In recent years, there has been an increase in the number of US-based companies entering or planning to enter into the Mexican market. For example, Best Buy has rolled out an aggressive plan to invest $400 million to open 20 stores in Mexico over a three-year period. Lowe’s announced earlier this year that it spent roughly $40 million to open two stores in Monterrey, Mexico. And Target is setting its sights on expanding into Mexico, with goals to enter into the market no later than 2013.
Without question, there are many challenges with entering into a new market, such as understanding the country and cultural norms that influence shopping habits, determining how to transfer and modify successful strategies of a winning brand in one country to another, and understanding what the current size of the new market is as well as its growth potential. However, despite these hurdles, my colleague Tamara Barber and I contend that US-based retailers can use the factors that influenced the growth of the US Hispanic eCommerce market as a guide for developing effective growth strategies in Mexico.