INSTITUTO TECNOLÓGICO Y DE ESTUDIOS SUPERIORES

DE MONTERREY

International Competitiveness and Business Opportunities

Erick Sanchez López

Session 4: Porter’s Diamond

Team 7

Members

Nathalia de la Garza Sosa A01198609

Gabriela Mercadal Muñoz A00832783

Marian Valeria Callejas Angeles A01709326

José Miguel Pepi Gonzalez A01383494

September 29th 2002

 Porter’s Diamond to the footwear in Mexico

Basic Elements
- Factor conditions
- The shoe industry is one of the oldest in Mexico.
- Until 1941, 47.37% of the working population of Guanajuato was
employed in this activity, and up to 1,315 establishments were
engaged in its production (Cosmos, 2022).
- Investment in training, both in technical knowledge and soft skills, is
still very incipient. There is a high labor turnover.

- Demand conditions
- In 2020 the Mexican production of footwear was 165 million shoes.
- 90% of the footwear produced was distributed inside Mexico, on
average, a Mexican consumes 2.6 pairs of shoes per year (ICEX,
2020).
- The most popular footwear produced in Mexico are: footwear with
leather and leather uppers, fabric footwear, plastic footwear
(ICEX, 2020)

- Strategy, structure and rivalry

- In Mexico the shoe industry has several competitors, and the leather
footwear industry is highly competitive.
- The footwear production is mainly concentrated in three states;
Guanajuato, Jalisco, and Mexico City 's metropolitan area. (ICEX,
2020)
- The three crucial enterprises are Fábricas de Calzado Andrea SA de
CV, Flexi SA de CV, and Price Shoes SA de CV. Together they sum
the 20% of shoe production in Mexico. (ICEX España Exportaciones e
Inversiones, 2020)

- Related and supporting industries

- Textile industry is related and a supporting industry of the footwear
industry because it is responsible for making shoelaces and the insides.
The segment Textile & Other Footwear accounted for 37% of the
Footwear revenue in 2021. The worldwide revenue of US$147 billion
in 2021 is expected to increase to US$243 billion by 2025. Footwear is
the second most important fashion segment within the retail business
just behind apparel. Key companies are Nike, Adidas, Puma and New
Balance. This report from the series of segment reports gives an
overview of the Textile & Other Footwear market from an
international perspective. (Statista, 2021)
 - The Leather industry is responsible for making most of the shoe parts
in this case because our company is focused on leather footwear.
Leather Footwear is the segment with the highest sales in Central &
Western Europe. With regard to growth, however, it is not as strong
as the Athletic Footwear and Sneakers segments. Just like the market
for Apparel, the Footwear market is currently shaped by a tremendous
change in customers’ purchasing habits. The rise of eCommerce and
new store concepts created by major sportswear manufacturers exert
substantial pressure on stationary retail stores. This report from the
series of segment reports gives an overview of the Leather Footwear
market from an international perspective. (Statista, 2021)

- The Plastic Industry is responsible for making the sole for any kind of
shoe. In 2021, the United States exported approximately 174.5 million
U.S. dollars worth of plastic and rubber footwear to the rest of the
world. In comparison, U.S. plastic and rubber footwear exports were
valued at around 414 million U.S. dollars in 2019. (Statista, 2019)

● Additional elements:
- Government
- In Mexico there is the "Cámara de la Industria del Calzado del Estado
de Guanajuato" whose objective is to identify and satisfy the needs of
the footwear industry. (CICEG, 2022)
- Alejandro Gómez Tamez executive president of CICEG says that all
the support received for the footwear industry is provided by the state
of Guanajuato, the Federal Government has not helped the private
industry and only puts barriers in political decisions. (Serma.net, 2022)
- CICED has created a program to increase the exportable offer. They
have a COEX program -Export Competitiveness- that certifies
industries with export capacity. For those companies that do not
have the necessary score, the CICEG Chamber gives them training
and advice, to obtain the points that allow them to access areas of
opportunity. (Serma.net, 2022)
- In 2014, the federal government issued a decree establishing measures
to provide the footwear industry with greater benefits and to establish
conditions that allow the industry to compete in a fair and balanced
market. (DOF, 2014)
- Permissions:
- Authorization to use the name or company name.
- Request for the electronic mercantile folio.
- Articles of incorporation of the meeting of the commercial
company.
 - Registration in the Federal Taxpayer Registry (RFC
and e.signature)
- Trade mark.
- Employer registration with the IMSS.

