Mexico City, Mexico: Market Study

Mexico City, Mexico
MARKET STUDY
Table of Contents
1.0 Project Background .................................................................................................................................. 3
2.0 Project Objectives ..................................................................................................................................... 4
3.0 Mexico City, Mexico ................................................................................................................................ 5

3.1 General Market Overview ........................................................................................................5
3.2 Mexico City Economic Structure............................................................................................. 6
3.3 Population Composition ........................................................................................................ 7
3.4 Mexico City: Delineation of Geography ...................................................................................8
3.5 Geo-Demographic Market Segmentation ............................................................................... 8
3.6 Socio Economic Levels.......................................................................................................... 9
3.7 Mexico City Retail Inventory ................................................................................................. 12
3.8 Mexico City Transportation System .......................................................................................14
4.0 Amway Store Distribution Optimization ....................................................................................................15
4.1 Market Zones/Trade Area Delineation ................................................................................... 15

4.2 Geo-Demographic Summary by Market Zones/Trade Area .................................................. 15
5.0 Mexico City Zone Market Studies ..........................................................................................................17

5.1 Mexico City Neighborhood Characteristics...............................................................................17
5.2 Mexico City Neighborhoods ...................................................................................................18

6.0 Amway Expansion Program Summary ................................................................................................... 35
6.1 Geo-Demographic Snap-Shot ............................................................................................. 35

6.2 Zone and Trade Areas .......................................................................................................... 35

7.0 Amway Site Specific Survey .................................................................................................................... 39
8.0 NAI Global Network .............................................................................................................................. 41
8.1 Mexico City, Mexico Market Survey ..................................................................................... 41

8.2 NAI Mexico City, Mexico Office Profile ............................................................................... 42
8.3 Global Contact Information ................................................................................................. 43
9.0 Catchment Areas .................................................................................................................................. 44
9.1 City of Mexico – Catchment Areas ....................................................................................... 44

9.2 Hot Spot Catchment Areas ................................................................................................. 45
9.3 Zones: Catchment Areas .................................................................................................... 46
9.4 Rank of Catchment Zones by Population.............................................................................. 47
9.3.1 North Catchments ................................................................................................. 47
9.3.2 Centro Catchments ............................................................................................... 49
9.3.3 West Catchments .................................................................................................. 51
9.3.4 East Catchments ................................................................................................... 53
9.3.5 South Catchments ................................................................................................. 55
9.5 Top Target Catchments ....................................................................................................... 57
9.6 Catchment Survey .............................................................................................................. 58
9.7 Catchment Clusters ............................................................................................................ 48
9.7 Subway Overlay .................................................................................................................. 60
10.0 Conclusions and Recommendations ..................................................................................................... 61
Appendix A: Site Survey ................................................................................................................................ 63

Appendix B: Supporting Geo-Demographic Maps ......................................................................................... 71

1.0 Project Background
In February 2008 management teams at NAI Global and Amway discussed Amway’s international expansion
objectives into Latin and South America. NAI Global Market Analytics outlined the scope of services and global
market analytic capabilities. In short, NAI proposed two unique programs which could be developed for a
specific city.
1. Market Light
2. Market Analytics
Amway is interested in a store expansion program into Mexico and challenged NAI to identify profiled sites that
it could evaluate to support the launch for Mexican storefronts. Amway management requested further support
through two NAI services in Mexico:
1. Comprehensive market analysis and analytics to establish optimal trade areas.

2. Site Selection for the most optimal sites in each submarket.
Amway instructed NAI to provide a Market Analytics program for Mexico City, Mexico. NAI’s assignment is to:
1. Complete the market assessment.

2. Identify major submarkets.
3. Recommend particular submarkets which meet the targeted geo-segment(s).
4. Analyze and present optimal sites meeting Amway’s selection criteria in each submarket.
5. Include individual assessments of each site for project team review.
NAI and Amway will review the format of the analysis and modify if required for the next phase of the project.
The results and conclusions are included in this document.

2.0 Project Objectives
The principal objective is to determine how to analyze current opportunities for Amway in Mexico and the
optimal entry strategy into the Mexican marketplace. This is a multifaceted initiative that may consider several
operational component services across a broad platform from market investigation through site selection and
control of sites supporting a master market strategy.
The primary purpose was to undertake a complete market assessment of the Mexico City market and
demonstrate the capabilities of NAI in the Mexican marketplace.
NAI is not your typical provider of real estate services. Our philosophy is to bring forward to Amway a
methodology from market understanding through site selection and securing the optimal store location(s). Our
process is deliberate. NAI does not provide simple sites from which the client weighs the pros and cons before
making an investment decision.
Our objective is to demonstrate to Amway our seamless approach to working in Mexico and to develop with
them a comprehensive expansion program for the country that is practical, efficient and risk free.
The following paper is NAI’s strategy paper for entry by Amway into Mexico City, Mexico.

3.0 Mexico City, Mexico
3.1 Market Overview –

Mexico City, Mexico
Mexico City forms the core of the Federal District
and is the commercial, industrial, financial, political
and cultural center of the nation. Among its diverse
and important manufactures are chemicals, petro-
leum, food products, textiles, automobiles, ma-
chinery, pharmaceuticals and consumer items. The
population has increased rapidly in a city that had
already spread out into many residential sections
called colonias. Iztapalapa and Gustavo A. Madero
are the largest suburbs of the Federal District;
Coyoacán is the oldest, with a palace built by Cor-
tés. The metropolitan area of Mexico City is currently
the largest in the world, but it suffers from severe
overcrowding. There are many run-down neighbor-
hoods without essential services and large
areas inhabited by squatters. it is estimated that
close to one third of the city’s residents are without
sewage facilities. Mexico City, also called Zona Met-
ropolitana de la Ciudad de México (ZMCM), lies in
a high altitude basin almost completely surrounded
by hills and mountains (including dormant/active
During 2001, Mexico’s total population base exceeded 100 mil-
volcanoes) with an opening to the north.
lion, of which at least two-thirds are considered to be urban by
virtue of inhabiting communities with more than 15,000 residents
Greater Mexico City incorporates some 58 adjacent municipali-
(see map below). 33 million Mexicans now live in cities with over
ties of Mexico State and 1 municipality of the state of Hidalgo. In
1 million inhabitants, another 21 million live in medium size cities
2006, Greater Mexico City had a population of 19.2 million, mak-
between 100,000 and 1 million, while a further 15 million live in
ing it the largest metropolitan area in the western hemisphere and
smaller towns and cities. Clearly, the concentration of population
the second largest city in the world.
can be found in the central portion of the country, with Mexico
City the focal node of population density.
Paseo de la Reforma, the city’s main thoroughfare
has been referred to as the “Manhattan” of Latin
America. This elegant boulevard is lined with
dozens of magnificent monuments including the
much-photographed Independence Monument,
which has become the unofficial trademark of
Mexico City. Sharing space along Paseo de la
Reforma are modern high-rise office buildings,
embassies, luxury hotels, colonial mansions,
various monuments and shaded pedestrian
promenades.
The neighborhoods, or colonias, of Centro

Histórico, Zona Rosa, Polanco, Roma, Condesa
and Lomas de Chapultepec are all fairly close
each other and also to Paseo de la Reforma.
These are the principal areas in the central part of
the city most popular with tourists. In the south-
ern part of the city are the suburbs of San Angel
and Coyoacan along with the Floating Gardens of
Xochimilco.

3.2 Mexico City Economic GDP - per capita (PPP):

Structure $12,500 (2007 est.)
Current economic activities have not pre- Labor force - by occupation:

vented an increase in unemployment and Agriculture: 18%
the activity distribution has also changed. Industry: 24%
Economic activities are classified as: (A) Services: 58% (2003)
Agriculture and cattle rearing, (B) Com-
merce, (C) Communications and trans- Unemployment rate:
portation, (D) Construction, (F) Mining, (G) 3.7% plus underemployment of perhaps
Government, (H) Not specified, (I) Petro- 25% (2007 est.)
leum and gas extraction, (J) Services and 70% percent of the population of the Fed-
(K) Manufacturing industry. Services and eral District involved in third class activity Population below poverty line:
manufacturing have become major activi- (services), 20% on secondary activities 13.8% using food-based definition of
ties since 1990. (manufacturing industry) and almost none poverty; asset based poverty amounted to
on the primary (extraction industry). In the more than 40% (2006)
State of Mexico the percentages are 50%,
30% and 10%, respectively. Household income or consump-
tion by percentage share:
Mexico has a free market economy in the Lowest 10%: 1.2%
trillion dollar class. It contains a mixture Highest 10%: 37% (2006)
of modern and outmoded industry and
agriculture, increasingly dominated by Real estate in Mexico City is somewhat
the private sector. Recent administrations different than what the average person
have expanded competition in seaports, might expect in a city of this size. There
railroads, telecommunications, electric- are many upscale neighborhoods which
ity generation, natural gas distribution offer beautiful homes and condos, some
and airports. Per capita income is one- with gated entry. The problem is find-
fourth that of the U.S.; income distribution ing affordable middle class housing in a
remains highly unequal. Trade with the desirable neighborhood. As much of the
U.S. and Canada has tripled since the real estate activity in Mexico City is due to
implementation of NAFTA in 1994. Mexico relocation by large corporations, much of
has 12 free trade agreements with over 40 the local housing tends to be subsidized
countries including Guatemala, Honduras, or even provided by the employer.
El Salvador, the European Free Trade Area
and Japan, putting more than 90% of The suburbs surrounding the downtown
trade under free trade agreements. area offer some relief from the fast pace
of the city. There are many nice upper and
In 2007, during his first year in office, upper middle class developments and
Felipe Calderon was able to garner neighborhoods in the southern section of
Inside the Metropolitan Area (Federal support from the opposition to success- the city which offer a very comfortable life-
District and State of Mexico), general fully pass a pension and fiscal reform. The style as well as a good value for a potential
economic trends are similar with around administration continues to face many buyer. Real estate prices in Mexico City
economic challenges including the need are generally higher than those in other
to upgrade infrastructure, modernize labor Mexican cities and equal to, or higher
laws and allow private investment in the than, many of the beach resort areas of
energy sector. Mexico.
Real growth rate:

3% (2007 est.) Economic priorities are
reducing poverty and creating jobs.

