Observation Lab
  Cuauhtémoc Rivera Loaiza
   criveramx@gmail.com
Cielito Querido Café
    Mexican Coffee Shop Chain
Cielito Querido Café
This is a coffee shop that tries to lure
their customers with nostalgia, great
products and competitive prices.

They are competing against Starbucks
and other we& established chains with
a very novel approach: they se&
updated traditional mexican coffee
drinks. The stuff that your grandma
would make, but in a modern setting.

They carry, for instance, café de o&a,
pan dulce, chocolate, and horchata (a&
traditional drinks and pastries).
Environment
They use a palette based on black,
white and baby blue. The typography is
pretty eclectic, but they use “old-fashion”
fonts, mostly. They have won several
prices for the design of the stores.

The locale that I went had high
ceilings, mostly open spaces, and the
lighting was good. The place looks
pretty cool, and so is the people that go
there. The ambience is more hip than a
Starbucks, for sure. The cash register is
a& the way to the back and they have
there items for sale (coffee mugs, cups,
etc.).
Personnel
They were very            They didn’t try to
attentive, and were       confuse me with milk
certainly in tune with    options, nor try to push
what you expect now       any promotions. They
+om coffee shop            were very nice.
personnel: young, cool,
minimalist uniform.
Products
They se& only mexican beans. That, I
liked a lot. Also, the cup sizes are in
Spanish and do make sense! (Chico/sma&,
Mediano/medium, Grande/large).

They have a large selection of drinks,
mostly coffee drinks but also teas and
aguas +escas. Prices are very reasonable,
and are displayed next to the item.

They carry the usual merchandise with
the store logo, but also, this is very cool,
metal items. Like the cups shown in the
photo. They used to be in every mexican
home.

They also se& coffee to grind at home.
Final Observations

In recent years, we mexican consumers have seen an avalanche of coffee shop options,
but Cielito Querido is rea&y a breath of +esh air. Not only have they innovated with
their graphic design, but the drink selection is pretty awesome.

They provide an inviting environment that nurtures conversation, in a very cool
space.

I do hope they spread even further and become a success story in the retail space here
and abroad.
Alfarería San Francisco
         Hand cra-s
Alfarería San Francisco
This is a very good example of
outstanding products sold in a
terrible setting. The opportunities,
are immense.

This workshop is in the outskirts of
my city. The town is ca&ed Capula,
and is dedicated to the production of
pottery. They a& carry a particular
design in the decoration, a sma&
flower.

The shop/workshop is owned by a
couple of artists, who have won some
prizes for their work.
Environment
The store is not on the main street,
and is kind of hard to find. They are
known outside their town, and that’s
why we went looking for them.

They barely have any lighting inside,
and there’s not an apparent
a-erthought in the way everything is
displayed. Every piece is a sma& piece
of art, but it’s very hard to browse
them.

The store is cold, and humid. Sme&s of
clay (which I liked). The floor is
cement.
Environment

The items are displayed wherever
there’s a space. They se& something,
they put another one in that place
instead; regardless of the type of item.

The artist have their workshop in
the same store, and do not have any
additional employees.

They only se& their products in the
shop, and occasiona&y in some fairs.
Products
They are divine. They are made with
such care, such precision, that is
amazing that they aren’t more widely
known. If they were displayed in a
different setting you would definitely
pay a much higher price.

The prices are very low. Mostly
because competition +om China has
terribly eroded their profits.

They’ve tried to diversify their
offerings (new designs, new colors),
but it’s been rea&y tough.
Customers

Typical customers nowadays are
mostly urban persons, that look a-er
decoration pieces. Utilitarian products
are not been sold that much

They go a-er special pieces, mostly for
decor

Unfortunately, they sti& bargain
heavily, and the artists are forced to
give away their products at ridiculous
prices.
Final Observations

It’s heart-wrenching to see the store
in this condition. The products are
outstanding, but they are very hard to
get.

The owners are in desperate need of
support and advice +om different
instances, governmental and private.

