Mexican Shoes and Globalization.
Mexico currently finds itself in a new wave of globalization, which for many is the natural impact of two processes: trade and innovation. This has been a factor in worldwide stability during recent years which has boosted the exchange not only of goods and services, but of ideas, people, information and capital too.
What advantages does Mexico have with regard to globalization?
Mexico benefits from globalization with 12 free trade agreements in place that span 49 countries. Mexican footwear has already conquered some of these countries with its exports and the industry is aware that Mexico must transform itself to conquer even more. One of these solutions is to focus on niche products, such as boots, leather footwear in general or textiles. These types of footwear have high sales figures, both nationally and internationally.
Another benefit is the efficient movement of people to work wherever there is a demand for labor and qualified workers, whether for demographic or economic reasons. The footwear sector of the state employs around 80,000 people in 2800 factories. According to the CICEG, the trade association for the footwear industry, in small cities like San Francisco del Rincón, in Guanajuato State, the industry represents 80% of jobs in the private sector.
70% of national production is manufactured in the state of Guanajuato, thanks to its location, costs and inland port, which is the most important in Latin America, as well as its roads that make exporting more accessible and safer.
Why does globalization help the USA or Canada to buy in Mexico?
Mexico can manufacture long-lasting footwear that will be less costly than Asian products in the long term. The Coordinator of Foreign Trade Development (COFOCE in Spanish) and the Association of Mexican Industrial Companies (APIMEX in Spanish) are forming connections with globally recognized companies like Nike and Under Armour with suppliers based in Guanajuato that meet their specifications and can become partners in the medium term.
This is not the first time that one of the groups has approached the suppliers in Guanajuato state, the most important center for footwear manufacturing in Mexico. Last September, both Nike and Under Armour found partners that met their quality standards and specific certification requirements to supply shoes made in Mexico to the United States and Canada.
As well as sports brands, in recent months, other international groups like Kenneth Cole and ADOC have shown interest in factories and suppliers based in Guanajuato.
Mexico maintains its position as the largest trade partner of United States, replacing China, specifically as a large potential exporter of Mexican footwear and leather goods. Other countries that have also noted this potential are Canada, Finland, Guatemala, Uruguay, Chile, Colombia, Costa Rica, Peru, Japan, El Salvador and Italy. Footwear is not the only fundamental player, the leather goods industry is also growing in exposure and demand among international markets.
It is also important to mention that in the first quarter of 2019, leather goods exports reached a value of 10.9 million dollars and a total of 73 companies of this sector showed sales abroad with a workforce of 13,000 people.
Guanajuato is currently the main manufacturing state of footwear in Mexico. According to official figures, 71.28% of the total value of national footwear production in Mexico comes from this region. In the first quarter of 2017, suppliers based in Guanajuato exported 3.4 million pairs of shoes, generating a revenue of over $59.5 million, representing 56% of national exports of footwear in value and 63% in volume according to figures from COFOCE.
The footwear industry in Mexico in undoubtedly a huge business opportunity, because it encompasses the keys of a successful product. It is an industry that is highly experienced in manufacturing, design, trends and innovation. This means that Mexico specializes in footwear of added value and first-class quality.