Written by George Hancock Jr.Our goal, here at Best Company, is to provide you with honest, reliable information you need to find companies you can trust.
Dios mio, doesn't anybody believe in Mexico? It's like our neighbor to the south isn't even a part of North America or NAFTA anymore. Maybe it's time to start expecting Mexico's economy to stabilize. Apparently, Amazon has faith. The company has been selling e-books at amazon.com.mx for two years. Now, finally, Mexicans can buy goods to be shipped to their homes.
In response to international expansion by many American retailers, Amazon is casting the metaphorical fishing lure in countries like India and China. Mexico is just another market in which Amazon and its competitors are attempting to seize market share. It's a land grab for e-commerce retailers, those purely online and those having brick-and-mortar locations.
Of the emerging markets, Mexico isn't the first choice for many businesses expanding abroad. Markets like Brazil, Russia, India and China are usually the most important targets. They have grown much more quickly in recent years; although some, like Brazil, are reaching a plateau. Mexico's questionable financial stability and our perception of it being very corrupt, not to mention the war against drug cartels, discourage even the international companies in close proximity to it. However, its economy has picked up and some executives are beginning to consider it as a safe option.
Amazon's Jeff Bezos says his company is "launching in Mexico with more categories, more items and more features than any previous release we have made in other parts of the world." For upstart e-commerce retailers, that may be bad news. However, there is still plenty of room for Mexico's economy to grow. With proper differentiation, anybody can be successful.