The opportunities are huge, and I do
believe their products deserve a better
way of being sold.
La Casa de Santa Claus
La Casa de Santa Claus
This is a store that is open only in the
last quarter of the year, and se&s
Christmas decorations

It’s located in another sma& town
close to my city, ca&ed Tlalpujahua.

The town itself is pretty terrific:
mining town, up i the mountains,
surrounded by forest....it does look
christmasy!

The main draw to the Casa de Santa
Claus is the tradition and scale of the
store. It’s comprises several stories.
Environment.
The store is lit with the Xmas
decorations, mostly, and the music is
a& Xmas a& the time, which rea&y
sets you in the mood...even if it’s just
October!

I went there on a Saturday, and
there was a good number of customers.

The items are displayed by categories:
ornaments, trees, figurines, etc.

The main draw are the Xmas tree
decorations made of glass. They are
artisanal, and made in town.
Products
The mouth-blown glass decorations
are fantastic. They have them in
different shapes, sizes and colors, and
the prices are mostly reasonable.

I’d say that 70% of the products
displayed are made in town, and the
rest (plastic trees, light series, and
plastic stuff) are foreign (mainly
chinese).

They emphasize the origin of their
more prominent items for sale.
Products
In general, the quality of their
products seems good (and word of
mouth is positive)

There’s personnel readily available,
and looked like everyone is related.

Personnel wasn’t uniformed, and
dressed casua&y. They didn’t try to be
pushy and were very helpful.

Customers to the store were mostly
families when I was there.
The Restaurant :)
On the roof they have a great
addition to the store: a restaurant. It
faces the main church and you can
have a 360 degree view.

The food is pretty good, home made,
traditional mexican food. You can
enter through the store or straight
+om the street.

I found it to be very convenient, since
a-er browsing and hopefu&y buying
their products, you can take a break
and perhaps buy some more
a-erwards.
Final Observations
When being besieged by industrial
competition +om the East, your best
weapon can be to stick to tradition
and aim to a more sensitive customer.

Nothing in the store seems cheaply
made: a& is acknowledge to be made
by hand (except the plasticky stuff, of
course), and in a careful way

When you take something +om here,
you do carry the whole experience of
the town and the magical Casa de
Santa Claus.
Sanborns
Sanborns
This mexican institution is a
combination of lifestyle store,
drugstore, bookstore, restaurant and
bar.

They aim for the middle to upper
classes of mexican society, and are
ubiquitous in urban spaces.

Sanborns has established itself as the
most traditional retail shop in the
country. They are currently
expanding their presence in Central
America
Environment

They have we& defined sections:
retail, restaurant and bar.

Lighting is warm, security is
electronica&y omnipresent, and
personnel is uniformed.

They do have very we& appointed
displays, and sme&s nice. The feel of
the store is pretty comfortable
Personnel
They are very attentive, and appear
to be mostly in their 30’s

You can te& there’s not a big rotation
of personnel, since they seem to have
been working there for long.

Their uniforms are suits in the retail
space, and in the restaurant the
waitresses have this funny looking
dress. I don’t particularly like it, but
you immediately associate it with
Sanborns
Products
They do have their own brand of
products, mostly chocolates and
candies, and they se& it evoking
tradition. Mexican upper class
traditions.

The food is not particularly
outstanding, is more convenient than
anything. They do, however, have a
star dish: Enchiladas Suizas, which
are a very comforting dish and a
mexican staple (only find in
Sanborns).
Customers

Mostly middle class

Prices aren’t cheap, nor outrageous, but it’s definitely not for the price conscious

They have become the main book distributors in Mexico, so they do also attract an
inte&ectual crowd as we&.

The stores are located in ma&s or in high traffic streets, and are o-en a oasis in the
urban chaos.
Final Observations

This chain has a very we& defined niche, and have no direct competition

They know the mexican customer pretty we&, and have grown along with the
changing generations and progressing tastes.

