• Decline in Mexican shipments of
textiles and apparel
• Decline in Mexican textile and apparel
• Decline in GDP
• Mexican strengths
• Little leverage rate
• None toxic financial sector
• Mexican government policy: open
market, keep consumer costs low
The new realities
• New realities require a new
• Slow recovery in U.S./global consumer
• Consolidation of U.S. brands
• Smaller inventories/orders
• Shorter supply lines
• New retail models
• Long term shift in U.S. consumer
• Post-crisis changes in China supply base
Where MEXICO FITS in
• In 2008, Mexico was the second largest supplier of
textiles and apparel in the U.S. market
• Strong domestic market—more than 100 million
consumers, increasing demand for high fashion products
• Capacity—Mexican textile and clothing industry exports to
more than 60 countries.
• With twelve free trade agreements, Mexico has preferential
access to 44 countries.
• Competitive imports duties, Mexico implemented lower
MFN import duties in December 2008 and AD duties on
Chinese imports are in the process of being phased-out.
• Cumulation with CAFTA, potential expansion to other U.S.
FTA partners in the Western hemisphere.
1. New textile and apparel market realities
must be seen as an opportunity for
hemisphere suppliers to reestablish our position
in the U.S. market
2. We compete with other world regions as a
hemisphere, not as individual suppliers alone
3. We must work together to address customer
needs, build competitiveness and promote
4. We must exit this crisis more competitive,
more customer focused than before
1. Customer first
2. Industry transformation
4. Customer Board of Advisors
Mexico Fits starts with Customers
Interviews with customers, ex customers
• High transactions costs: Restrictive/complex trade
agreements, customs and regulations
• High transactions costs: Customs and security
• Security, including fraud and counterfeiting
• Need a full package, including accessory suppliers
• Non-price factors: variety, design, development,
On the plus side
• Knowledge of the U.S. market/culture
1. Tightening controls on production
2. Investing in logistics
3. Increased flexibilities
4. Upgrade worker skills
• Zero defect
• Full customer support
• On-time delivery
Diagnosis: We will
• Raise production efficiencies to the highest levels in the
• Meet the highest standards for products and raw
• Provide the fastest response time.
• Guarantee safe and efficient customs clearance.
• Offer the widest variety of products and raw materials.
• Bring flexibility and adaptability to your sourcing
• Add value in each and every product.
• Be cost competitive across the full range of our products.
• Understand and find solutions for the needs and
demands of our customers.
Working with our customers
Board of Advisors: Mexico, largest
textile and apparel exporters
Board of Advisors: US, main
customers and importers
Benchmarking for credibility
Third party verified performance
measurement system based on
customer criteria for rating suppliers
Closeness to customers and
benchmarking will prove that…..