For 20 years of participating in the world of flowers, plants and trees, I have known through articles, conferences and meetings, of many levels, the constant idea that Mexico is the giant asleep in the world of ornamentals. Frankly I also believe it and I have said emphatically in different forums where I have been invited.
by Arturo Cárdenas
Mexico is the world's number 15 economy with 12 free trade agreements with 46 countries, 32 accords for the promotion and reciprocal protection of investments with 33 countries and 9 limited-scope agreements (economic complementation agreements and outreach agreements partial) and the home to one of the richest men in the world. Talking about the ornamental field, this country has 22700 hectares dedicated (third place worldwide!!), a powerful internal market with almost 130 million inhabitants, with 10 cities very important in terms of population and economic activity and an Important road and airport infrastructure. In addition to a privileged geolocation, being located next to the important market of the United States of America.
What happens with the exports?
Although it is true that Mexican production is oriented, primarily, to domestic consumption, which satisfies the large market of Mexico (easily accessible), which has an excellent level of prices and where the lack of business culture and export does not offer to the growers a great attraction for taking this option. But we must also consider that most of the offer is in no way attractive to the international buyer and neither, in many cases, for the local professional buyer (although they buy it, has no option).
Of course, that is true that in Mexico exists companies that offer products with export quality and there are examples of entrepreneurs, that are really appreciated inside Mexico and by their international buyers. Although these are few and where on the big dates of the market we can see many clients, local florists and international buyers, frustrated when they cannot find their product available to them.
Reality is, that most of the growers in Mexico observe many deficiencies that necessarily affect the quality, price and opportunity of their products and that well understood (the deficiencies) must be the opportunity areas to attend by the Businessmen and the government.
The flowers and plants produced in Mexico (mostly) do not present optimal levels of quality derived from the nonutilization of the best methods and care in the stages of production and post-harvest, to which must also add the inadequacies in the cold chain and reception.
The culture of advanced production and adequate consumption is almost non-existent. However, the local market is immense and noble with the producers and their offer (it consumes everything that you give it). This is because one of the strong motivators of the buying is cultural and consumption is not associated with the level of well-being. Moreover, the consumer has not learned or educated in its consumption (the vast majority) of the levels of optimal quality, service and opportunity that exist in more developed markets and that as this happens will affect the level of appreciation of the local offer.
The above mentioned, and must be clear to the local grower, will not be forever. In a globalized market with aggressive competition, interconnected and with a whole generation of new entrepreneurs with aspirations of take an important place in the market these conditions will be more than obvious.
Today in Mexico we find consumers, professional and final, informed. Those who fight daily with the offer in terms of quality. They also must face the problems of a lack of commercial structure, bad marketing practices and a zero use of marketing strategies. Channels of marketing, insufficient, insecure and with difficult access. What leads many entrepreneurs to leave ornamental and where the beneficiaries are those dedicated to the informal economy, which and as we all know affects the level of appreciation of goods and does not offer a real social or economic value to any nation.
Also, in Mexico, there are many other entrepreneurs who overcome all the drawbacks. Buyers who overcome all these obstacles that come from the production and its commercial structure. Business buyers that are really trained and at the height of any mature market and which will not be loyal with local offer in those terms, if there is another option at their fingertips.
Although all the above could be an unfriendly writing for many, the exposed, in fact, shows countless requests to attend (areas of opportunity) for professional interest and for public service in an industry which, more than proven, that generate richness where it is practised.
However, and as in all, it requires discipline, knowledge and a true will. The risks to the national industry are already exposed. The local and international consumers will be increasingly demanding, and the real internal and external entrepreneurs are on the lookout.
Of course, Mexico is an attractive and great market, where it is important to participate. It is enough to observe the levels presented by the practice of the protected agriculture that offers products with quality of export and where originally many of the international suppliers that serve it, approached to Mexico in principle for searching the ornamental activity. In addition, the frameworks offered for international investment, by the different Mexican states, are competitive in international terms.
The observers can distinguish that today Mexico is attractive for serious entrepreneurship. Both, in productive terms (in view of the increase of costs and complexity of international freights, and the tendency to procure an adequate ecological footprint) as well as for an appropriate marketing (no matter the origin of the goods) and where it is almost certain that we watch new actors.
All of them from different backgrounds, with innovative business models. They will be able to rectify the local shortcomings, indulge the internal market and take advantage of the opportunities offered since this, highly equipped, nation in the attention of international markets. Let us remember that the consumer is only loyal to his wallet and to adequately satisfy his needs, in function of fulfilling his objectives and aspirations, and today the information travels, literally, at the speed of light. So, the decisions and opportunities that are already being considered and taken elsewhere, should also be taken here and today.
For more information:
Arturo Cardenas
Director Ejecutivo
Consejo Consultor Verde, A.C.
+52 55 8116 3755
+52 55 23580769
arturo@guiaverdemexico.com
guiaverdemexico.com