According to one of the studies conducted by PwC on US companies investment and expansion plans, our country is one of the top 10 destinations for new businesses.
Not only that: during the first half of 2017, foreign investment increased almost 10% compared to the same period of the previous year. Among the countries with the largest participation in Mexico we can find the United States, Spain, Canada, Germany and Japan.
In contrast, in a study published by INEGI regarding the creation and decline of new businesses, we can observe that in a period of 36 months, the increase of commercial establishments openings in Mexico was 28.3%, while the closure of the same ones represented 22%, which highlights the enormous challenge that brands and companies have to face to become success cases.
As part of a prevention plan, I will introduce you four of the worst mistakes companies make and should avoid when they arrive in Mexico. Unfortunately they are very common:
I.- Lack of understanding of Mexican consumers
Mexico is undoubtedly one of the most diverse markets in Latin America in relation to the behavior of its consumers. In the same place, we can find enormous economic, cultural and demographic differentiation. If the goal is to introduce a product or service nationwide, often what could work for the northern region of the country, is not the most appropriate for the southeast.
Consequently, before executing any communication plan, we must understand and analyze how our target speak, how they think, what communication tools they use, their feelings with the current situation and how they develop socio-culturally. Without previous explanation, it is likely that messages and information will not connect properly with this audience, so brand and communication efforts will not be efficient.
II.- Standardization of global communication in a local market
One of the most common mistakes made by brands when arriving in Mexico is to try to implement global communication without adapting it in proportion to the cultural context, which can lead to fatal consequences: