one can find special products: hardware, linens, furniture, home remodeling items, stationary, electronics and toys.
Home Depot, Hermanos Vázquez, Viana, Home Mart, Lumen, Office Depot, Juguetibici, RadioShack,
Department Stores
Large stores that sell famous brand names, national and international products: clothing, perfumes, footwear, home supplies, electronics, gourmet foods.
El Palacio de Hierro, Liverpool, Sears.
Discount Stores
Self-service stores that offer good quality products at  wholesale and retail prices.  They  require customer membership.
Costco
Shopping Centers
Spacious areas, located in busy sections of the cities, which group together stores and service establishments: supermarkets, department stores, banks, beauty and health spas, movie theaters, restaurants and fast food places.
Galerías Insurgentes, Centro Santa Fe, Galerías Metepec, Galerías Tabasco, Plaza Antara Polanco
Markets and "Tianguis"
Areas reserved for merchants to offer their goods: personal care and esoteric products, plants and flowers, fresh produce, cooked food and handicrafts.  Prices are very reasonable.

 

 

"Tianguis" are groups of merchants that install themselves in a particular place one or two days per week and they offer products similar to the ones found in big markets.  Their prices can be negotiated.
Mercado de Sonora, Mercado de la Merced. Tianguis de México.

Corner Stores
64% of personal shopping supplies can be bought at these small establishments where merchants offer products of daily household use and consumption at reasonable prices and provide personalized attention. They also offer advice to their loyal customers.  They sell: food products, dry goods, stationary, flowers, tortillas, hardware, etc.

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Distance selling

Most popular forms of direct marketing
Catalog, teleshopping or sales by radio, telemarketing and Internet sales.
Type of products
All types of products, especially beauty products, cosmetics and food items.
Evolution of the sector
The distance selling sector has become more dynamic and sophisticated.
Electronic commerce has mainly developed in the B2B form (Business to Business).  This type of business represents 77.5% of electronic commerce while  the B2C form (Business to Customer/Consumer) only represents 22.5%. The sectors that have strongly developed their market through e-commerce are the sectors of  finance, retail trade and manufacturing.
Other direct marketing companies
Catalog Sales in Mexico
Direct Marketing Mexican Association
 

Big names in distance selling

AVON Direct sales by catalog or at home. Beauty products, make-up, perfumes.
Free Market Mexico Sales by Internet Books, records, electronics, telephone systems, clothing, home supplies, musical instruments, animals, art, antiques, etc.
Liverpool online Sales in stores and Internet Clothing and beauty items, accessories, prestigious brands perfumes, electronics, gourmet foods.
Paguito.com Internet Sales Computers, cameras, hardware
Tupperware Catalog and home sales Kitchen supplies and food preservation containers.

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Organizing goods transport

Main useful means of transport
Transportation of goods by road insures more than 50% of commercial freight. The road network is vast (355 796 km).
Maritime international trade goes through the ports of Lazaro Cardenas, Manzanillo, Veracruz,  Dos Bocas and Cayo Arcas.
The railway is mostly used for transporting large volumes of goods to the main ports and borders.
Air transport of goods is going through a difficult period due to the lack of infrastructures and the price of fuel.
Ports
Ports of Mexico
Airports
Mexico's airports
Sea transport organizations
Ministry of Communications and Transportation -
Port and Marina Mercante

Air transport organizations
Ministry of Transportation, Communications Infrastructures, and Civil Aeronautics
Road transport organizations
Ministry of Transportation, Communications Infrastructures, and Civil Aeronautics
Rail transport organizations
Ministry of Transport, Communications Infrastructures, and Civil Aeronautics - Rail Transport

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Last updates: September 2010

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