Number of Inhabitants per Size of Locality
3.3 Population Composition

The distribution of inhabitants within urban areas is not well
balanced in the Federal District, as most of the population is
concentrated in a small number of localities. 1.2% of the total
number of urban zones is home to 62.87% of the population; a
further 1.8% of the urban areas have 34.91% of total inhabitants;
and the rest are localities with less than 50,000 inhabitants. It is
important to point out that 80.17% of Federal District localities
have less than 100 inhabitants which represents 0.11% of total
population.
3.4 Geographic Delineation

There are some 33 submarkets which comprise the Greater
Mexico City marketplace. The following map illustrates the 16
districts and the 17 counties which ring the Federal District. The
entire State of Mexico is comprised of some 2,300 colonias or
neighborhoods.Each Colonia/neighborhood market has been
captured with the following information:
A) Socio-Economic Strata
B) Total Population
C) Total Income
D) Age Distribution (4 levels)
Appendix B shows the tables of the above data for each Colonia
(2,300 individual catchment zones).

3.5 Mexico City: Delineation of Geography

Taking a more concentrated view of the city, the map below shows the core 16 districts which will be evaluated in greater detail in the
market studies section. Within each of the 16 districts, a number of colonias or catchment zones are created in order to further refine
the site selection process.
3.6 Geo-Demographic Market Segmentation
Country Socio-Economic Level Categories

Argentina A, B, C1, C2, C3, D, E
Brazil A, B, C, D, E
Chile A, B, C1, C2, C3, D
Colombia 6 (Alto Alto), 5 (Alto), 4 (Medio Alto), 3 (Medio
Bajo), 2 (Bajo Alto), 1 (Bajo)
Costa Rica Alto, Medio, Bajo
Ecuador Alto, Medio, Bajo
Guatamala Alto, Medio, Bajo
Mexico A, B, C+, C, D+, D, E
Panama Alto, Medio, Bajo
Paraguay Alto, Medio, Bajo
The table on the following page indicates the five socio-economic
Peru A, B, C, D, E levels that are commonly used throughout South America to
Uruguay A, B, C1, C2, C3, D1, D2, DE classify the resident population. In addition, photo snap shots are
also shown to illustrate the relative housing differences between
Venezuela A, B, C, D, E
each level.

Level A Level B Level C Level D Level E

Family Households headed by Households headed by Middle income Laborers Occasional laborer
Description businessmen, or principals Professionals
in companies
Families at this level for 3 or

more generations
Urban/ Housing Large mansions or luxury Large houses Medium sized house/ Small house/condo Housing small
Description residents condo and poor
Higher end condos
Living/ High end furnishings Costly furnishings Medium cost furnishing Few electrical appliances Few furnishings but
Consumer with variety of electrical own radio and TV
Habits Late model luxury car New model cars appliances One car 10 yrs old
Primary gov’t
Own a beach home Own two cars around 4 education
yrs old
Kids in private school Entire family will work
Family Over 60 times min. salary Between 30 times and 59 Between 10 times and 29 Between 10 times and 29 Less than $1,500
Income $24,000 pesos times min. salary $10,000 times min. saary $3,000 times min. salary $1,500 and pesos
and $24,000 pesos and $9,000 pesos $3,000 pesos
Socio-Economic Level A
n Multi-millionaires with inherited wealth.
n Own rent producing properties.
n Living in extreme luxury.
n Residences located in exclusive residential neighborhoods.
Socio-Economic Level B
n Multi-millionaires.
n Own rent producing properties.
n Live in comfortable luxury.
n Residences located in exclusive residential neighborhoods.
Socio-Economic Level C1
n Living like the rich, but not really so.
n Earn high salary at work.
n High-level executives or professionals at large firms.
n Living in as much luxury as salary allows.
n Same habits as Levels “A” and “B” for mass consumption.
n Different from Levels “A” and “B” in that they will be affected if they have to quit work.
n Members of first-class clubs and organizations. Children enrolled in first-class schools.
n Own or rent residences in residential zones.

n Living in comfortable style.
n Earning middle salary at work.
n Professionals, executives or employees of mid-sized businesses.
n Enjoy some of the nice things of life.
n Able to easily meet their primary needs.
n Live in detached houses or modern buildings in middle-housing areas.
n Social positions depend on economic situation.
n Able to enjoy some conveniences but at the cost of economic sacrifice.
n Able to meet their primary needs.
n Employees of small business or informal company.
n Lower or middle income.
n Large family sizes.
n Live in heavily populated areas.
n Live in apartment buildings or small detached houses.
Socio-Economic Level D
n Almost no convenience goods.
n Barely able to meet primary needs.
n Low-level workers at small companies.
n Generally large family sizes.
n Living in heavily populated areas or informal housing.
Socio-Economic Level E
n Unable to afford any products or services.
n Almost unable to meet their primary needs.
n No steady work.
n Generally large family sizes.
n Living in makeshift housing in marginal zones
The bar chart to the left displays the socio-economic composi-

tion of Mexico. Levels 1, 2 and 3 represent the more affluent
upper scale residents across the county while groups 4 through
7 illustrate the emerging middle class. Groups 8 through 10
represent the low income population.
The stabilization of the banking sector has evolved to the stage

whereby banks are now offering credit to consumers to
purchase cars, lines of credit and mortgages. As a result, the
social composition of Mexico has seen some significant
“adjustments” to the socio-economic levels across all of Mexico.
As illustrated in the bar chart, there has been a noticeable shift in
the socio-economic composition of Mexico with the emergence
of a very large and growing middle class.
10
Inner-city rental slums rental slums (vecin-

dades): These slums date from the late
19th century and comprise houses aban-
doned by the wealthy and converted into
tenements for the poor, providing the
model for purpose-built cheap rental hous-
ing. After the 1940’s, the production of
rented vecindades continued in the periph-
eral irregular settlements; but here, unlike in
the inner city, the landlords are often slum
dwellers themselves. About 10 percent of
all housing in Mexico City is in vecindades.
Ciudades perdidas: This is a broad con-

cept referring to small-scale pockets of
shanty housing on vacant land or undesir-
able urban locations. These are no longer
quantitatively important as a form of slum.
Cuartos de azotea: These are servants’

quarters and makeshift accommodations
on the roofs of apartments or early public
housing. They are almost invariably well lo-
cated in central areas and provide 0.4 per-
cent of all of Mexico City’s housing units.
Deteriorated public housing projects: Many

formally produced, subsidized owner-occu-
pied housing projects built for the working
classes have become highly deteriorated,
with overcrowding and other social prob-
lems. As much as 15 percent of Mexico
City’s population now lives in govern-
ment-financed housing projects of variable
quality.
The vast majority of the precarious settle-

ments’ occupants are homeowners. Only 7
percent of the housing in the worst areas is
rented, compared to a metropolitan aver-
age of 17.3 percent. In the central areas,
the traditional vecindades and other rental
accommodations continue to lose popula-
tion and are destroyed due to aging and
Housing Composition land-use changes. Apart from the highly
successful housing reconstruction program
Colonias populares: The most critical housing conditions are in the newer or uncon-
after the 1985 earthquake, further projects
solidated irregular settlements, or colonias populares, resulting from unauthorized land
for re-populating the city center have had
development and construction. These areas have deficits in urban services, are often
limited impact since they are severely ham-
high-risk areas and those living there do so with dubious property titles. Most settle-
pered by a lack of viable finance and land
ments have been improved to varying degrees as property is regularized, infrastructure
for development.
and services are put in and houses are solidly built. Yet, the colonias never become
completely regular. Legalized properties become irregular again through intestate inheri-
Many public housing projects throughout
tance, dilapidation or fiscal problems. Irregular settlements constitute roughly half of the
the city are becoming slums. Inadequate
urbanized area and house more than 60 percent of the population.
11
self-administration of these projects has led to lack of mainte- of precarious construction, risks from landslides or flooding and
nance, invasion, degradation of public space, structurally danger- insufficient services are compounded by deterioration and over-
ous alterations and bad neighborhood relations. All of this is ag- crowding. The advantages of irregular settlements are flexibility
gravated by the original cheap construction, low space standards and relatively large plots that accommodate extended families
and the increasing impoverishment of their working-class occu- and second or third generations. In the last decade, financial sub-
pants, smitten by unemployment, alcohol and drug dependency, sidies have been directed at formal commercial developments of
social violence and high crime rates. mass-produced tiny single-family houses on the extreme outskirts
of the city.
Irregular settlements continue to develop in a more dispersed
and differentiated manner, especially in the metropolitan munici- About two-thirds of Mexico City’s population live in colonias
palities. The city is growing disproportionately to demographic populares; but by no means should all be considered to be ‘slum
increase, accommodating smaller families and an aging popula- dwellers’. In fact, most colonias contain some degree of social
tion. Nevertheless, most of the city has been built now, and what heterogeneity. The distinguishing characteristic of hopeless slums
happens within existing colonias will determine the quality of is not so much the poverty of all of their inhabitants, but, rather,
future habitats for the majority of the poor. The original problems the absence of middle and high-income families.
3.7 Mexico City Retail Inventory ous, one-of-a-kind,

crafts and antique
Mexico City is home to some of the largest and most modern stores. Flea markets
shopping malls in Latin America. These malls feature upscale tend to pop up in
shops, chic restaurants, fast food courts, high-end department some areas of Zona
stores, multi-cinemas and some of the most imaginative displays Rosa on the week-
you will see ends. You will also
anywhere. find many sidewalk
The malls cafes and some of
and some the city’s more popu-
truly unique lar restaurants and
shopping clubs here.
neighbor-
hoods are Condesa is a fashionable, but relaxed, neighborhood south of
spread out Zona Rosa that has become popular with the artistic crowd. The
all over the many art deco buildings and old European style townhouses are
city. a pleasant and peaceful diversion from the busier pace of the
adjoining neighborhoods. This is a great area to spend a leisurely
Mercado’s afternoon strolling among the many boutiques, art galleries,
(market bistros, and sidewalk cafes that have made this area popular with
places) are locals. Parque Mexico, a well kept green area, offers a somewhat
another quiet area for relaxation.
popular shopping experience to be found all over Mexico City.
The many local Mercado’s range in size from small, impromptu, Polanco is
flea markets set up in minutes to sprawling outdoor affairs selling an upscale
furniture to elaborate buildings with 200 or 300 separate stalls. residential and
commercial
Downtown, in the general area of the Zócalo, there are numerous district that
shops and market places, some located in converted colonial is filled with
era mansions. Some of the areas markets sell only curios and elegant shops,
trinkets; others sell serious antiques, custom jewelry, fine gold boutiques and
and pearls. On Sundays, La Lagunilla market hosts a flea market malls, selling
of interest to those who collect antiques or coins. high-end silver
items, designer
In the Zona Rosa district you will find a number of small shops fashions,
and small walk-in shopping arcades housing art galleries, jewelry crafts, Tala-
stores, boutiques and silver stores. This area is home to numer- vera pottery
12
theater, an international exhibition center, hotels and

