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With an appealing market, Mexico opens its doors to new investors

March 14th, 2018

Large cities, a growing population, flexible business rules and wide use of social media make Mexico one of the most important markets in Latin America. In order to get a better sense at its opportunities and challenges, we took a close look at Mexico, with key tips for investors exploring new markets.

Mexico has a total population of 130 million, which makes it one of the largest markets in Latin America. Most of the population is concentrated in big cities such as Mexico City, Guadalajara and Monterrey, with eight, five and four million inhabitants respectively. Other smaller areas have also been on the eye of investors such as Baijo and Chihuahua.

With a growing population and large cities, Mexico could be a land of opportunities for investors.

Internet usage is high and expanding. Up to 85 million people are connected to the internet, an average of eighty hours a day. More than 70 percent use it through a mobile decide, followed by notebooks and televisions. Android is the most chosen software, with 91 percent of the mobile users with a phone running with that system.

Social media doesn’t lag behind, with 83 million people in Mexico connected to at least one platform and 64 percent using it actively. The largest networks are Facebook and Youtube, with 59 and 58 percent active users respectively, followed closely by Instagram, Twitter and Google.

Youtube has grown to become the main video platform in Mexico. At the same time, people have also become appealed to watching videos through Facebook. Up to 48 million people watch an average of 112 videos a month in the country, with the most popular ones being the how-to-do videos.

While it was seen as almost impossible a few years back, starting a business has become extremely easy in Mexico thanks to a set of government plans. Nevertheless, there are still challenges ahead such as corruption, bribery and an unequal distribution of wealth. Many people still don’t have a bank account, specially outside large cities, and public delivery systems can be problematic.

Overall, Mexico can open new opportunities for businesses seeking to expand in Latin America. Nevertheless, as challenges remain, working with a local partner could avoid running into problems that would likely arise.

You can find a list of the available agencies to contact with from Mexico here.