In view of fierce competition and declining profit margins of the established markets, many companies are anxious to develop emerging markets. On the back of limited production of consumer products in Mexico and the recent reduction and wavier of anti-dumping duties against Chinese products, Hong Kong and mainland companies should note the emergence of Mexico as an important consumer market in Latin America, and get acquainted with the country’s business environment and potential trade opportunities. Hong Kong’s trade with Mexico has grown fairly speedily in recent years. Over the period 2003-2007, Hong Kong’s total exports to Mexico soared by 74% or a CAGR of 15% between 2003 and 2007.
This upward trend reflects not only Mexican consumers’ ready acceptance to Hong Kong products, but also their importers’ positive perception towards Hong Kong as a reliable sourcing platform. Following the continuous improvement in purchasing power and living standards among Mexican consumers, Hong Kong and mainland companies, which are well-known for their price-competitive and quality offerings, are well placed to win business from Mexico. In particular, electronics, toys and games, watches and clocks, and footwear are, among many others, products with lucrative growth potential. Despite a recent relapse, Hong Kong’s garments are still sought after in Mexico, while jewellery items are expected to become better received in coming years.
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