several restaurants. It is in the wealthy Santa Fe dis-
trict, which, in recent years, has become the favored
office real-estate property in the city. Santa Fe Mall
is the result of a very ambitious visionary project that
makes it currently the largest shopping center in Latin
America. You can find the most important depart-
ment stores in the country here, such as El Palacio de
Hierro, Liverpool and Sears. The parking lot has space
and china. The Presidente Masaryk area of Polanco for over 5,000 cars.
is where you will find the shops of famous design-
ers such as Gucci, Christian Dior and Hermés along La Ciudadela
with some incredible restaurants and sidewalk cafes It is home to the most important handicraft exhibi-
thrown in for good measure. This area is often com- tion in all Mexico, with more than 300 workshops and
pared to the ultra trendy Rodeo Drive in Los Angeles. stands; they
will even ship
The Southern your purchases
section of the city internationally.
is the favorite area Here you can
of many Mexico find craftsmen
City residents. from different
The Perisur and ethnic groups,
Coyoacan malls such as Zapo-
are located here. tecs, Otomis,
Perisur is well-lo- Mazahuas,
cated in the south Purepechas,
of the city and is easily accessible. In Perisur, a large Mayas, Mixtecs and Huichols who make the work that
chain of Mexican movie theaters called Cinepolis gives La Ciudadela its international fame.
has created one of the most amazing and innovative
entertainment areas in Latin America. They feature Mundo E
20 screens, including 4 VIP auditoriums and a host of Carefully planned to allow for future expansion, Mundo
concession stands. Perisur, one of the most important E is the most attractive shopping and entertainment
financial areas of the city, also has a huge variety of center in Mexico City. It features outstanding inter-
additional stores such as travel agencies, opticians, national-cuisine restaurants and almost 150 stores,
beauty salons and phone stores. of which about a hundred are boutiques by the most
prestigious brands. You will also find a movie theater
Due mainly to their elegant colonial atmosphere, the complex featuring the only digital screen in Mexico.
suburbs of San Angel and Coyoacán
are considered by many to be the
only place to visit when vacationing in
the capital. San Angel is famous for
its Bazar Sábado (Saturday Market)
held in Plaza San Jacinto. The indoor
market features higher quality goods,
but the outside portion is known for
better prices. Coyoacan is a tradition-
al colonial neighborhood with cobbled
streets filled with libraries and lots of
history. You will find many boutiques
and handicraft stores where the
craftsmen sell their work.
Santa Fe
Santa Fe is the largest mall in Latin
America, with 285 stores, a movie 13
3.8 Mexico City Transportation previous table breaks down the types of transpora-
tion.
According to information provided by the city govern-
ment, in 2007, most people travelled around Mexico Mexico City also maintains a very extensive subway
City using public transportation (74.1%) system with 10 distinct lines that provide coverage to
a large portion of the inner city. The map below shows
the individual subway lines and stations. The Mexico
City Subway System is the largest mass transporta-
tion system in Mexico. The network is integrated by
11 different lines with 175 stations of which 22 are
terminals. Of the 175 stations, 106 are underground.
The number of passengers, trips per person, type and

number of vehicles, electric public transport, subway
characteristics and the general transportation net
were provided by the ZMCM authority Passengers.
The main reason to travel is to move from home to

work or school, and back again. Peak traffic occurs at
8:00am, 2:00pm and 6:00pm on weekdays.
Mexico City, being the biggest urban population
center in the world, and spread over a large area, has
very demanding transportation needs. 84% of its
inhabitants use public transport, which accounts
for 7% of the total number of vehicles on the roads.
Private vehicles make up 85% of the remainder, and
freight 16%. This situation creates the following urban
problems: heavy vehicles, pedestrian movement,
heavy road congestion, high pollution due to fuel
consumption and low efficiency of public service. The
14
4.0 Amway Store
Distribution Optimization
The initial step is to divide Mexico City into five large zones. As indicated in the market overview section, each zone is comprised of a
number of smaller communities; however, in order to obtain some level of market understanding the five geographic zones were
delineated. Each market zone offers some degree of distinction from the other; however, given the magnitude of the city, no single
zone is home to a single socio-economic segment.

4.1 Market Zones/Trade Area Delineation
With the city divided into distinct zones, it is necessary to evaluate each market area on its own merit to determine if the local trade
area is a suitable option for an Amway location.
4.2 Geo-Demographic Summary Primary SEL Total Income Total Population

No segment is mutually exclusive to one particular mar- A/B 1,070,190,115 563,967
ket area. In most instances a dominant level is evident, C+ 953,056,848 1,175,678
yet pockets of other segments do co-exist. The table
below indicates the population distribution across the
C- 822,483,300 1,934,823
five major zones. The majority of the population base of D+ 662,029,784 3,177,809
Mexico City resides across both the C and D levels. It is D- 175,020,420 1,951,378
interesting to note that over past several years a number
of local residents have successfully transitioned them- E 347,053 13,856
selves out of the “E” socio-economic level into the D- Total 3,683,127,520 8,817,511
and higher levels. As illustrated on the map below, there
are few pockets of E level residents in Mexico City.
15
4.0 Amway Store
Distribution Optimization
It is interesting to note that the socio-economic groups are delineated by “rings”. The
map shows that in the “center” of the city resides the most affluent people (A/B) with the
C+ level circling around the A/B followed by the C- and through to the D- areas which
are predominantly located on the outer ring of the city (shown in green).
16
5.0 Mexico City Zone
Market Studies
5.1 Mexico City Neighborhood Characteristics
Centro - Covers the historic downtown of Mexico City.
Condesa - Artistic district notable for its Art Deco architecture.
Roma - Beaux Arts neighborhood next to Condesa, one of the oldest
in Mexico City.
Ciudad Satélite - Upper middle class suburban residential
neighborhood.
Coyoacán - Town founded by Cortés, swallowed by the city in the 50’s.
Del Valle - Cradle of José López Portillo and other important people in
Mexican history.
Lomas de Chapultepec - Upscale residential neighborhood.
Colonia Nápoles - Middle class.
San Ángel - Colonial town swallowed by the city.
Santa Fe - Financial and business district.
Jardines del Pedregal - Upscale residential neighborhood.
Polanco - Shopping, business and tourist area.
Tepito - Popular flea market.
Tlatelolco - Site of the Plaza de las Tres Culturas. High-density
neighborhood.
Villa Coapa - Middle class neighborhood.
Zona Rosa - Shopping district and tourist area.
17
Market Studies
Alvaro Obregon area has increased from a density of 4,874 hab/km2

in 1970 to 7,083 hab/km2 in 2000. The District is
Alvaro Obregón is located along the west side Mexico formed by 257 colonies, divisions and districts with
City and is 97 square miles, which represents 6.5% the following being most important: San Angel, San
percent of the total area of the Federal District and Angel In, Tlacopac, Hermitage, Chimalistac, Florida,
is 6th largest in size of all the neighborhoods. The and Pedregal of San Angel.
geographic limits of this area are: the North with the
neighborhood of Miguel Noble; to the East with the The minimum wage in Mexico City is 52.59 pesos a
neighborhoods of Benito Juárez, Coyoacán and Tlal- day ($4.85 US). The minimum wage in the Federal
pan; to the South with the neighborhoods of Magda- District (Distrito Federal D.F.), which encompasses
lena and Contreras; Tlalpan and State of Mexico are Mexico City, is considerably higher than in other parts
to the West. of the country, and there are also higher minimum
wages established for some industries. Salaries can
According to the 2000 Census, the population of the be established according to unit of time or work, a
neighborhood was 687,020 (359,589 women and lump sum, commission or any other criteria to which
327,431 men). The population of Alvaro Obregón the parties agree. Most employees earn between 1
accounts for 7.98% of the total population of the and 2 times the minimum wage.
Federal District. The growth of the population in the
18
Market Studies
The illiteracy level has decreased in the last decade, per house in 2000 was 4.1 people, while 20 years ago
in 1970 13.3% of the population of 15 years and over it was 5.2 people per house. This average is higher
did not know how to read or write; thirty years later than the Federal District which was 5.0 in 1980 and
this percentage has fallen to 3.4%. In 2000, 6 out of 4.0 for the 2000.
every 100 people did not have primary instruction,
31 obtained a basic average education and 56 pos- Workers in the area are predominantly employed
sessed superior educations. For the 1998-99 school in the following sectors: Commerce, Construction,
year Alvaro Obregón had 164,357 students, 7,875 “Other Services” and Manufacturing.
teachers and 563 establishments.
The table below provides a comprehensive detail of
In 2000, 165,186 houses existed in the neighborhood; the education background of the residents within
which was an increase of 42,950 more than 1980. Alvaro Obregon. A large number of people (163,635)
During the period between1990-2000, Alvaro Ob- have only a primary level of education compared with
regón experienced a growth rate of 2.1% which was a slightly higher number (208,285) that have a univer-
the 8th largest of the Districts. The average occupant sity degree.
Population - 12 years and more - schooling - secondary and technical or commercial studies
With
Without post instruction
primary average
Age Group instruction Secondary instruction and technical or commercial studies superior Not Specified
Secondary Technical or commercial studies with primary finished
1 G rade 2 G rade 3 G rade N ot specified 1 G rade 2 G rade 3 G rade N ot specified
19 and under 8,715 4,478 4,810 7,397 42 4 2 3 0 14,633 140

