Weekly Currency Update: Mexican Peso

The Mexican peso is trading at $12.33 MXN = $1 USD. 

Some events this week/month that affected the Mexican economy:

• President Calderon said "Mexico is replacing Canada as the second largest exporter to the United States in non-energy products."
• Mexico's Central Bank lowers the inflation forecast for Q4 2010
• Cross border traffic is on the rise

Interesting article in The Economist this week :
Bringing NAFTA back home

Askalo - New Community Site Provides Answers to your Questions

Askalo is an online community where users can connect and ask eachother questions about what is going on in their city.  If you are new to a city and would like to find an Italian restaurant, just post your question and in minutes you will have answers.  Need to find the best bank?  Wondering what events are happening this weekend?  Just ask!

Askalo Mexico covers almost all major cities in Mexico and is very easy to use.  To sign up in three simple steps, go to this page Sign Up for Askalo Mexico

LinkedIn: Are you using LinkedIn for your international or expat business?

Out of all the ways to connect, LinkedIn is one of my favorite platforms.  It allows you to connect with people you know, but also allows you to reach out to people you would like to meet or do business with (in a professional manner!).  If you are not currently using LinkedIn for your business, its time to sign up!   
1.  Use Groups

From Alumni groups to groups about a specific niche in your field, you can find a group on LinkedIn for almost anything.  I really like the Connect to Mexico group, which is a group of professionals from all over the world who either currently do business with or hope to do business with Mexico.

2.  Use the search feature to search for certain companies/people

If you've ever wondered who the person in charge of purchasing is at a certain company, you just might find that info on LinkedIn.  The search feature allows you to search for people by name or company.  You can see all of the employees (well the ones registered on LinkedIn) that work at a certain company.

3.  Recommend/Get recommended

Have you ever worked with someone that went above and beyond the call of duty?  LinkedIn has a feature where you can write a short recommendation about someone, so when people go to their page they will see that other people vouch for them.  You can ask for recommendations as well, from former colleagues or people you've done business with.

4.  See what your network is doing

As you add more contacts, you will get to see their Twitter updates, books they recommend, where people are traveling, and much more. 

Telmex Profit Drops

Telmex posted its latest earnings this week and the results were not so great - a 21.5% drop in third quarter profits.  Telmex, owned by Carlos Slim (the world's richest man), is Mexico's largest fixed-line company.  In some parts of Mexico, your choice for a new phone line is either Telmex...or Telmex.  Telmex control's nearly 80% of Mexico's land lines.

So if Telmex is virtually a monopoly, what is going on to cut their profits so drastically? 

The cable companies.

All over Mexico, cable companies have started to offer "triple play" packages which is a bundle that includes TV, internet, and phone service all for one low price.  Cablevision, Megacable, Telecable, Cablecom, are just a few of the companies that are offering these packages.

Let's look at a comparision:

Telmex monthly phone service (the cheapest plan) $346.49 MXN
Cablevision triple play (internet, TV, phone)          $525.00 MXN
Megacable triple play (internet, TV, phone)            $549.00 MXN

In Mexico, price is king, so it won't be long before Telmex comes up with something to compete with the cable companies.

One of Telmex's latest packages (which I love) is a package that allows you unlimited calls throughout Mexico and the United States for $1,099 MXN/month.  If you call the United States often and live in Mexico, I highly recommend this package.  It also includes internet service.

PS- Did anyone else notice the Telmex logos on the Chilean miners rescue jumpsuits?  This guy is everywhere!!!

Mexican Business Etiquette: How to Greet Someone in Mexico

I find that a lot of people come to the Mexipreneur site in search of etiquette tips, so today I'm going to cover something that is a huge source of confusion for a lot of people - the greeting.  In the United States and Canada, when meeting someone you are going to do business with the typical greeting is to shake hands.

After spending sometime in Mexico, you will notice that men and women greet eachother with a kiss on the cheek.  This is the typical greeting of friends and family (sometimes accompanied with a hug!).

Navigating how to greet people in the business world can be tricky because if you are meeting someone for the first time you really can't be considered friends, so what do you do?  If you are a woman, do you kiss your Mexican business colleague on the cheek or just shake hands?  It's funny because many Mexicans are used to foreigners being uncomfortable with the "kiss on the cheek" greeting, so they will go ahead and shake your hand before you even have time to overanalyze how to handle the greeting. 

You know what they say..."when in Rome, do as the Romans do."  I would encourage you to follow local customs when it comes to greeting potential business partners.  If you are a man, the standard handshake will do.  If you've become good friends or have known the person for awhile, the handshake will be accompanied with a pat on the back.  The best thing you can do is be observant.  Before you know it you will become so comfortable that you'll look back and laugh about how you stressed over a simple greeting.

A fantastic book that covers doing business in over 60 countries is Kiss, Bow or Shake Hands.  This book is a must read for anyone involved in international business.

Guess who's coming to Mexico? Payless Shoes!

Payless Shoes announced this week that it will begin expansion into Mexico late next year by partnering with Grupo Axo, based out of Mexico City. 

Payless is looking to expand its international footprint and fill a need for low cost, fashionable shoes.  In addition to opening stores in Mexico, the company also plans to open in Indonesia, Malaysia and Singapore.

The partnership will open 41 stores in the next 3 years, hoping to open around 300 over the long term. Grupo Axo is a good choice for Payless as they currently represent some very popular brands in Mexico:   Benetton, Brooks Brothers, Brunelo Cucinelli, Coach, Emporio Armani, Etro, Guess, Marc Jacobs, Rapsodia, Thomas Pink and Tommy Hilfiger.

Weekly Currency Update: Mexican Peso

Today the Mexican Peso is trading at $12.38 MXN = $1 USD.

Interesting/important news in the Mexican economy this week:

• Yesterday the Secretaria de Hacienda (head of Mexico's Tax Authority), said Mexico will see 4.8% economic growth in 2010 (it contracted 6.5% in 2009)
• Mexico's retail sales rose more than expected in August (4.4 % vs. 3.5% forecast)
• Mexican stocks almost ended on a record high yesterday
• Mexico's consumer confidence index climbed in September

An article you might enjoy:

In defiance of ceaseless violence, Mexico's economy flourishing