importing to us from mexico

Importing to the us from mexico Brittney wooten Fasm 420 Spring 2012

Electrik unicorn q Electrik Unicorn’s head office is located in Portland, Oregon in the hip up and coming Hawthorne District neighborhood. q Electrik Unicorn caters to women 18-35 years old; that are seeking eclectic good quality denim. q Our customer comes from a diverse cultural background. She is carefree, young, quirky, rebellious and socially responsible. She is a student or working professional in a creative field; and enjoys music, fashion, art festivals, Tumblr, and Pinterest. q Our customers enjoy quality moderately priced denim; she spends $1,000+ on clothing and her yearly income is $45,000+. q We pride ourselves in providing merchandise that fits the needs and wants of our customers. Our main focus at Electrik Unicorn is customer service; making sure we are meeting customer demands is very important. We provide our customers with quality customer service, maintain our stock and inventory, and offer an assortment of sizes and fits based on our target customer. q I wanted to import from Mexico in order to retain a mark up of 65%. The goods will be paid for via a letter of credit, from our bank in Portland, Oregon.

Product classification q The product classification is women’s denim jeans.

Sub-classifications q Skinny Jeans q Cuffed Short q Ankle Grazer Jean q Wide Leg Jean q The jeans produced will be available in sizes 2, 4, 6, 8, and 9 with a size scale of 2, 3, 3, 2, 2. q

All denim produced for Electrik Unicorn will cost of 98% cotton and 2% spandex. The skinny jean will be bought at $16.14 and with a mark up of 65% will retail for $60.

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Electrik Unicorn will be importing goods from Compania Industrial de Parras. Parras is the biggest denim manufacturer in Mexico.

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They produce about 2 million pairs of jeans per month. In the early 1990’s Parras merged with Cone Mills Corporation, which happened to be the largest denim producer in the world.

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Parras produces goods with the latest state-of-the-art equipment, Parras utilizes sustainable practices.

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I chose to use this factory because their focus is on making the customers happy by producing new and creative ideas.

traits of mexico q

Mexico is a tropical Spanish speaking country boarding the United States with a popula9on of 113 million with a 1.1% growth rates since 2011.

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Mexico has a Gross Domes9c Product (GDP) of $1.04 trillion.

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Trade represents a large amount of Mexico’s economy. Exports to the United States represent $230 billion over 80% of the countries total and imports represent $160 billion 50% of the country’s total trade.

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Mexico largest markets include the United States, European Union (5%), and South America (5%).

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Mexico is considered to be an upper middle-­‐income country. Since the global recession in 2009, Mexico’s economy has grown 5%.

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Tourism has contributed largely to Mexico’s economic growth.

Business etiquette in mexico q

Women doing business in this country should always dress professionally. Women should wear a dress, blouse, or skirt; suits should be class cuts in basic business colors such as gray, navy, white, and ivory.

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Jeans, 9ght, short, or low cut aWre is not acceptable.

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In Mexico gestures such as puWng your hands on your hips or in pockets is looked at as aggressive and inappropriate.

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The lack of eye contact is seen as a sign or respect.

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In Mexico women are allowed to shake hands with both men and women.

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It is best to have dinners and breakfast at your hotel; women shouldn’t have private dinners with a male unless other business partners and or spouses are invited.

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GiYs are not required when doing business here, but are greatly appreciated. Silver giYs are not acceptable because they are seen as touristy.

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Mexican business persons prefer to build a rela9onship first, causing nego9a9ons to move at a slower rate.

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When making decisions rela9ng to business it is important to take 9me to think before agreeing. Persistence is the key to successful business in Mexico, giving up too soon will seem as if you aren’t serious.

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Women doing business in Mexico should expect some difficul9es. Women should make it aware that they have skills and authorita9ve abili9es.

Business card

Trade agreements q

Mexico has a trade regime that is structured around 13 agreements with 44 other countries. Mexico provides the United States market and aids in diversifying its locations.

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In 2010 roughly 80% of Mexico’s exports went to the United States, significantly lower than the 90% of exports in 2001.

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Mexico is the United States’ 2nd largest import market after Canada.

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Trade matters between Mexico and the United States are negotiated and brought forward by the World Trade Organization (WTO) and North American Free Trade Agreement (NAFTA).

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WTO is defined as “An organization with over 147 countries as members; deals with the global rules of trade among nations.”

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NAFTA is “Eliminated tariffs and quotas among Canada, Mexico, and United States.”

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Mexico and the United States have a strengthening and growing relationship. Their close relationship aids in making sure to help improve competiveness in North America.

Codes of conduct q

Compliances with laws/prohibiting laws

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Corporate Opportunities

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Confidentiality

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Gifts

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Health & Safety

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Violations

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Reporting Complaints