20 - 29 4,057 358 641 6,584 1 10 8 37 3 50,777 368
30 - 39 3,831 235 526 5,451 0 9 39 178 11 49,292 463
40 - 49 5,320 265 515 4,671 1 38 147 679 43 39,228 442
50 - 59 6,151 212 404 3,573 0 53 202 1,124 40 23,081 397
60 and over 16,805 504 878 6,639 4 94 392 1,929 107 23,105 665
T otal 44,879 6,052 7,774 34,315 48 208 790 3,950 204 200,116 2,475
19
Market Studies
Azapotzalco
Azcapotzalco is located in the northeast part of the
Federal District, bordering the boroughs Gustavo A.
Madero, Cuauhtémoc and Miguel Hidalgo, as well
as the Mexico State municipalities of Naucalpan and
Tlalnepantla. The total population is 441,008, com-
is 33.3 sq. km. The population density per sq. km. is

13,230 people.
23% of the working population earns over 5 times

the minimum wage. Surprisingly, despite the lower
prised of 210,101 men and 230,907 women. This than average level of education that is prevalent in the
population accounts for 7.88% of the total population community, few individuals fall below the minimum
of the Federal District. The physical size of the District wage benchmark.
Over 1/3 of the working population is em-

ployed in Manufacturing and Commerce. Ad-
ditional employment is captured largely in the
Hotel sector and in Educational services.
21.59% of the population over the age of 12

has no education over the primary grades,
while 35% of the population has obtained
instruction over secondary or technical stan-
dards. However, the fact remains that a sig-
nificant portion of the local population base
has achieved a modest level of education.
Population - 12 years and more - schooling - Distribution according to instruction level

With
primary average

N ot
1 G rade 2 G rade 3 G rade specified 1 G rade 2 G rade 3 G rade N ot specified
19 and under 12,580 7,824 8,140 12,976 38 8 6 11 2 18,645 202
20 - 29 7,501 1,245 2,507 19,359 3 13 45 125 5 52,983 477
30 - 39 11,522 939 2,041 15,519 3 34 132 432 10 42,035 416
40 - 49 16,083 634 1,283 8,697 4 70 317 1,034 30 23,688 355
50 - 59 17,669 415 762 4,689 1 66 252 1,047 15 10,519 274
60 and over 29,875 483 707 3,753 1 81 233 957 16 7,140 384
20 Total 95,230 11,540 15,440 64,993 50 272 985 3,606 78 155,010 2,108
Market Studies
Benito Juárez
The neighborhood of Benito Juárez is located in the
geographic center of the City of Mexico. It borders
to the north the neighborhoods of Miguel Hidalgo
and Cuauhtémoc; to the south Coyoacán; to the
east Iztapalapa and Iztacalco, and to the west Alvaro
Obregón.
materials. Of the homes which are constructed with

suitable materials, 27% are houses and 62% are
apartment buildings. 99.2% of the houses have ac-
cess to running water, 99.5% to sewage and 100%
have electricity.
The Benito Juárez neighborhood has a 98.9%

literacy rate with its residents having an average
In the year 2000, the neighborhood had a population schooling of 12.6 years, which speaks to its high
of 360,478 which represents 4.2% of the population socio-economic level.
of the Federal District. The population is
broken down into 44% men and 56%
women. The rate of growth between
1995 and 2000 was -0.28%. The pop-
ulation density of the neighborhood is
13,537 inhabitants per km2. Altogeth-
er, the neighborhood is formed by 56
colonies, where the 359,330 inhabit-
ants live in 115,912 houses.
Benito Juarez is classified as a very af-

fluent community with a large number
of the local residents making over 10
times the minimum wage.
The average number of residents per

house is 3.1. 93.9% of the total homes
built are constructed with suitable
With
primary average
19 and under 8,715 4,478 4,810 7,397 42 4 2 3 0 14,633 140

20 - 29 4,057 358 641 6,584 1 10 8 37 3 50,777 368
30 - 39 3,831 235 526 5,451 0 9 39 178 11 49,292 463
40 - 49 5,320 265 515 4,671 1 38 147 679 43 39,228 442
50 - 59 6,151 212 404 3,573 0 53 202 1,124 40 23,081 397
60 and over 16,805 504 878 6,639 4 94 392 1,929 107 23,105 665
T otal 44,879 6,052 7,774 34,315 48 208 790 3,950 204 200,116 2,475 21
Market Studies
Coyoacán
Coyoacán is located in the center of the Federal
District and borders Álvaro Obregón, Benito Juárez
and Iztapalapa boroughs. It ranks as the 4th most
combination of a large population and small size ac-

count for the high population density of 11,858 people
per sq. km.

The majority of all residents in this neighborhood
make 1-2 times the minimum wage or higher. The
populous District in the Federal District, with a popu- table demonstrates the strong income levels that are
lation of 640,423 people. Women out-populate the achieved across a number of ranges, leaving few
men; 339,994 women reside in the district and residents that fall below the minimum wage
300,429 are men. The district is 53.8 sq. km which is benchmark.
one of the smaller districts in physical size. The
The main focus of employment is largely in
the Commerce and Manufacturing sectors;
however, as the table illustrates the
community of Coyoacán employs individuals
across a number of sectors, including the
Government sector, “Other Services” and
Educational Services.
The table below provides a comprehen-

sive detail of the education background of
the residents within Coyoacán. While the
area maintains a large population base, a
significant portion of the community has a
primary education (113,610), compared with
over 275,000 people that have a university
degree.
With
primary average
19 and under 19,666 10,715 11,012 17,202 46 16 9 9 0 27,975 515

20 - 29 11,889 1,413 2,948 23,634 3 21 49 132 4 86,309 1,099
30 - 39 13,420 990 2,229 17,007 1 30 93 336 14 64,478 1,042
40 - 49 18,324 649 1,424 10,526 3 76 311 1,219 40 49,211 847
50 - 59 19,933 492 948 6,546 8 88 379 1,667 44 27,688 566
60 and over 30,378 558 902 6,091 5 114 408 1,764 68 19,709 792
22 T otal 113,610 14,817 19,463 81,006 66 345 1,249 5,127 170 275,370 4,861
Market Studies
Cuajimalpa de Morelos
Cuajimalpa is located in the center of Mexico City,
bordering with Álvaro Obregón and Miguel Hidalgo
boroughs.
Commerce, Manufacturing and Construction also

serve as a large source of employment in the area.

the educational background of the residents within
Cuajimalpa. While the area maintains one of the lower
level population bases, the level of education is almost
evenly split between those that have just a primary/
The population of the neighborhood is 151,222 which grade school education (36,490) and those that have
makes it one of the smaller districts of Mexico City. a post secondary education (40,764).
It accounts for only 2.7% of the total population. The
physical size of the district is 80.9 sq. km. resulting in
a population density of 1,867 people per
sq. km.
The Cuajimalpa community is largely

comprised of middle class to lower middle
class individuals. The vast majority of
people make approximately 1-2 times
minimum wage. A large percentage of the
population exceeds the minimum income
standards by as much as 10 times. It
should be noted that very few people
make below the minimum wage.
The main focus of employment in Cuaji-

malpa is largely concentrated in a clas-
sification measured as “Other Services”.
Without With
post instruction
primary average
19 and under 6,598 3,025 2,993 4,941 11 4 3 4 0 5,490 137

20 - 29 5,113 541 1,041 8,766 1 6 12 24 0 13,852 284
30 - 39 6,321 331 779 5,688 0 4 20 63 3 12,040 226
40 - 49 6,751 141 328 2,314 0 10 18 99 3 5,820 124
50 - 59 5,271 61 124 760 0 4 14 63 3 2,331 64
60 and over 6,436 35 71 467 0 2 14 32 0 1,231 88
T otal 36,490 4,134 5,336 22,936 12 30 81 285 9 40,764 923 23
Market Studies
Cuauhtémoc
Cuauhtémoc is the second most concentrated area
in terms of population in District Federal with 15,880
people per sq. km.
The Cuauhtémoc community is classified as a being

largely comprised of individuals that make significantly
The District of Cuauhtémoc covers only 32.4 sq. km. higher income levels than a minimum wage bench-
and has a population of over 500,000. This results mark. It should be noted that few people make below
in a population density of 15,880 people per sq. km. the minimum wage.
It is the second densest district in Mexico City. The
population of Cuauhtémoc accounts for 9.22% of the The main employment of Cuauhtémoc is in the
total population of the city. Commerce sector, where some 57,000 people are
employed. As noted in the table, outside of being
As illustrated in the above table a large portion of the employed in the Commerce sector, jobs are more
population in Cuauhtémoc is 19 years of age and evenly distributed across a number of sectors.
younger.
The table below provides a com-
prehensive detail of the educational
background of the residents within
Cuauhtémoc. A significant portion of
the community has a university degree
(196,000) compared with over 101,821
people that have a primary education.
A large percentage of the population
base has also acquired a secondary
and/or a technical education.
With
primary average
19 and under 15,275 8,851 9,224 14,266 75 13 6 8 3 20,324 363

20 - 29 9,145 1,528 2,779 19,928 3 27 42 99 7 59,305 689
30 - 39 12,190 1,022 2,133 15,841 6 49 126 406 22 49,351 689
40 - 49 16,207 779 1,535 10,281 1 99 358 1,038 55 34,510 555
50 - 59 16,348 515 927 5,766 6 92 372 1,188 42 17,705 421
60 and over 32,656 756 1,113 6,620 2 145 398 1,512 71 15,545 700
24 T otal 101,821 13,451 17,711 72,702 93 425 1,302 4,251 200 196,740 3,417
Market Studies
Gustavo A. Madero
Gustavo A. Madero is located in the north of the
Federal District, bordering Venustiano Carranza, Cu-
auhtémoc and Azcapotzalco boroughs as well as the

