How's Mexican Ceramics Market?

30 Dec 2016/CTW

OVERVIEW

The Ceramics industry is seen as an extension of the construction industry in

Mexico who has manufactured 242 million sqm and sold 216 million sqm of flooring and tiles in 2015.


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Mexico is one of the 10 biggest countries on ceramics production, consumption and export in the world. Also, from the number of the above table, it can be said that Mexican ceramics keeps a stable path on development.The industry expects that this positive trend will continue during subsequent years.


At present, the average age in Mexico is 25. The construction industry predicts that the population will annually demand between 700 and 900 thousand new houses over the next 15 years.


CHARACTERISTICS OF MARKET

Mexico is the 10th largest producer of ceramics in the world and the 9th largest in terms of sales. It exports approximately 11 million pieces of sanitary goods a year. Their main competitors are China, Turkey, Spain, India and Italy.


The world production of sanitary goods is estimated at 272,000,000 pieces per year and the main manufacturers are:(data in 2011)

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CURRENT SITUATION OF MEXICAN MARKET

The ceramics industry is largely based around a few companies located in the

northern states of the country. These companies are ranked among the top 20

manufacturers of sanitary ware and tiles in the word (Vitromex, Lamosa, Porcelanite, Interceramic, etc.)


The capacity production in Mexico is one of the biggest in the world.

Strategic location of manufacturing plants and warehouses within the NAFTA

region.

Mexican exports to the NAFTA region according to the North Ceramic Association:


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State of the art facilities and latest technology, equipment and manufacturing

systems in each of the manufacturing plants.



Main ceramic manufacturers divided in the following areas of expertise:


SANITARY: Ideal Standard, Kohler,Lamosa,Vilbomex,Orion,Cato,Procemex,Confort Elegante,Anfora,Porcelamex,Toto,Nacesa,Ceramosa,General de Cerámica,Cegomex,Desarrollos Cerámicos and Helvex.


TILES AND FLOORS: Porcelanite-Lamosa,Vitromex,Dal Tile,Interceramic,Cesantoni,Nitropiso,Cerámica San Lorenzo and Cerámica Santa Julia.



OPPORTUNITIES

Best prospects for the foreign companies in the Mexican market include:


Green initiative. Companies are changing and adapting their manufacturing methods to comply with acquiring environmental friendly and non toxic chemicals and products.

Energy savings in terms of kilns, materials and new technologies.

Water saving techniques and technologies in terms of manufacturing procedures and machinery. 


During the next several years, Mexico will be involved in housing projects (remodeling and construction of new, low cost, middle and upper income homes) concentrated in the most populated cities such as: Mexico City, Guadalajara, Monterrey,Queretaro, Pachuca and Toluca.


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KEY METHODS OF DOING BUSINESS

Mexicans tend to buy machinery direct from the provider in this industry, although agents/distributors can be useful for foreign companies with no representation.


38% of the market share is through agents/distributors with the rest dealing direct with the provider. It is important than foreign providers visit the market (personal relations count for a lot in this market) and after-sales and technical support is very important to the buyer.


Two main channels for selling ceramics products in Mexico exist: (i) direct (open a representative office or sell at exhibitions) and (ii) indirect (through agents/distributors). There are not many agents/distributors in this industry but many of them are based in Monterrey. They normally represent one or two brands across the country. They can also offer technical assistance and maintenance for machinery, which are valuable and essential marketing points for foreign companies to consider. They tend to have very close networks in the Industry and know when procurement from the big companies is necessary.


Articles sourced from uktradeinvest.gov.uk



This is the 311th issue.


Editor: Amie

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