I think, though, that they should improve their restaurant and bar services, since they
seem pretty outdated in both decor and products
Bodega Aurrera Express
Bodega Aurrera Express

This is the sma&est retail format
+om W   almart Mexico.

It’s located in highly dense urban
environments, of lower classes.

It carries mostly groceries in a
warehouse setting.

They are of recent creation, and are
rapidly expanding,
Environment
We&, it’s pretty sparse. It’s definitely
not aimed for comfortability, but
convenience.

They carry most stuff that you need
in an “emergency”, when you can’t
make it a& the way to the
supermarket. You can’t stay that much
in there, you don’t go there to browse.
You go to get a particular thing and
leave.

They have few employees, and rely in
video cameras to provide security
inside. There’s a police man in the exit.
Products
Products
Household items, mainly.
At very low prices.
Again, aimed to the less
wealthy classes in
Mexico
They usua&y have one or
two On Sale bins, and
one seasonal bin (xmas,
día de muertos, etc.).
Final Observations

This retail format has lots of opportunities in my country, as more and more urban
Mexican society becomes

I do expect that their offerings and product display wi& become more sophisticated as
people become wealthier (they are walmart, a-er a&, and they do know how to adapt).

One thing, though, they must be regulated, since they are cannibalizing traditional
mom and pops stores in the neighborhoods. Traditional stores cannot compete price
wise with them
Mixup
Mixup

Mixup is the main music retailer in
Mexico, and have been since the mid
90’s

They have presence in most ma&s in
Mexico, and though their focus was
in music, they have leaned more and
more to dvd’s and bluray.

They also se& LPs, some electronics,
and have a Ticketmaster counter
Environment
They have rows a-er rows of media,
ordered by performer or genre

Music is loud, and mostly upbeat,
though they have an isolated area for
classical music.

Decor is also loud with stuff hanging
+om the ceiling and displays
everywhere. Lighting is more on the
warm side.

They want you to browse as much as
you can, and the format a&ows you to
do just that
Environment
Although the lightning is warm, the        Due to the immersiveness of media
store feels cool. Probably is because of   shopping, it is expected that you spend
the meta&ic touches everywhere (only       a lot of time there, and Mixup does a
the classical music section has wooden     good job on that +ont: shelves are we&
shelves).                                  spaced, music is upbeat, but not too
                                           loud and the displays are we& stocked.
Security in the store is a combination
of electronic measures and police men
on the exit
Products
At the beginning they used to se&
mostly music, but due to piracy and
changing shopping habits, they have
turned more into a video store.

They s
Personnel
Mostly in their thirties,   They are mostly helpful,
always on the move.         not intrusive.
Always ordering the
                            They do not have an
media that customers
                            opinion, but do know
have moved.
                            where what you’re
They are uniformed,         looking for is.
with a navy and ye&ow
polo shirt, and khakis.
Products
We&, they are THE source for your         Although they announce their digital
media cravings in this country. If they   services (music shopping, mp3s, etc),
don’t have it, you should probably go     there’s no specialized section to service
straight to Amazon.                       that! The personnel doesn’t offer help
                                          on that.
Prices are ok in national made items,
and super pricey in imported stuff.        They prominently display their on
                                          sale products, in the second row of the
The selection is good, though I believe   store, forcing you to get in to the store,
they should get rid of their CD bins      and browse beyond the bins.
(they occupy a lot of space and few
customers seem to wander there)           Cash registers are always slow. They
                                          need more counters.
Customers
Mostly individuals, you      I’ve noticed that most
don’t see families           customers browse the
shopping there               entire store; they begin in
                             the far le- and go
Ages vary +om teenagers
                             through a& the bins
to people in their sixties
                             trying to find something
(mostly on the movie
                             special.
sections)
Final Observations
In order to survive Mixup has to          Using their already good
acknowledge and embrace                   in+astructure, I would recommend
wholeheartedly streamed media             setting up facilities that would
                                          encourage the customer to buy media
Although I appreciate the availability    +om their online store, by providing
of recorded media, the future is in non   browsing displays to preview their
tangible media. Mixup seems to not        offerings
notice that, and therefore they might
go the way of the dodo.
Observation lab