Gustavo A. Madero.A significant portion of the com-
Mexico State Ecatepec de Morelos, Nezahualcoyotl munity has a university degree (383,000) compared
and Tultitlán. The neighborhood is home to the world with 292,513 who have a primary education A sig-
famous Basilica of Guadalupe. nificant percentage of the population base acquired
a secondary and/or a technical education (approxi-
In 2000, the population was 1,233,922 but by mately 274,000).
the year 2005 the population had decreased to
1,193,161. The population density in 2005 was
14,245 people per sq. km. which was a
decrease from 2000 when it was 14,511
people per sq. km. Gustavo A. Madero
is the 5th largest neighborhood in size
covering 86.6 sq. km.
A large percentage of Gustavo Madero

residents make just above the minimum
wage (making only 1-2 times that of
the minimum wage). However, very few
people make below the minimum wage.
The local employment base is dominated

by Manufacturing and Commerce with
limited concentration of employment
across all other sectors.
With
primary average
N ot
1 G rade 2 G rade 3 G rade N ot specified 1 G rade 2 G rade 3 G rade specified
19 and under 40,115 23,437 24,117 38,534 49 29 15 12 3 50,432 574

20 - 29 29,843 4,297 8,112 63,229 14 45 80 169 3 134,297 1,237
30 - 39 41,041 3,058 6,385 47,589 7 84 266 767 8 100,459 990
40 - 49 50,163 1,634 3,500 23,810 7 161 618 2,163 30 55,734 649
50 - 59 49,282 1,048 1,943 11,700 3 156 694 2,322 40 25,890 494
60 and over 82,069 1,144 1,744 9,142 3 166 524 1,943 45 16,560 880
T otal 292,513 34,618 45,801 194,004 83 641 2,197 7,376 129 383,372 4,824 25
Market Studies
Iztacalco
Iztacalco was once simply the commercial center of
an agricultural (corn, beans, oats, and alfalfa) and
livestock-raising region, but, with the growth of the
federal capital, it has become part of Mexico City.
The industries in the area include canneries, chemical
The Iztacalco community is largely comprised of

individuals that make significantly higher income
levels than a minimum wage benchmark. It should
be noted that few people make below the minimum
wage.
plants and factories producing cardboard, mattresses,
furniture and hats. It is also known for its market. Izta- A large percentage of the community makes approxi-
calco is easily accessible by highway, railroad and air. mately 1-2 times that of the minimum wage.A large
Pop. (1990 prelim.) 448,357. portion of the residents make between 3 -5 times the
minimum wage.
Iztacalco is largely concentrated in Manufacturing and

Commerce. As the table clearly demonstrates these
two sectors dominate the labor pools in the area with
a limited number of jobs available across all other
verticals.

Iztacalco. While the area maintains a comparatively
smaller population base a large number of their
residents have only been able to achieve a very basic
level of education (92,910). Of note, a significant
percentage of the population base has a secondary
and/or a technical education (approximately 88,000).
Over 135,000 people have acquired a university level
education.
With
primary average
19 and under 12,339 7,450 7,670 12,292 20 8 5 4 1 16,627 236

20 - 29 8,172 1,308 2,559 19,278 1 21 27 74 4 46,918 616
30 - 39 11,530 880 2,065 15,133 4 14 73 284 9 36,735 516
40 - 49 15,364 603 1,217 8,337 0 48 196 672 12 20,893 359
50 - 59 16,576 382 708 4,184 1 64 211 634 21 8,373 248
60 and over 28,929 361 625 3,124 0 44 157 528 23 5,803 388
26 T otal 92,910 10,984 14,844 62,348 26 199 669 2,196 70 135,349 2,363
Market Studies
Iztapalapa
Iztapalapa is located in eastern Mexico City. It cov-
ers an area of 117 square kilometers. On the north
it borders the borough Iztacalco; on the west Benito
Juarez and Coyoacán; on the south Tláhuac and
onstrates, these two sectors dominate the employ

labor pools in the community with a limited number of
jobs available across all other verticals.
The bottom table provides a comprehensive detail of

Xochimilco; and on the east, the towns of Nezahual- the educational background of the residents within
cóyotl, La Paz and Valle de Chalco Solidaridad, in Iztapalapa. The area maintains a massive popula-
the state of México. At the time of the 2005 census, tion base with some 448,000 local residents having a
Iztapalapa had a population of 1,820,888, making it primary/grade school education with an equally high
the most populous borough of the Mexican capital, number of residents (452,000) having a university
and one of the most populous in the country. In 2000, education. Moreover a significant percentage of the
the population was 1,771,673. The neighborhood is population base has a secondary and/or a technical
one of the larger neighborhoods in the Federal District education (approximately 420,000).
at 115.0 sq. km. The population density per sq.
km. in 2005 was 15,826.
During the 1970’s the average house contained

more than 6 members. Due to an increase in
housing starts that number has now fallen to 3
or 4 members per house.
The Iztapalapa community is comprised of

individuals with income levels that are 1-3 times
above the minimum wage benchmark. Few
people make below the minimum wage.
Iztapalapa is largely concentrated in Manufac-

turing and Commerce. As the table clearly dem-
With
primary average
N ot
19 and under 71,783 36,283 36,663 61,012 234 32 13 17 3 67,743 1,415

20 - 29 57,177 7,244 13,540 104,295 15 47 86 186 11 170,932 2,909
30 - 39 74,342 4,577 9,558 72,047 19 83 271 701 32 121,109 2,143
40 - 49 88,124 2,457 4,917 34,062 5 145 606 1,743 74 60,389 1,424
50 - 59 73,167 1,264 2,223 13,341 3 119 506 1,619 64 21,779 1,058
60 and over 83,576 854 1,239 6,999 7 83 285 1,042 34 10,528 1,494
Total 448,169 52,679 68,140 291,756 283 509 1,767 5,308 218 452,480 10,443 27
Market Studies
Madalena Contreras
The name of the neighborhood refers to the 17th
century St. Maria Magdalena Chapel.
The Madalena Contreras neighborhood is largely

comprised of individuals that make approximately 1-2
times that of the minimum wage. In addition, a large
portion of the residents make between 3 -5 higher
income levels than a minimum wage benchmark. Few
In 2000 the population was 222,050 people of which people make below the minimum wage.
106,469 were men (48%) and 115,581 were women
(52%). In 2000 96.5% of the population knew how to The employment in Madalena Contreras is more even-
read and to write and had attended some schooling ly distributed across a number of industry verticals.
levels. The two large verticals for employment are Commerce
and “Other Services” followed closely by Construction
and Manufacturing.
The table below provides a comprehen-

sive detail of the educational background
of the residents within Madalena Contre-
ras. The education levels are very evenly
divided across the three core levels: pri-
mary/grade, high school/trade and post
secondary education (university).
Without With
post instruction
primary average
19 and under 9,237 4,323 4,345 6,944 19 3 3 1 1 7,622 204

20 - 29 7,344 943 1,934 12,129 2 3 10 33 1 21,579 413
30 - 39 9,078 600 1,311 8,305 2 15 32 85 1 15,589 321
40 - 49 10,285 312 556 3,534 1 18 54 216 2 9,152 195
50 - 59 8,773 125 263 1,493 1 14 47 211 3 4,531 105
60 and over 11,034 103 181 1,141 0 13 57 209 10 3,194 185
28 T otal 55,751 6,406 8,590 33,546 25 66 203 755 18 61,667 1,423
Market Studies
Miguel Hidalgo
The neighborhood of Miguel Hidalgo covers a very
small geographic area of just less than 47 sq. km.
The population in 2000 was 352,640 comprising of
Real Estate Services.

Miguel Hidalgo. Approximately 145,000 residents
192,508 women and 160,132 men. The population have post secondary education. 68,188 people have
density was 7,853 people per sq. km. a primary/grade school level of education. A large
number of the local population has a high school or
The Miguel Hidalgo neighborhood is largely comprised technical education.
of individuals that make approximately 1-2 times that
of the minimum wage. In addition, a large portion of
the residents make between
3 -5 times higher income
levels than a minimum wage
benchmark. Few people
make below the minimum
wage.
The main areas of employ-

ment by the residents are
Commerce and “Other
Services”, followed by
Manufacturing. Other sec-
tors which provide limited
employment are Construc-
tion, Professional Services,
Educational Services and
With
primary average
19 and under 10,306 5,389 5,741 9,376 46 12 6 3 1 14,707 206

20 - 29 7,301 770 1,598 12,737 0 17 24 65 5 42,657 583
30 - 39 8,290 634 1,388 10,088 0 24 78 255 6 35,027 550
40 - 49 10,356 410 885 5,992 2 41 179 630 11 24,177 428
50 - 59 10,859 292 512 3,388 0 42 185 741 22 14,431 327
60 and over 21,076 424 604 4,320 4 64 223 948 32 14,423 588
T otal 68,188 7,919 10,728 45,901 52 200 695 2,642 77 145,422 2,682 29
Market Studies
Milpa Alta
Milpa Alta covers an area of 228 sq. km. It presents a
heavily mountainous relief. It’s lowest point, San An-
tonio Tecomitl, has an altitude of 2,250 meters above The population of Milpa Alta has increased from
sea level, ten meters above the median altitude for 96,744 in 2000 to 115,895 by 2005. Milpa Alta has
Mexico City. Surrounding the Teuhtli volcano is a strip the lowest population density in the Federal District. In
of slightly sloped land that gradually becomes higher 2005, the population density was 408 people per sq.
moving west. This region, known as the Milpa Alta km. up from 341 in 2000.
Valley, inhabits most of the borough’s population.
Across Milpa Alta the majority of the local residents
Milpa Alta is the southern most of the neighorhoods have income levels that are 1-2 times above the mini-
of the Federal District. It borders Tlalpan, Xochimilco mum benchmark. There are fewer people positioned
and Tláhuac boroughs, as well as with the State of in the higher income brackets while there has been an
Morelos and Mexico State. increase in the number of people that make less than
the minimum wage
Unlike most neighborhoods, the

Milpa Alta employment base
is spread across a number of
verticals including Commerce,
Manufacturing, Construction
and Agriculture.
The table below provides a

comprehensive detail of the
educational background of the
residents within Milpa Alta. A
large percent of the residents
have very limited levels of
education.
With
primary average
19 and under 4,518 2,239 2,128 3,474 7 4 0 1 0 3,327 94

20 - 29 3,871 432 738 5,928 1 1 1 10 0 7,028 180
30 - 39 4,757 254 569 4,527 0 2 7 17 1 4,929 169
40 - 49 4,783 137 259 1,790 1 2 11 21 0 2,304 77
50 - 59 3,716 47 112 692 0 1 5 15 0 758 49
60 and over 5,098 35 56 261 1 3 4 11 0 366 88
30 T otal 26,743 3,144 3,862 16,672 10 13 28 75 1 18,712 657
Market Studies
Tláhuac
Tláhuac is located on the east edge of the district and
is largely rural in character. The main town, San Pedro
Tláhuac, is situated alongside a lake, and is the site of
a 16th century church.
The main focus of employment in Tlahuac is in Com-

merce and Manufacturing related jobs. As noted
in the table, a number of additional sectors support
limited levels of employment.

