Overview of the Decorative Textile Market in Mexico

A Hot Tip about Textiles, Apparel and Accessories in Mexico

Posted on: 4 Mar 2010

Summary

Despite effects of an economic downtown on Mexico’s textile industry as a whole, good opportunities exist in the niche market for decorative textiles. Middle and high-class consumers are increasing demand for specific decorative textiles used for interior design, upholstery and home furnishings. This report provides an overview of Mexico’s niche market for decorative textiles.

 

Market Demand

Mexico is a textile producer, with an industry based on competitive labor costs and geographic proximity to the United States. According to the National Institute of Statistics and Geography (INEGI) 63 percent of the Mexican textile industry is concentrated in central region of the country.In Mexico, there are 130,000 textile companies: 88.8 percent micro, 6.7 percent small, and 3.2 percent medium and 1.3 percent large companies. This industry accounted for about 2 percent of total Gross Domestic Product (GDP).

 

In 1994, the textile industry benefited with the North American Free Trade Agreement (NAFTA). However, since 2001, those benefits have been diminishing due a variety of internal and external factors, such as changes in the production model and distribution channels, elimination of import quotas and inclusion of China, Vietnam and other Asian competitors in the World Trade Organization (WTO).

 

According to the INEGI the textiles segments for decoration and home furnishing comprises the following items:

1. Bed and bath linens

2. Lace and fabrics

3. Tapestry and carpets

4. Tents and awnings

 

In general 3 percent of Mexicans are part of the highest income level and looks for high quality foreign products, 18 percent in the middle income bracket buy mid-level and luxury products the lower income bracket roughly 79 percent of the population look for low end, economical products or textiles for furnishing and home decoration.

 

According to a local distributor of exclusive textiles for furnishing and decoration, the Mexican market is very competitive for high-end consumers. Not many importers and distributors have a presence in that niche market and few companies have showrooms to display their products. In most of the cases, these companies perform exclusive presentations for their clients and customers which are mainly luxury architectural firms and interior decorators (A+).

 

Currently, there are four trends of interior decoration in Mexico: Classic, Mexican, Eclectic and Minimalist. The culture of interior decoration in Mexico is growing, especially for the middle and high-end consumers. However, some clients consider that is too expensive to hire a decorator.

 

The key factors that determine the market are pricing and limited availability of high quality products at an affordable cost. Local products are cheaper but the quality is poor, and foreign textiles have an excellent quality but sometimes the price is not attractive for consumers.

 

 

Read the full market research report


Posted: 04 March 2010

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