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Market Insights Mexico

Market Insights: Mexico4 min read

4 min read

In the latest in Croud’s series of Market Insights, we take a look at marketing in Mexico; exploring the use of digital marketing and sharing the key dates for your diary. This insights report was collated with direction from Mexican Croudies on the network.

Languages spoken

The official language spoken in Mexico is Spanish, with 83% of the population using it as their first language in the country.

However, as a result of the 2002 Law of Linguistic Rights, the government places a heavy emphasis on the preservation and promotion of native Mexican languages. Therefore, other major languages spoken include Yucatec Maya, Nahuatl and Mixtec.

Important Dates in Mexico

The working week in Mexico is spread across Monday to Saturday. Whilst most of the population work on shift schedules, according to the Mexican labour law, the length of the working week is not specific to a shift. Therefore, whether it’s a day shift, night shift or mixed shift, workers often align to seven or eight hours of work a day.

Digital Marketing: Mexico

The majority of digital marketing comes in the form of PPC ads. Whilst most PPC ads are created in Spanish, some are also created in English. Video and email advertisements are often in Spanish too. Adverts are also remarketed in both Spanish and English respectively.

The predominantly used search engines are:

  • Google
  • Bing
  • Duckduckgo.com
  • Yahoo
  • Yandex

People using search engines will most commonly search in either Spanish or English.

Business in: Mexico

Economy

Mexico’s economy is worth $2.4 trillion, making it the 11th-largest in the world. Their economy has become increasingly orientated towards manufacturing due to the North American Free Trade Agreement (NAFTA) put into force in 1994. Mexico is now the second-largest export market to the US and third-largest source of imports.

Today, Mexico has free trade agreements with 48 countries, putting more than 90% of its trade under free trade agreements. Mexico’s largest industries include food and beverages, tobacco, chemicals, iron and steel, petroleum, mining, clothing, motor vehicles, consumer durables and tourism.

Greetings

It is extremely common for Mexicans to respect titles, especially towards elder generations. Therefore you may address someone only by their title. In addition, it’s common for Mexicans to prefer doing business with someone they are close with on a personal level, so developing solid relationships is a priority.

Authority

Business in Mexico is highly stratified and vertically structured, so there’s an obvious emphasis on hierarchical relationships. Therefore, rank is important and Mexicans respect authority – looking to those above them for guidance and decision-making.

Family and personal relationships

Acknowledging the cultural emphasis on one’s personal life is critical to doing business in Mexico. Family, religion and health-related events, celebrations and emergencies or any other situations within those areas are often considered a priority.

Moreover, Mexicans are known for their charisma, so building long-standing relationships in the workplace is considered a big priority. Therefore it is important to have a warm and friendly presence as directness can often be construed as being aggressive.

Religion

The main religious group in Mexico is Roman Catholicism, with 83% of the population following this religion. Other religious groups include Evangelical Churches at 5%, Pentecostal at 1.6%, Jehovah’s Witness at 1.4%, whilst 5% don’t follow any religion.

A religious celebration that affects businesses is the Day of the Virgin of Zapopan (12th November) – whilst this is not an official holiday, it can be a very busy time, especially in the city of Zapopan and Guadalajara. Day of the Virgin of Guadalupe (12th December) is also an unofficial holiday, but in recent years has become a ‘National Bank Employee Day’ to allows the banks to close on this day nationwide.

There are also local events like Semana Santa, which is celebrated on the weekend after Lent. In most cases, these types of events brings tourism, both in visitors who wish to experience the celebration, as well as pilgrims partaking in the celebration itself.

Demographics

  • There are three main ethnic groups in Mexico, the biggest being Mestizo (Amerindian-Spanish) at 62% of the population
  • The predominant age group in Mexico is 25 to 54, with 40% of the population falling within this age range
  • The average life expectancy is currently 76 years
  • The rate of population growth is currently 1.09%

Retail

Well-known retailers in large shopping malls will have opening hours from 11am to 9pm and open from Sunday to Saturday. Whilst small retailers will operate from 8am to 7pm and open from Monday to Saturday and 8am to 12pm on Sunday.

Most retail sales are made in-store, with only 2% of the total share made online. In addition, 57% of the population in work are either self-employed or work for those who are self-employed.

Interesting facts

  • Mexicans appreciate interest-free purchases deferred to monthly payments.
  • In a typical Mexican household, wives are the ones in charge of a family’s purchasing, while men will become involved in the acquisition of services or larger purchases. It is also common for family and friends to exert a strong influence on purchasing habits.
  • Mexican consumers tend to be very aware of brand names and focused on the cost-benefit ratio or product or service.

To discuss further, or to find out more about the Croudie Network, contact us.

*All opinions are directly from the experiences of the Croudies.