The population table illustrates the comparatively the educational background of the residents within
young age of the locals that reside in Tlahuac. Tlahuac. A large portion of the residents have very
limited levels of education.
The Tlahuac community is largely comprised of indi-
viduals that make approximately 1-2
times minimum wage. A large per-
centage of the population exceeds
the minimum income benchmark;
making anywhere from 2 -10 times
that of the minimum wage. Very few
people make below the minimum
wage.
With
primary average
19 and under 46,636 11,594 6,176 6,430 10,535 61 11 3 6 1 11,525

20 - 29 59,401 8,232 1,108 2,255 18,542 3 13 17 36 1 28,583
30 - 39 51,264 11,427 765 1,755 14,217 3 15 55 99 3 22,440
40 - 49 30,890 13,758 420 896 6,132 3 20 75 183 4 9,132
50 - 59 16,798 11,382 172 318 2,103 1 19 59 126 2 2,448
60 and over 15,602 13,322 92 164 767 0 8 22 59 2 940
T otal 220,591 69,715 8,733 11,818 52,296 71 86 231 509 13 75,068 31
Market Studies
Tlalpan
Tlalpan is located in the southeastern part of the
Federal District, bordering Contreras, Álvaro Obregón,
Coyoacán, Xochimilco and Milpa Alta boroughs as
well as the State of Morelos.
is urban with a population of 618,000 in 2004 and an

estimated 720,000 in 2005. The population growth
rate during the last 4 years has been approximately
1% a year; however the rural towns which account for
14% of the population are growing at a rate of almost
5%.
The Tlalpan community is largely comprised of

Tlalpan, is the largest county of Mexico City and individuals that make approximately 1-2 times the
located to the south of the City. It is composed of minimum wage. A large percentage of the population
both rural and urban areas making it different from exceeds the minimum income benchmark; making
other sectors of the City. 16.49% of its 304 sq. km., anywhere from 2 -10 times that of the minimum wage.
Very few people make below
the minimum wage.
While employment capacities

across the Tlalpan com-
munity suggest Commerce
related jobs are a key sector,
the table demonstrates a well
diversified employment base
which cross over a number
of sectors.
The table below provides a

comprehensive detail of the
educational background of
the residents within Tlalpan.
A large portion of the resi-
dents have very limited levels
of education.
Without With
post instruction
primary average
19 and under 88,388 23,577 11,080 11,472 18,064 32 17 11 5 0 23,722

20 - 29 116,924 17,242 2,032 3,852 26,768 1 26 24 125 1 65,930
30 - 39 91,680 20,004 1,271 2,683 18,469 6 29 91 274 3 48,231
40 - 49 69,090 22,588 686 1,476 9,214 4 49 186 702 16 33,664
50 - 59 42,911 18,385 382 662 4,327 2 42 181 885 13 17,665
60 and over 39,019 23,450 336 482 3,150 2 58 164 735 21 10,124
32 T otal 448,012 125,246 15,787 20,627 79,992 47 221 657 2,726 54 199,336
Market Studies
Venustiano Carranza
The neighborhood of Venustiano Carranza is located
in the center of the Federal District and is 3.342 hect-
ares in size, which represents 2.24% of the territory of
detail of the educational background of the residents

within Venustiano Carranza. Approximately 152,000
residents have post secondary education. In total
102,000 people have a primary/grade school level of
education. In addition, a significant number of local
residents maintain a high school or technical
education.
the Federal District. Of the 114,514 houses
surveyed in 2005, 392 had earth floors,
46,448 had cement floors, 66,0452 had tile
or other material floors and 1,632 were not
specified.
The Venustiano Carranza neighborhood is

largely comprised of individuals that make
approximately 1-2 times that of the mini-
mum wage. In addition, a large portion of
the residents make an income of between 3
-5 times minimum wage. Few people make
below the minimum wage.
While employment capacities across the

Venustiano Carranza community suggest
Commerce related jobs are a key sector,
the table demonstrates a well diversified
employment base which cross over a num-
ber of sectors.
The table below provides a comprehensive
Without With
post instruction
primary average
N ot
19 and under 13,620 8,507 8,835 14,317 45 8 3 7 0 18,723 302

20 - 29 8,365 1,348 2,694 21,057 2 24 41 123 9 50,336 742
30 - 39 12,473 1,074 2,384 17,486 2 50 122 375 13 40,224 632
40 - 49 16,797 707 1,366 9,810 1 58 302 915 19 24,646 518
50 - 59 17,564 440 819 4,918 3 73 297 880 23 10,483 382
60 and over 33,575 609 838 4,572 1 65 260 958 25 7,890 589
T otal 102,394 12,685 16,936 72,160 54 278 1,025 3,258 89 152,302 3,165 33
Market Studies
Xochimilco The Xochi-
milco neigh-
The Xochimilco neighborhood is one of the Northern areas of borhood
Coyoacán, Tlalpan and Iztapalapa. It borders Tláhuac to the is largely
east; Tlalpan to the west ; and Milpa Alta to the southeast. It is a comprised
125.2 sq. km. in size, making it the third largest area of the City of individuals
of Mexico. that make
approxi-
The population of Xochimilco has paralleled the growth of the mately 1-2
City of Mexico throughout the second half of the century. The times that of
population in 2005 was 404,458 with 199,812 men and 204,646 the minimum
women. wage. In
The Xo- addition, a
chimilco large portion of the residents make between 3 -5 times higher
area income levels than a minimum wage benchmark. Few people
includes make below the minimum wage.
diverse
zones There are special buildings in the area like the Convent of San
that Bernardino, a superb 16th Century building. Characterized by
define its simplicity and monumentality, the building has a large atrium,
the profile which is a main feature in traditional religious architecture of
of their Mexico in the time of the viceroyship. Other chapels in the area
territo- are “el Rosario”, “San Cristobal” and “Santa María”. In the center
rial exten- of Xochimilco one can find the Morelos Park and the local mar-
sion. The historical center is the heart of the neighborhood. Here ket. Near there one will find the famous plant and flower Market.
the main commercial, cultural and religious activities are concen- It is a colorful place where peasants of the area sell hundreds of
exotic flowers and it is visited a lot by the inhabit-
ants of the city to acquire vegetation to adorn
their gardens.
While employment capacities across the com-

munity of Xochimilco suggest Commerce related
jobs are a key sector, the table demonstrates a
well diversified employment base which cross
over a number of sectors.
The table below provides a comprehensive detail

of the educational background of the residents
within Xochimilco. Approximately 106,000 resi-
dents have a post secondary education. In total,
85,000 people have a primary/grade school level
of education. In addition, a significant number of
local residents (80,000) maintain a high school or
technical education.
trated. Today, Xochimilco finds itself in a period Without post

With
instruction
of definition and assimilation between its rich

primary average
traditions and the urban challenges that come Secondary Technical or commercial studies with primary finished
with being a part of an urban area like Mexico 1 G rade 2 G rade 3 G rade N ot specified 1 G rade 2 G rade 3 G rade N ot specified
City. 19 and under

20 - 29
15,663
11,760
7,734
1,479
7,690
2,737
12,058
18,487
23
3
10
19
9
22
5
35
1
3
14,576
36,693
354
775
30 - 39 14,032 961 2,024 13,372 1 11 32 96 7 27,942 578
40 - 49 15,032 513 1,102 6,782 3 29 69 271 9 16,587 376
50 - 59 12,343 271 552 3,104 1 22 85 293 8 7,552 290
60 and over 16,654 179 352 1,543 3 17 40 167 9 3,591 443
34 T otal 85,484 11,137 14,457 55,346 34 108 257 867 37 106,941 2,816
6.0 Amway Expansion
Program Summary
Mexico City was delineated into five distinct market areas. Key demographics and market segmentation
analysis were used to determine the market potential of each zone.
Primary SEL Total Income Total Population
A/B 1,070,190,115 563,967
C+ 953,056,848 1,175,678
C- 822,483,300 1,934,823
D+ 662,029,784 3,177,809
D- 175,020,420 1,951,378
E 347,053 13,856
Total 3,683,127,520 8,817,511
Summarized below are the market zones, dominant market segments and potential choice zone(s) for Amway.
Zones and Trade Areas
Market Zone Score Card

