Free Submission Public Relations & NewsPR-inside.com
Home
Deutsch English

Finance
Home and Garden in Mexico

Mexico home products market: Fragmented competitive environment


Print article Print article
© companiesandmarkets.com

companiesandmarkets.com
companiesandmarkets.com
2014-01-29 23:53:01 - Home and Garden in Mexico - a new market research report on companiesandmarkets.com

Home and garden growth in Mexico during 2012 was largely in line with the review period average. The economy has continued to grow at a moderate pace and the country is consolidating its position as a manufacturing hub in the Americas. The good performance of the economy has especially boosted home furnishings, which finally recorded positive growth after year-on-year declines during the 2007-11 period. However, the relatively positive economic situation had a limited impact on the rest of the industry given that areas such as home improvement and homewares are driven more by the number of housing starts and cultural characteristics that are slower to change than disposable income or consumer confidence trends.

In the second half of 2012, US multinational

 

 

Sherwin Williams acquired Mexico´s leading home paint player, Consorcio Comex, from the Achar family for US$2.3 billion. The acquisition unites the first and third placed players and should help speed Comex´s development into an international powerhouse. With the purchase, Sherwin Williams gains access to a historic Mexican brand as well as 3,300 retail paint retail outlets, 3,000 of which are in Mexico, and Comex´s production capacity. Industry sources confirm that the combination of retail, brand and financing strength should allow the company to grow quickly and overwhelm competitors.

The competitive environment within home and garden remains quite fragmented in Mexico, with top brands and companies accounting for only a small share of total value sales in 2012. In this situation, where branding is relatively weak, Chinese imports have been very successful. However, in 2012 Chinese imports growth stalled as importers revised their price strategies and the market showed signs of saturation. However, sales of Chinese imports may once again be strongly boosted by the creation of the so-called Dragon Mart in Cancun, which will operate as a regional sales office and showroom for hundreds of Chinese companies. The project is set to open in 2014 and has provoked outcries from Mexican industry.

During the review period there was a trend towards more unique and added-value retailers in Mexico. Although department stores and outdoor markets have traditionally been among the most important sales channels for homewares and home furnishings, in recent years there has been an expansion of the retail offer. The arrival of the Zara Home furnishing specialist retail brand was followed in early 2013 by the entry of H&M home and Crate & Barrel. These brands are well received among middle and upper income consumers in Mexico and it is likely that more will follow. In the long term, the desire of Mexican consumers for new styles and international brands should help specialist retailers take share from department stores and other retailers.

Home and garden will continue to record moderate growth over the forecast period. Prospects for the area are slightly better than over the review period as the economy is expected to perform better overall. Growth will also be pushed by cultural trends such as the gradual rise of the DIY culture pushed by The Home Depot retail brand and increased interest in improved design and rooftop gardens. Manufacturers are expected to take advantage of growth potential by investing in added value and new designs in order to encourage consumers to trade up, increase replacement of products and choose Mexican products over cheap imports.

Click for report details: www.companiesandmarkets.com/Market/Consumer-Goods/Market-Researc ..

Browse all Consumer Goods Market Research Reports www.companiesandmarkets.com/Market/Consumer-Goods/Market-Researc ..

Browse all Consumer Goods Company Profile Reports www.companiesandmarkets.com/Market/Consumer-Goods/Company-Profil ..

Browse all Latest Market Research Reports www.companiesandmarkets.com/Market/All/Market-Research?aCode=f3f ..

About Us
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.com’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.


Author:
Mike King
e-mail
Web: www.companiesandmarkets.com
Phone: London: +44 (0) 203 086 8600

Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release.
Latest News
Read the Latest News
www.newsenvoy.com

 


Terms & Conditions | Privacy | About us | Contact PR-inside.com | BidVertiser