Observation lab

  • 1.
    Observation Lab Cuauhtémoc Rivera Loaiza criveramx@gmail.com
  • 2.
    Cielito Querido Café Mexican Coffee Shop Chain
  • 3.
    Cielito Querido Café Thisis a coffee shop that tries to lure their customers with nostalgia, great products and competitive prices. They are competing against Starbucks and other we& established chains with a very novel approach: they se& updated traditional mexican coffee drinks. The stuff that your grandma would make, but in a modern setting. They carry, for instance, café de o&a, pan dulce, chocolate, and horchata (a& traditional drinks and pastries).
  • 4.
    Environment They use apalette based on black, white and baby blue. The typography is pretty eclectic, but they use “old-fashion” fonts, mostly. They have won several prices for the design of the stores. The locale that I went had high ceilings, mostly open spaces, and the lighting was good. The place looks pretty cool, and so is the people that go there. The ambience is more hip than a Starbucks, for sure. The cash register is a& the way to the back and they have there items for sale (coffee mugs, cups, etc.).
  • 5.
    Personnel They were very They didn’t try to attentive, and were confuse me with milk certainly in tune with options, nor try to push what you expect now any promotions. They +om coffee shop were very nice. personnel: young, cool, minimalist uniform.
  • 6.
    Products They se& onlymexican beans. That, I liked a lot. Also, the cup sizes are in Spanish and do make sense! (Chico/sma&, Mediano/medium, Grande/large). They have a large selection of drinks, mostly coffee drinks but also teas and aguas +escas. Prices are very reasonable, and are displayed next to the item. They carry the usual merchandise with the store logo, but also, this is very cool, metal items. Like the cups shown in the photo. They used to be in every mexican home. They also se& coffee to grind at home.
  • 7.
    Final Observations In recentyears, we mexican consumers have seen an avalanche of coffee shop options, but Cielito Querido is rea&y a breath of +esh air. Not only have they innovated with their graphic design, but the drink selection is pretty awesome. They provide an inviting environment that nurtures conversation, in a very cool space. I do hope they spread even further and become a success story in the retail space here and abroad.
  • 8.
  • 9.
    Alfarería San Francisco Thisis a very good example of outstanding products sold in a terrible setting. The opportunities, are immense. This workshop is in the outskirts of my city. The town is ca&ed Capula, and is dedicated to the production of pottery. They a& carry a particular design in the decoration, a sma& flower. The shop/workshop is owned by a couple of artists, who have won some prizes for their work.
  • 10.
    Environment The store isnot on the main street, and is kind of hard to find. They are known outside their town, and that’s why we went looking for them. They barely have any lighting inside, and there’s not an apparent a-erthought in the way everything is displayed. Every piece is a sma& piece of art, but it’s very hard to browse them. The store is cold, and humid. Sme&s of clay (which I liked). The floor is cement.
  • 11.
    Environment The items aredisplayed wherever there’s a space. They se& something, they put another one in that place instead; regardless of the type of item. The artist have their workshop in the same store, and do not have any additional employees. They only se& their products in the shop, and occasiona&y in some fairs.
  • 12.
    Products They are divine.They are made with such care, such precision, that is amazing that they aren’t more widely known. If they were displayed in a different setting you would definitely pay a much higher price. The prices are very low. Mostly because competition +om China has terribly eroded their profits. They’ve tried to diversify their offerings (new designs, new colors), but it’s been rea&y tough.
  • 13.
    Customers Typical customers nowadaysare mostly urban persons, that look a-er decoration pieces. Utilitarian products are not been sold that much They go a-er special pieces, mostly for decor Unfortunately, they sti& bargain heavily, and the artists are forced to give away their products at ridiculous prices.
  • 14.
    Final Observations It’s heart-wrenchingto see the store in this condition. The products are outstanding, but they are very hard to get. The owners are in desperate need of support and advice +om different instances, governmental and private. The opportunities are huge, and I do believe their products deserve a better way of being sold.
