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How to Establish Strong Business Relationships in Mexico?

por | Sep 12, 2024 | Artículo

Many foreign SMEs fail when trying to enter the Mexican market due to several key factors. For example, according to data from the Radiography of Entrepreneurship in Mexico, 34% fail due to a lack of market knowledge, 32% due to poor business management, 25% because of issues with business partners, and 22% due to insufficient financing. A crucial element to avoid this failure is to develop communication strategies for foreign companies tailored to local specifics.

However, another key factor that few have on their radar, especially for foreign companies entering Mexico, is the lack of understanding of the cultural and communication differences that define the Mexican business environment.

That’s why today’s article provides a practical guide for foreign companies to develop effective communication strategies, adapted to the Mexican business culture.

develop communication strategies for foreign companiesUnderstanding Business Culture in Mexico

The first step in establishing strong business relationships in Mexico is to understand that Mexican companies value personal relationships. Unlike other countries where business is more focused on results and transactions, in Mexico, personal connections and trust play a fundamental role in negotiations. It’s important to take the time to build relationships before discussing business.

The Importance of Respect and Hierarchy

Mexico is a hierarchical society, and respect for authority is crucial. In business negotiations, final decisions often fall on senior management. Therefore, it’s essential to identify decision-makers early on and show genuine respect for their authority. Dealing directly with lower-level individuals can slow down the process.

Indirect Communication and Context

Communication in Mexico tends to be more indirect compared to business cultures like the U.S. It’s essential to understand non-verbal cues and context to correctly interpret what is being said, as Mexicans often avoid direct confrontation. The concept of “saving face” is important for maintaining harmonious relationships.

Negotiation and Patience

The negotiation process in Mexico can take longer than some foreign companies are used to. Timelines are not always as quick as in other markets, and patience is key. Rushing a Mexican partner may be seen as disrespectful. Instead of pressuring, companies should be prepared to invest time in meetings and build a strong connection before finalizing any agreements.

develop communication strategies for foreign companiesMarketing Adapted to the Local Culture

Marketing strategies that work in other markets may not always be effective in Mexico. One of the main differences lies in the strategies and platforms used for marketing. Adapting messages and campaigns to the local culture is crucial. Mexican consumers highly value traditions, family, and community ties, so marketing campaigns that highlight these values are more likely to succeed. Foreign companies should avoid imposing a foreign mindset in their messaging and focus on integrating into Mexican culture.

For foreign SMEs, overcoming cultural barriers in Mexico requires patience, respect, and a focus on building personal relationships rather than just transactions. By adopting a communication strategy that values relationships, respects hierarchy, understands context, and implements culturally adapted marketing, companies can significantly improve their chances of success in the Mexican market.

At Ola Branding, we are your ally in developing effective strategies to ensure that your business successfully enters and thrives in Mexico.

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