How To Find Distributors In Mexico?

Want to find new markets for your bulk liquid solutions? If so, then looking close to home is always a good idea. Mexico has become a market that increasingly more wholesalers are looking into, as it’s offering gaps in the market that you can fill. 

What is it about Mexico that makes it worth looking into, and how would you go about making your way into their markets? Here’s what you need to know. 

Why Mexico?

Firstly, why consider Mexico as a potential market for expansion? If you’re primarily operating in the US right now, then it’s a great first market to move on to. As it’s right on US borders, it’s not difficult to get a bulk liquid transportation tank to a Mexican distributor, and that keeps costs lower. 

Liquid bulk transportation companies also find that there are a lot of markets for their goods, too. If you’re able to find a market for the goods you sell, then you should find plenty of buyers here ready to buy from you. 

Moving Goods To Mexico

Something else to consider before you take the plunge into Mexican markets is how easy it is to get your bulk liquid solutions to their destination. 

As the US and Mexico share a border, it’s a lot easier and quicker to get your goods there than it would be in other markets. Around 60% of Mexican imports make their way into the country via truck. These are the goods that are going to areas such as Mexico City, Guadalajara and Monterrey, as the road systems outside these areas are challenging for trucks. 

Goods can also be sent via sea to Mexico, as they can be sent to several different ports on the Gulf Coast and the Pacific Coast. These are often a good option for liquid bulk transportation companies, as the ports have the facilities needed for door to door goods transportation. 

Targeting Markets In Mexico

If you’re sure you want to start moving into Mexico as a market, then it’s important to know that just like the US, it’s a vast geographical range to cover. As such, rather than targeting the country as a whole, you’ll actually want to target different regions as separate markets. It makes it easier for you to find a distributor who targets these markets, rather than one that can serve the whole country. 

You’ll also want to pay attention to who will be your main buyers in these markets. As a whole, market distribution is somewhat fragmented in Mexico. That’s why it’s best to focus on one particular region at first for your bulk liquid transportation tank markets. However, you will find that there are large scale buyers out there. Walmart de Mexico, for example, are a large scale importer across many markets. Ecommerce services such as Argentina based Mercado Libre are large scale importers too, currently covering 18 regions. 

The Logistics Of Distribution In Mexico

What are logistics like in Mexico? This is something important to consider if you’re thinking of using liquid bulk transportation companies and distributors here to move your product. 

The good news is that Mexico is leading global logistics hub, and shipping logistics work well here. In fact, they have 13 trade agreements with 50 countries, so the infrastructure is in place here for you to take advantage of. 

However, you need to be aware that shipping is expensive here, and not as efficient as in other countries. To compare, in the US shipping costs make up to 7% of total costs, while in Mexico it’s up to 15%. 

While that may be worrying to you if you’re looking into Mexican markets right now, the government there is looking for ways to bring those costs down for importers. They’re aiming to make competition fairer and facilitate supply chains. That includes doing things such as updating rail lines, highways and ports for better access to imported goods. 

If you’re looking to ship bulk liquid solutions by land, then you’ll need to remember that almost 53% of US to Mexico imports pass through Tijuana alone. As such, traffic through here gets very busy and that will impact your lead times. There are other road border crossings such as Nuevo Laredo, Piedras Negras and Mexicali. Again, the government are looking at ways to improve these crossings and make things better for importers. 

Getting Set Up In Mexico

For those looking to create an importing relationship with Mexican businesses, they may find that it makes sense to open an office in Mexico. If that’s the route you choose for your bulk liquid solutions, then there are some things to keep in mind. 

When you set up an office, you’ll need to consider the classification you use for your business. That’s incredibly important when it comes to paying taxes in the region. For example, you may choose to file as a Corporation, a Corporation with Variable Capital, or as a Civil Partnership. You should consult with a lawyer before doing so, to ensure that you have everything correct. 

As you can see, there is a lot to know before you can start moving even a single bulk liquid transportation tank into Mexico. If you do your research beforehand and ensure that you have the right market though, it’s a very valuable market to be in. Now is the time to make that move, and make a name for yourself in the region.