  • 15.
    La Casa deSanta Claus
  • 16.
    La Casa deSanta Claus This is a store that is open only in the last quarter of the year, and se&s Christmas decorations It’s located in another sma& town close to my city, ca&ed Tlalpujahua. The town itself is pretty terrific: mining town, up i the mountains, surrounded by forest....it does look christmasy! The main draw to the Casa de Santa Claus is the tradition and scale of the store. It’s comprises several stories.
  • 17.
    Environment. The store islit with the Xmas decorations, mostly, and the music is a& Xmas a& the time, which rea&y sets you in the mood...even if it’s just October! I went there on a Saturday, and there was a good number of customers. The items are displayed by categories: ornaments, trees, figurines, etc. The main draw are the Xmas tree decorations made of glass. They are artisanal, and made in town.
  • 18.
    Products The mouth-blown glassdecorations are fantastic. They have them in different shapes, sizes and colors, and the prices are mostly reasonable. I’d say that 70% of the products displayed are made in town, and the rest (plastic trees, light series, and plastic stuff) are foreign (mainly chinese). They emphasize the origin of their more prominent items for sale.
  • 19.
    Products In general, thequality of their products seems good (and word of mouth is positive) There’s personnel readily available, and looked like everyone is related. Personnel wasn’t uniformed, and dressed casua&y. They didn’t try to be pushy and were very helpful. Customers to the store were mostly families when I was there.
  • 20.
    The Restaurant :) Onthe roof they have a great addition to the store: a restaurant. It faces the main church and you can have a 360 degree view. The food is pretty good, home made, traditional mexican food. You can enter through the store or straight +om the street. I found it to be very convenient, since a-er browsing and hopefu&y buying their products, you can take a break and perhaps buy some more a-erwards.
  • 21.
    Final Observations When beingbesieged by industrial competition +om the East, your best weapon can be to stick to tradition and aim to a more sensitive customer. Nothing in the store seems cheaply made: a& is acknowledge to be made by hand (except the plasticky stuff, of course), and in a careful way When you take something +om here, you do carry the whole experience of the town and the magical Casa de Santa Claus.
  • 22.
  • 23.
    Sanborns This mexican institutionis a combination of lifestyle store, drugstore, bookstore, restaurant and bar. They aim for the middle to upper classes of mexican society, and are ubiquitous in urban spaces. Sanborns has established itself as the most traditional retail shop in the country. They are currently expanding their presence in Central America
  • 24.
    Environment They have we&defined sections: retail, restaurant and bar. Lighting is warm, security is electronica&y omnipresent, and personnel is uniformed. They do have very we& appointed displays, and sme&s nice. The feel of the store is pretty comfortable
  • 25.
    Personnel They are veryattentive, and appear to be mostly in their 30’s You can te& there’s not a big rotation of personnel, since they seem to have been working there for long. Their uniforms are suits in the retail space, and in the restaurant the waitresses have this funny looking dress. I don’t particularly like it, but you immediately associate it with Sanborns
  • 26.
    Products They do havetheir own brand of products, mostly chocolates and candies, and they se& it evoking tradition. Mexican upper class traditions. The food is not particularly outstanding, is more convenient than anything. They do, however, have a star dish: Enchiladas Suizas, which are a very comforting dish and a mexican staple (only find in Sanborns).
  • 27.
    Customers Mostly middle class Pricesaren’t cheap, nor outrageous, but it’s definitely not for the price conscious They have become the main book distributors in Mexico, so they do also attract an inte&ectual crowd as we&. The stores are located in ma&s or in high traffic streets, and are o-en a oasis in the urban chaos.
  • 28.
    Final Observations This chainhas a very we& defined niche, and have no direct competition They know the mexican customer pretty we&, and have grown along with the changing generations and progressing tastes. I think, though, that they should improve their restaurant and bar services, since they seem pretty outdated in both decor and products
