PRELIMINARY MARKET REPORT

TAPACHULA-CHIAPAS

(October 2006)
LOCATION AND WEATHER

 Tapachula is located in southern part of the state of Chiapas, near the border with Guatemala, at
14.91¢X N 92.27¢X W, on the Soconusco coastal plain.
 Annual average temperature oscillates among 23 to 27¢XC. The climate is hot all over the year and the
hottest period is from March to May. The rainiest months are June to September (season of
hurricanes)

POPULATION AN INCOME LEVEL

 Total population in Tapachula Metro Area is 300,000 inhabitants / 66,900 families,
 The municipality of Tapachula is the second biggest metro area of the State of Chiapas, after Tuxtla
Gutierrez, which is the capital of the state (400,000 inhabitants),
 Tapachula includes several suburbs including beaches like Playa Linda, Puerto Madero, Viva Mexico and
even a Cruise Harbor named Puerto Chiapas (the most important industrial and tourist port for the
region),
 Income levels in Tapachula is as follows:
- A/B Level: 7 %
- C Level: 31%
- D/E Level: 62% (D/E income levels increased after Hurricane Stan in 2005)

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 INCOME LEVELS IN TAPACHULA METRO AREA

8%
31 %
%

62 %
%

 Population structure in Tapachula is predominantly young, 59% of its inhabitants are less than 31 years
and the medium age is of 22 years,
 Furthermore, close to 80% of the population in Tapachula are less than 44 years,

PPULATION AND INCOME LEVELS IN MEXICO (2010)

AGE POPULATION % ACUM.

0-14 years 88.784 31.3 % 31.4 %

15-29 Years 76.359 28 % 58.5 %
30-44 years 56.365 19 % 78.4 %
45-59 years 33.085 11.7 % 90.1 %
60-74 years 15.720 5.9 % 95.7 %
75-89 years 4.897 1.4 % 97.4 %
+ 90 years 457 0.3 % 97.6 %
No especificated 6.735 2.4 % 100 %
TOTAL 282.420 100%

Source: INEGI – II Population and Dwelling Counts 2005

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 Monthly family income in Tapachula is as follows:
- A/ B level: $38,000
- C + Level: $25,000
- C level: $13,000
- C – level: $7,000
- D / E Level: $2,500
-
 Average monthly income per family is $8,100 Mexican pesos (USD$750)

ECONOMY
 The municipality of Tapachula is considered the economic capital of Chiapas,

 The city has one of the highest GDP per capita in Mexico,

 Main economic activities in Tapachula (by number of people employed):

- Agriculture: 19,01%,
- Industry: 16,52% and,
- Commerce and services: 61,64%

 The town San Benito, located at 26 kms of Tapachula, is home of the most important port of Chiapas
known as Puerto Chiapas (remodelled in the 2005 and inaugurated in the 2006
www.puertochiapas.com.mx),

 Puerto Chiapas is the new maritime port designed for serving tourist cruise lines,

 A potential market of 750,000 annual tourists is estimated for Puerto Chiapas,

 Puerto Chiapas will definitively employ people from Tapachula and increase family income in the trade
area,

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 SHOPPING CENTERS / RETAILERS

 Our preliminary market analysis of Tapachula shows low saturation in shopping center / retailers
activity,

 Our preliminary analysis for Tapachula also detected uncovered consumer needs such as:
entertainment (CINEMA COMPLEX), big department stores (HOME DEPOT/OFFICE
DEPOT/SUBURBIA/C&A), restaurants (SANBORNS/MC DONALDS/SUHI ITTO/OTROS) and GAFO stores,

 CREA has identified the following retailers / competitors in the City of Tapachula:
- 1 SAM’S CLUB / SUPERMARKET,
- 1 CHEDRAUI / SUPERMARKET,
- 3 BODEGA AURRERA ¡V WAL MART / SUPERMARKET,
- 3 RIALFER / SMALL LOCAL SUPERMARKET
- 3 PITICO / SMALL LOCAL SUPERMARKET
- 1 CINEPOLIS / MOVIE THEATRE
- 1 FABRICAS DE FRANCIA / DEPARTMENT STORE
- 4 ELEKTRAS / SMALL DEPARTMENT STORE,
- 2 MILANO / SMALL DEPARTMENT STORE,
- 2 SALINAS Y ROCHA / SMALL DEPARTMENT STORE,
- 2 COPPEL / SMALL DEPARTMENT STORE
- 1 VIPS / RESTAURANT,
- 4 BURGER KING, AND
- 3 DOMINOS PIZZA