Mexico Retail Report Q1 2015
Numerous Free Trade Agreements have encouraged foreign investment in Mexico boosting trade and investment, which means that the economy is relatively well developed in Latin America as is the retail sector. Entering 2015, food and drink, transport and education are three largest subsectors of the retail sector however we expect to see promising growth in other retail subsectors. Specifically, we anticipate the following sectors to increase their percentage of total household spending: clothing and footwear, furnishing and home spending, and recreation and culture spending. One important reason that we expect to see growth in these sectors is due to consumers making luxury and non-essential purchases beyond basic goods and amenities as a result of rising incomes. Furthermore, effective advertising and promotions are increasingly influencing demand for consumables in these sectors.
The proportion of the population earning above USD25,000 will rise by 45% by the time we reach 2019 and currently nearly 70% of the population earn over USD10,000. This trend, reinforced by the creation of more jobs, is causing disposable incomes to rise and as a result, consumer demand is being refocused upon non-essential items. We can see evidence that investment in these areas will be increasing in 2015 as we expect to see a number of fashion companies, who already have outlets in the country- such as H&M, open new stores. There will also be a small number of new entrants this year for example, American toy distributer American Girl are expanding into Mexico with the opening of two...
The Mexico Retail Report has been researched at source and features Business Monitor International (BMI)'s independent assessment and forecasts for the retail sector. The report examines key drivers of retail sales growth and future prospects, including consumer spending and private sector investment.
BMI's Mexico Retail Report also examines the level of development and potential for growth of the retail sector, the commercial initiatives of major players, changing consumer demographics that influence demand and the regulatory environment. Key sub-sectors include mass grocery retail, autos, over-the-counter pharmaceuticals, computers and consumer electronics.
- Benchmark BMI's independent retail industry forecasts for Mexico to test other views - a key input for successful budgeting and strategic business planning in the Mexican retail market.
- Target business opportunities and risks in Mexico through our reviews of latest industry trends, regulatory changes and major deals, projects and investments.
BMI Industry View
Summary of BMIs key forecasts and industry analysis, plus a discussion of major industry developments and a snapshot of key short-term demand-driving macroeconomic movements.
Industry SWOT Analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the retail sector and within the broader political, economic and business environment.
BMI Industry Forecasts
There are four separate 5-year forecast modules in the retail reports. These are:
Headline Retail Forecast: Total Household Spending, (US$bn and local currency, % growth, % GDP, per capita, per household); Spending by Retail Sector for: food and non-alcoholic drink, alcoholic drink, clothing and footwear, housing and utilities, furnishings and home, health, transport, recreation, education, transport, restaurants and hotels, personal care and insurance (US$bn and local currency, % growth, % GDP, % of total spending)
Retail Sector Forecast: Breakdown of Food, Non Alcoholic Drink, Alcohol, Tobacco, Clothing, Footwear, Household Goods, Furnishings, Appliances, Glass and Tableware, Household Textiles, Consumer Electronics, Garden Toys and Pets, Home and Garden tools, Personal Care, Personal Effects Spending (US$bn, % Growth);
Household Income and Numbers Forecast: Number of Households (000,% growth); gross income per household and per capita; net income per household and per capita; tax and social contributions per capita; breakdown of household incomes US$5000+, US$10,000+ US$50000+ (000, % of total); labour force, employment and unemployment (000, % change)
Demographic Forecast: Total population; Babies 0-12 months; Young Children 0-4yrs; Children 5-9yrs; Young Teens and Older Children 10-14yrs; Older Teens 15-19yrs; Adults 21yrs +; Young Adults 21-29yrs; Middle Aged 40-64yrs (000, % growth, male, female); Urban Population (000, % population); Rural Population (000, % population).
Industry Risk Reward Rankings
BMIs Retail Industry Risk Reward Rankings provide a country-comparative Risk Reward Rankings index aimed at investors in the regional retail market.
The rankings methodology makes sophisticated use of over 40 industry, economic and demographic data points.
Provides a detailed country-specific analysis of the key trends and developments in the retail sector as a whole, as well as an assessment of the main drivers affecting the major retail segments including mass grocery retail, fashion, pharmacies, consumer electronics, home improvement and personal care.
The market overview also considers the most effective store formats in a given country and the impact of these factors on the main international and domestic players development strategies.
This provides a brief overview of the key players in each subsection of the retail sector including MGR, Fashion, Home Improvement, Consumer Electronics, Pharmacies, and Department Store chains.
The Mexican retail sector looks set to remain one of the strongest in Latin America as opportunities for foreign investment will be aided by a growth in household spending. We forecast that total household spending will continue to increase over the next four years, bolstered by accelerated job creation and a rebound in consumer confidence as the country continues to make its recovery.
BMI Industry View
Headline Retail Forecast
Table: Total Household Spending, 2011-2018
Table: Retail Sector Spending (%), 2011-2018
Table: Retail Sector Spending As A % Of GDP, 2011-2018
Table: Headline Retail Sector Spending, 2011-2018
Retail Sector Forecast
Food And Drink
Table: Food, Drink & Tobacco Spending, 2011-2018
Clothing And Footwear
Table: Clothing And Footwear Spending, 2011-2018
Table: Household Goods Spending, 2011-2018
Personal Care And Effects
Table: Personal Care Spending, 2011-2018
Household Numbers And Income Forecast
Table: Household Data, 2011-2018
Table: Labour Market Data, 2011-2018
Table: Total Population, 2011-2018
Table: Population: Babies, 2011-2018
Table: Population: Young Children, 2011-2018
Table: Population: Children, 2011-2018
Table: Population: Young Teens And Older Children, 2011-2018
Table: Population: Young People, 2011-2018
Table: Population: Older Teenagers, 2011-2018
Table: Population: 21-Plus yrs, 2011-2018
Table: Population: Young Adults, 2011-2018
Table: Population: Middle Aged, 2011-2018
Table: Population: Urban, 2011-2018
Table: Mexico - GDP By Expenditure, Real Growth %
Industry Risk Reward Ratings
Latin America Risk/Reward Ratings
Table: Latin America Retail Risk/Reward Ratings
Mexico Risk/Reward Ratings
Pharmacies And Drug Stores
Industry Forecast Methodology
Risk/Reward Rating Methodology
Table: Retail Risk/Reward Ratings Indicators
Table: Weighting Of Indicators
This report does not have a list of Companies Mentioned available
This report does not have a press release associated with it