  • 29.
  • 30.
    Bodega Aurrera Express Thisis the sma&est retail format +om W almart Mexico. It’s located in highly dense urban environments, of lower classes. It carries mostly groceries in a warehouse setting. They are of recent creation, and are rapidly expanding,
  • 31.
    Environment We&, it’s prettysparse. It’s definitely not aimed for comfortability, but convenience. They carry most stuff that you need in an “emergency”, when you can’t make it a& the way to the supermarket. You can’t stay that much in there, you don’t go there to browse. You go to get a particular thing and leave. They have few employees, and rely in video cameras to provide security inside. There’s a police man in the exit.
  • 32.
  • 33.
    Products Household items, mainly. Atvery low prices. Again, aimed to the less wealthy classes in Mexico They usua&y have one or two On Sale bins, and one seasonal bin (xmas, día de muertos, etc.).
  • 34.
    Final Observations This retailformat has lots of opportunities in my country, as more and more urban Mexican society becomes I do expect that their offerings and product display wi& become more sophisticated as people become wealthier (they are walmart, a-er a&, and they do know how to adapt). One thing, though, they must be regulated, since they are cannibalizing traditional mom and pops stores in the neighborhoods. Traditional stores cannot compete price wise with them
  • 35.
  • 36.
    Mixup Mixup is themain music retailer in Mexico, and have been since the mid 90’s They have presence in most ma&s in Mexico, and though their focus was in music, they have leaned more and more to dvd’s and bluray. They also se& LPs, some electronics, and have a Ticketmaster counter
  • 38.
    Environment They have rowsa-er rows of media, ordered by performer or genre Music is loud, and mostly upbeat, though they have an isolated area for classical music. Decor is also loud with stuff hanging +om the ceiling and displays everywhere. Lighting is more on the warm side. They want you to browse as much as you can, and the format a&ows you to do just that
  • 39.
    Environment Although the lightningis warm, the Due to the immersiveness of media store feels cool. Probably is because of shopping, it is expected that you spend the meta&ic touches everywhere (only a lot of time there, and Mixup does a the classical music section has wooden good job on that +ont: shelves are we& shelves). spaced, music is upbeat, but not too loud and the displays are we& stocked. Security in the store is a combination of electronic measures and police men on the exit
  • 40.
    Products At the beginningthey used to se& mostly music, but due to piracy and changing shopping habits, they have turned more into a video store. They s
  • 41.
    Personnel Mostly in theirthirties, They are mostly helpful, always on the move. not intrusive. Always ordering the They do not have an media that customers opinion, but do know have moved. where what you’re They are uniformed, looking for is. with a navy and ye&ow polo shirt, and khakis.
  • 42.
    Products We&, they areTHE source for your Although they announce their digital media cravings in this country. If they services (music shopping, mp3s, etc), don’t have it, you should probably go there’s no specialized section to service straight to Amazon. that! The personnel doesn’t offer help on that. Prices are ok in national made items, and super pricey in imported stuff. They prominently display their on sale products, in the second row of the The selection is good, though I believe store, forcing you to get in to the store, they should get rid of their CD bins and browse beyond the bins. (they occupy a lot of space and few customers seem to wander there) Cash registers are always slow. They need more counters.
  • 43.
    Customers Mostly individuals, you I’ve noticed that most don’t see families customers browse the shopping there entire store; they begin in the far le- and go Ages vary +om teenagers through a& the bins to people in their sixties trying to find something (mostly on the movie special. sections)
  • 44.
    Final Observations In orderto survive Mixup has to Using their already good acknowledge and embrace in+astructure, I would recommend wholeheartedly streamed media setting up facilities that would encourage the customer to buy media Although I appreciate the availability +om their online store, by providing of recorded media, the future is in non browsing displays to preview their tangible media. Mixup seems to not offerings notice that, and therefore they might go the way of the dodo.