To determine the optimal location for a new Amway store, a market zone score card was deployed. The Market
zone score card filters geo-demographic variables with other market traits in order to identify which market
zones are deemed more desirable and likely would present successful opportunities for the longer-term suc-
cess of Amway in the marketplace. There is no one single variable that could determine the ideal market and
site selection. 35
6.0 Amway Expansion
Program Summary
Market Zone Target Segment Market Size Community Growth Tranportation Retail Centers
(population - proximities) (residential, retail)
Centro A/B and C 2,002,226 Mature residential/upscale Full Subway access/bus/taxi Upscale retail
Mercado
North C and D+ 2,398,471 Growth on fringe beyond outer ring Subway access/bus Mercado
Retail centers
South D+ and D- 1,118,357 Growth on fringe beyond outer ring Subway access/bus Large retail focal nodes
Some C Mercado
East D+ and D- 1,795,049 Growth on fringe of city Subway access/bus Mercado
West C with pockets of A/B 1,503,408 Limited growth Subway access/bus Mercado
(fringe of Centro) and D+ Large Retail Shopping Centers
and D- toward outer ring
Creating a score card for each market zone leads to the prioritization of those communities into two distinct buckets:
1. Optimal
2. Not Optimal
Market Zone Sequencing The map below indicates (with Amway logo), those zones/areas
which contain the highest concentration of C residents. The map
Across all five market zones, the above score card reveals that clearly demonstrates that the East zone is largely D+ and D-.
each zone within the Greater Mexico City marketplace possesses
some of the desirable traits. When you take into account the The Centro zone (city core) is where the concentration of A/B
entire picture and not just one or two measures in isolation, the residents are located. In addition, the Centro zone contains a
market zones would be delineated into two groups: very high concentration of C residents which spills into the West,
South and North zones.
Optimal Zones
The West Zone shows a blending of all socio-economic groups
with the more affluent areas bordering the Centro zone. The
A) Centro further out in the west zone toward the outer ring, the socio eco-
B) North nomic levels drop off to the D+ and D- classifications.
C) West
The North Zone contains one concentration of C residents, while
the majority of the zone is dominated by D+ residents.
Not Optimal Zones
The South zone does contain some C level communities which
are concentrated on the periphery of the Centro zone, however,
A) East by large proportion the South Zone is characterized by D+ and
B) South D- residents.
36
6.0 Amway Expansion
Program Summary
37
7.0 Amway Site Specific
Survey
Instructions: For each potential location, the broker is required to complete this survey.
SITE NAME:
ADDRESS:
MAP:
PHOTO(s):
38
Survey
LOCATION
Footprint Location Visibility Site Accessibility Adequate Parking
Free-standing Highway 2-way Yes
Strip Plaza Main Intersection 1-way No
Enclosed Mall Secondary Roads All Bad N/A
City Centre Limited to No Street
Visibility
SITE DESCRIPTION
Site Size
Footprint: Land Parcel:
Build Type
New Build Redevelopment
Current Zoning
Industrial Office Residential
Retail Strip Retail Power Center Traditional Downtown
Options Available
Land Purchase BTS for Lease BTS to Own Building for Lease
Owner Financial Strength

Strong Average Low Financial Difficulty
MARKET ENVIRONMENT
Public Transit Safe Community Desirable Retail
LEASE DETAILS
Term Rental Rate Renewal Options Other
39
Survey
COMMENTS:
40
8.0 NAI Global Network
8.1 Mexico City, Mexico Market Summary
Country Population 108,700,891 (Dec 2007 est.) About the Market

Area (sq km) 1,972,550 sq km
GDP (in US$) $939.3 billion (2008 est.) Mexico City, the capital of Mexico, is
GDP Growth (%) 6% (2008 est.) located in the federal zone (D.F.), in South-
GDP Per Capita (in US$) $8,838 (2008 est.) central Mexico. With 23 million inhabitants,
Inflation (%) 4.2% (2008) Mexico City is often seen as the first stop
Interest Rate (Federal Funds Rate) ¹ (%) for foreign investors in the country. With a
Unemployment (%) 3.7% (2008 est.) growing economy and investment grade
Currency Mexican peso (MXN) rating, Mexico is increasingly viewed as a
Exchange Rate (US$ and date) 1.00 MXN = 0.0927 USD (3/17/08) stable environment for foreign investors.
Exchange Rate (Euro and date) 1.00 MXN = 0.0588 EUR (3/17/08)
Market Name Mexico City The world’s largest city hosts major
Market City Population 17,844,829 (2000 census) employers from various global sectors.
National firms include Grupo Modelo,
Grupo Carso, Telmex, and Pemex. Auto-
motive firms with the largest employment
levels include GM, Ford, and Daimler
Chrysler, while the financial sector is home
to Citibank and BBV Bancomer. Coca
Cola, Pepsi, Honeywell and 3M also
maintain a large presence in the region.
41
8.2 NAI Mexico City, Mexico Office Profile

NAI Mexico (Mexico City)
Blvd. Agua Caliente No. 10611
Centro Corporativo Centura, Suite 706
Tijuana
Baja California
22420
Mexico
www.naimexico.com
Contact: Gary Swedback, NAI Business Director

Phone: + (52) 664 971 0333 / + 1 619 690 3029
Email: swedback@naimexico.com
Markets Serviced: Mexico City
About Us:
NAI Mexico is the largest full service commercial real estate firm in Mexico.
n Available facility/land inventory: Every city in Mexico (including projects not officially on the market)
n Needs assessment/strategic objectives: Plan with client management team
n Phase I Study: Multi-market or single city detail comparison re: labor/utilities/incentives/logistics/ operating
costs/real estate
n Comparative lease analyses: Existing facility vs. build to suit construction
n Land purchase and utilities: Due diligence confirmation
n Lease vs. purchase analysis: Total Cost of Occupancy comparison
n Contract negotiations: Negotiations with landlords/owners
n Web-based project management: 24/7 accountability tools for projects
Staff (#): 15
Key Clients:
Alcatel SAFT Delta Electronics Kyung-in Electronics Thomas & Betts

Allergan Pharmaceutical Eaton Corporation Medtronic UPS - Global Logistics
Bacou - Dalloz El Paso Energy Mecalux York
Bose Corporation Gillette Newell Rubbermaid
Campbell Soup Grainger Otis Elevator Developer Clients:
Carrier Corporation Hughes Network Systems Panasonic Prologis
Conteyor Johnson Controls Samsung Verde Realty
Daimler Chrysler Invensys - Teccor Sanyo GE Capital
42
8.3 Global Contact Info
For more information, contact:

David Berger
Managing Director
Latin America and the Caribbean
NAI Global
1221 Brickell Avenue,
Suite 1100
Miami FL 33131
Phone +1 305 374 4017
Mobile +1 786 556 7785
Email dberger@naiglobal.com
43
9.0 Catchment Areas
9.1 City of Mexico – Catchment Areas

Across Mexico City the five major zones were delineated into much smaller levels of geography in order to iden-
tify those ideal communities which target the C socio- economic residents. On a more micro review of the city,
there are some 2,360 catchment markets that have been assigned a dominance of: A/B, C+, C-, D+, D- and E
levels of socio-economic strata. The majority of the residents in Mexico City are concentrated in the amalgam-
ated grouping of D with 1,154 local markets, followed by the amalgamated group of C with 977 markets. The
following table breaks down by major zone the number of communities/catchment areas by socio-economic
level.
44
9.0 Catchment Areas
9.2 Hot Spot Catchment Areas

To further refine the catchment area search a “hot spot” map was developed over the entire city which high-
lights only those C level catchment zones.
45
9.0 Catchment Areas
9.3 Rank of Catchment Zones by Population

The following table provides the Top 20 C Catchment markets across the city from an original population base
of some 977 C Catchment areas in the city. The top communities are ranked by largest population to smallest.
It is interesting to note that across the Top 20 Catchment Markets 9 C Level Catchments are found in the
Centro Zone, 4 in the West, 3 in the South, 2 in both the East and North.
46
9.0 Catchment Areas
9.4 Zones: Catchment Areas

9.4.1 North Catchments
47
9.0 Catchment Areas
9.4.1 North Catchments
48
9.0 Catchment Areas
9.4.2 Centro Catchments
49
9.0 Catchment Areas
9.4.2 Centro Catchments
50
9.0 Catchment Areas
9.4.3 West Catchments
51
9.0 Catchment Areas
9.4.3 West Catchments
52
9.0 Catchment Areas
9.4.4 East Catchments
53
9.0 Catchment Areas
9.4.4 East Catchments
54
9.0 Catchment Areas
9.4.5 South Catchments
55
9.0 Catchment Areas
9.4.5 South Catchments
56
9.0 Catchment Areas
9.5 Top Target Catchments
9.6 Catchment Summary
Zone # C Catchment Total Population Comment

Markets
North 242 2,398,471 Contains a large number of C Catchment Markets and the high-
est population of any zone, however, the geography is more wide
spread and as such the Cmarkets lack any single cluster.
South 92 1,118,357 This zone contains the lowest population capacity of any zone and
the second fewest C level catchments. However, there exists one
possible catchment cluster in the middle of the zone that may war-
rant consideration.
East 81 1,795,049 The east zone contains the fewest level of C catchments. Most
submarkets are scattered over a very large geographical area and
as such there is no Catchment cluster.
West 213 1,503,408 The West Zone contains both a sizeable population base and a high
concentration of C catchments.
Centro 349 2,002,226 This zone contains one of the highest concentrations of population
and the clear majority of the C Catchments within a relatively small
geographic area.
57
9.0 Catchment Areas
9.7 Catchment Clusters

An alternative method used to determine the optimal location would be to position the Amway facility in close
proximity to multiple C catchments areas in order to maximize the penetration of the marketplace.
While the catchment areas are defined as the place of residence, the cluster catchment approach takes a more
geographical perspective in order to achieve a maximum market exposure to both the daytime population
(where people come to work and shop) as well as the nighttime population where people reside. It is important
to note that in selecting a site within a catchment cluster large retail focal nodes (large malls) should be given
priority as these locations/developments represent local magnets to large concentrations of residents.
The map to the right potential clusters of submarkets each with C catchments. Two groups of clusters are
shown. The green clusters represent those communities that were determined to hold the best potential (high
concentration of C residents, above minimum wage, high population base, close to public transit, concentration
of desirable retail nodes). The purple clusters maintain many of the same attributes found in the green clusters
with one clear exception, both purple clusters tend to be geographically removed from the core concentration
of C people.
Green Clusters - Primary Catchments
1) Colonia Villa de Cortes (District of Coyocan) Centro Zone

2) Colonia Anzures (District of Benito Juarez) Centro/West Zone
3) Colonia Tlacopac (District of Magdalena) Centro/West Zone
Purple Clusters – Secondary Catchments
1) Colonia Lindavista (District of Gustavo A. Madero) North Zone

2) Colonia Bosques de Tetlameya (District of Tlalpan) Centro Zone (Lower area)
58
9.0 Catchment Areas
9.7 Catchment Clusters
59
9.0 Catchment Areas
9.8 Subway Overlay
60
10.0 Conclusions and
Recommendations
Mexico City continues to grow in size as rural resi- characteristics described, a choice location should
dents are increasingly migrating toward the major be more skewed toward concentration of people over
urban centers in search of employment and a better socio-economic level. As mentioned, the socio-eco-
way of life. Mexico City’s socio-economic strata do nomic strata are blended across the entire city and as
show trends of individuals transitioning from lower such no zone holds one particular SEL. The Centro
levels into higher segments. zone is ideal while pockets of opportunity exist in the
North zone and in those communities in the West
Across the City of Mexico neighborhoods of higher zone which are adjacent to Centro. Accordingly, three
economic status are primarily located in the Centro zones have been selected as optimals and do provide
zone of the city. The larger concentrations of C/D levels of C+ and C- residents together with a high
neighborhoods are also located in the Centro Zone overall residential base.
with small additional pockets located in the North
zone. However, it has to be stated that the Greater Optimal Zones:
Mexico market is very complex with socio-economic A) Centro
levels blended in most districts. There is no clear B) North
delineation of A/B segments from C D and E in any C) West
district.
To further filter through the market to identify more
As illustrated in the Distribution Optimization Section, micro-markets, the city was divided into some 2,356
the Mexico City socio-economic levels are displayed catchment markets that have been assigned a domi-
in rings. The inner core of the city (Centro zone) of- nance of: A/B, C+, C-, D+, D- and E levels of Socio-
fers the most affluent ring A/B. Pulling away from the Economic Strata. The majority of the residents in Mex-
core the socio-economic lifestyles tend to go down in ico are concentrated in the amalgamated grouping of
sequence: C+, C- , D+ and finally D- residents tend to D with 1,156 local markets, followed by the amalgam-
dominate the outer most ring. In terms of E commu- ated group of C with 967 markets. It is interesting to
nities, they are scattered across the city and form no note that across the top 20 Catchment Markets ,9 C
real concentration and/or market. Level Catchments are found in the Centro Zone.
While the zones have been delineated and the market The top 10 catchment zones are:
61
10.0 Conclusions and
Recommendations
While the above ranking shows those communities with the It is important to note that in selecting a site within a catchment
highest number of C residents, those catchment areas are not cluster, large retail focal nodes (large malls) should be given prior-
necessarily well positioned in the city to obtain a greater market ity as these locations/developments represent local magnets to
draw beyond the immediate catchment. Accordingly, a catch- large concentrations of residents.
ment cluster methodology was deployed that targeted C
concentrated catchments that, while not necessarily in the top 10 A four step market filter was deployed in order to determine the
in terms of total population, are centrally and strategically optional catchment areas for a possible Amway location.
better positioned to draw from a much larger population base.
The catchment clusters were identified based on the following Step 1: The greater Mexico City area was broken down into five
criteria: large market zones.
1) Close proximity to public transit (bus and/or subway). Step 2: The five zones were then subdivided into 2,356 small
2) Located at or near a significant retail focal node. market areas.
3) Concentration of C level residents.
4) Centrally located in close proximity to a number of Step 3: The 2,356 sub-markets were then filtered down to
surrounding C level communities. identify only those catchment areas that were
predominately C level (C+ and C-) residents. As a result
Within any city the daytime and nighttime population dynamics some 967 communities were identified as potential
vary. The Mexico City core (Centro) provides a natural draw for markets of opportunity.
daytime (work) and night-time (play). Given the size of the city,
there is not one single natural hub that results in a higher concen- Step 4: Across those 967 catchment areas a combination of
tration of people in the daytime or nighttime; however, the Centro population and income was filtered in order to rank order
area is by far the biggest draw of people in the City. Accordingly, those C communities.
by deploying the catchment cluster approach (which plays to
both the daytime and night-time dynamic) two strong catchment Given the magnitude of the city the following Catchment Clusters
areas should be investigated for a possible location. are recommended for site selection consideration by the Amway
and the local NAI Mexico office brokers:
To further assist in the priority sequence of investigating desirable
markets, catchment clusters were divided into two groups, with Green Clusters - Primary Catchments
Green being the obvious prime clusters.
1) Colonia Villa de Cortes (District of Coyocan) Centro
Green Clusters - Primary Catchments 2) Colonia Anzures (District of Benito Juarez) Centro/West
1) Centro Zone 3) Colonia Tlacopac (District of Magdalena) Centro/West
2) Centro/West Zone
1) North Zone 1) Colonia Lindavista (District of Gustavo A. Madero) North
2) Centro Zone (Lower area) 2) Colonia Bosques de Tetlameya (District of Tlalpan) Centro
The green clusters represent those communities that were Hub and Spoke Scenario:
determined to hold the best potential (high concentration of C
residents, above of desirable retail nodes). The purple clusters Given the magnitude and complexity of the city, Amway may wish
maintain many of the same attributes found in the green clusters to deploy a “hub and spoke” strategy in order to obtain maximum
with one clear exception; both purple clusters tend to be geo- market penetration. For example, the main location could be
graphically removed from the core concentration of C population. secured in one of the three optimal zones and satellite or smaller
venues be established in the other zones. Deploying such a
As indicated in both the General Market Overview and the Catch- strategy would result in increased capital costs and operational
ment Areas section the subway system in Mexico City is quite challenges.
extensive with some 175 stations distributed throughout the city.
The inset map in the Catchment Section indicates that most This approach could be executed on a phased-in strategy. The
Mexico City residents, regardless of their socio-economic level, main location would open in the fall of 2008 and in 2009 (subject
have access to the subway. The subway system is viewed as an to strong sales volumes) establish one or two smaller units further
affordable and safe mode of transportation. The city is also out from the center in order to extend the market reach.
supported by an extensive bus system and private taxi network.
62
Mexico City, Mexico
SITE SELECTION
Amway Site Specific
Survey
Instructions: For each potential location, the broker is required to complete this survey.
SITE NAME:
ADDRESS:
MAP:
PHOTO(s):
64
Amway Site Specific
Survey
LOCATION
Footprint Location Visibility Site Accessibility Adequate Parking
Free-standing Highway 2-way Yes
Strip Plaza Main Intersection 1-way No
Enclosed Mall Secondary Roads All Bad N/A
City Centre Limited to No Street
Visibility
SITE DESCRIPTION
Site Size
Footprint: Land Parcel:
Build Type
New Build Redevelopment
Current Zoning
Industrial Office Residential
Retail Strip Retail Power Center Traditional Downtown
Options Available
Land Purchase BTS for Lease BTS to Own Building for Lease
Owner Financial Strength

Strong Average Low Financial Difficulty
MARKET ENVIRONMENT
Public Transit Safe Community Desirable Retail
LEASE DETAILS
Term Rental Rate Renewal Options Other
65
Amway Site Specific
Survey
COMMENTS:
66
Amway Site Specific
Survey
67
Amway Site Specific
Survey
68
Amway Site Specific
Survey
69
Amway Site Specific
Survey
70
Amway Site Specific
Survey
71
Mexico City, Mexico
Supporting
Geo-Demographic
Maps
72
Supporting Geo-Demographic
Maps
73
Maps
74
Maps
75
Maps
76
Maps
77
Maps
78
Maps
79

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Mexico City, Mexico

1.0 Project Background .................................................................................................................................. 3

2.0 Project Objectives ..................................................................................................................................... 4

3.0 Mexico City, Mexico ................................................................................................................................ 5

4.0 Amway Store Distribution Optimization ....................................................................................................15

4.1 Market Zones/Trade Area Delineation ................................................................................... 15

5.0 Mexico City Zone Market Studies ..........................................................................................................17

6.1 Geo-Demographic Snap-Shot ............................................................................................. 35

8.0 NAI Global Network .............................................................................................................................. 41

8.1 Mexico City, Mexico Market Survey ..................................................................................... 41

9.0 Catchment Areas .................................................................................................................................. 44

9.1 City of Mexico – Catchment Areas ....................................................................................... 44

10.0 Conclusions and Recommendations ..................................................................................................... 61

Appendix A: Site Survey ................................................................................................................................ 63

1. Comprehensive market analysis and analytics to establish optimal trade areas.

1. Complete the market assessment.

The results and conclusions are included in this document.

3.1 Market Overview –

The neighborhoods, or colonias, of Centro

3.2 Mexico City Economic GDP - per capita (PPP):

Current economic activities have not pre- Labor force - by occupation:

Real growth rate:

Number of Inhabitants per Size of Locality

3.3 Population Composition

3.4 Geographic Delineation

3.5 Mexico City: Delineation of Geography

3.6 Geo-Demographic Market Segmentation

Country Socio-Economic Level Categories

Level A Level B Level C Level D Level E

Families at this level for 3 or

The bar chart to the left displays the socio-economic composi-

The stabilization of the banking sector has evolved to the stage

Inner-city rental slums rental slums (vecin-

Ciudades perdidas: This is a broad con-

Cuartos de azotea: These are servants’

Deteriorated public housing projects: Many

The vast majority of the precarious settle-

3.7 Mexico City Retail Inventory ous, one-of-a-kind,

theater, an international exhibition center, hotels and

The number of passengers, trips per person, type and

The main reason to travel is to move from home to

4.2 Geo-Demographic Summary Primary SEL Total Income Total Population

Alvaro Obregon area has increased from a density of 4,874 hab/km2

1 G rade 2 G rade 3 G rade N ot specified 1 G rade 2 G rade 3 G rade N ot specified

19 and under 8,715 4,478 4,810 7,397 42 4 2 3 0 14,633 140

is 33.3 sq. km. The population density per sq. km. is

23% of the working population earns over 5 times

Over 1/3 of the working population is em-

21.59% of the population over the age of 12

Population - 12 years and more - schooling - Distribution according to instruction level

Secondary Technical or commercial studies with primary finished

materials. Of the homes which are constructed with

The Benito Juárez neighborhood has a 98.9%

Benito Juarez is classified as a very af-

The average number of residents per

1 G rade 2 G rade 3 G rade N ot specified 1 G rade 2 G rade 3 G rade N ot specified

19 and under 8,715 4,478 4,810 7,397 42 4 2 3 0 14,633 140

combination of a large population and small size ac-

The table below provides a comprehen-

1 G rade 2 G rade 3 G rade N ot specified 1 G rade 2 G rade 3 G rade N ot specified

19 and under 19,666 10,715 11,012 17,202 46 16 9 9 0 27,975 515

Commerce, Manufacturing and Construction also

The table below provides a comprehensive detail of