- Chance
- Casual footwear is set to see faster recovery than formal footwear,
because consumers will see some permanent changes to their lifestyles
due to COVID-19. This will lead to less demand for formal footwear
for the office. (Passport, 2022)
- Amid rising demand for more casual styles, casual and sports footwear
brands are likely to launch limited editions as a marketing and sales
strategy in the forecast period. (Passport, 2022)
- New launches are expected to be more sustainable offers, in line with
the trend by apparel and footwear players to be seen as more
responsible, particularly linked to environmental concerns. (Passport,
2022)
- E-commerce will continue to grow in importance as a distribution
channel for footwear during the forecast period. (Passport, 2022)

Conclusions

Nathalia de la Garza
From the analysis of the porter diamond previously carried out, it can be concluded
that the footwear industry is highly important in Mexico since it is one of the oldest
industries. They state in Mexico where the production of footwear is mainly
concentrated is in Guanajuato and followed by Jalisco and Mexico City. It is
considered very competitive since in 2020, 165 million shoes where produced in the
country, in addition to the fact that there are 3 crucial companies that represent 20%
of the shoe production in Mexico and there are also other brands that offer the same
products and are Mexican companies. In addition to the fact that they are currently
seeking to work so that companies can easily export their products to other parts of
the world and they are given training to more easily obtain the points required to
export.

Gabriela Mercadal
After analyzing the porter’s diamond we were able to identify the importance of the
footwear industry in Mexico. We learned about the industry and the competition
between the companies that integrate them. Also, we could identify that the footwear
industry is so important in Mexico because of how it helps their economy and
development. In Mexico, the states with the largest production rate are Guanajuato,
Jalisco, and Mexico City. After this analysis we were able to gain knowledge on the
industry, their strategies, the importance, and the way it works.
 Marian Valeria Callejas Angeles
With the Porter's Diamond we were able to identify how the country is positioned in
the footwear industry. We were able to determine important data among which stand
out that; Guanajuato is the state that has more shoe production in Mexico; the amount
of pairs of shoes in 2020 was around 165 million; the footwear industry in Mexico has
many competitors, especially in leather shoes; we found some industries that help the
footwear industry such as leather, textile and plastic; the state government of
Guanajuato has the CICED that helps to bring opportunities within this industry; and
there are new opportunities and trends to the footwear industry. Mexico is a great
country for the production of footwear, it is a strong industry that has important
companies that commercialize this type of footwear, it is a great competitor at an
international level, however I consider that there is a lack of support from the
government to increase the potential of this industry even more.

José Miguel Pepi

After doing some research and with the porter's diamond we were able to identify the
industries that support and are related to ours (Footwear) also we were able to learn
about the different industries and their impact on footwear. Also we can conclude that
the Footwear industry is very important to our society because it contributes to the
global economy and also has a global impact on fashion and trends.

References

CICEG. (n.d.). CICEG / Conócenos. Ciceg.Org. Retrieved September 29, 2022, from

https://www.ciceg.org/mision.html

Serma.net. (2022, April 5). Mexico: the footwear industry consolidates its recovery -

SERMA.NET. Serma.Net.

https://serma.net/news/reports/mexico/mexico-the-footwear-industry-consolid

ates-its-recovery

Statista. (s. f.). Footwear - Mexico. Recuperado 29 de septiembre de 2022, de

https://www.statista.com/outlook/cmo/footwear/mexico

Diario Oficial de la Federación . (2014, August 28). DECRETO por el que se

establecen medidas para la productividad, competitividad y combate de

prácticas de subvaluación del sector calzado. Diario Oficial de La Federación.

 https://www.dof.gob.mx/nota_detalle.php?codigo=5358209&fecha=29/08/201

4#gsc.tab=0

Presentation FootwearIndustry_MX.pdf

https://experiencia21.tec.mx/courses/300368/files/115082194?module_item_i

d=19626199

Euromonitor International. (2022). Apparel and footwear in Mexico. Passport, 76–77.

Jocelyn, V., & Biagi, L. (n.d.). Textile & Other Footwear Report 2022.

Statista. Retrieved October 3, 2022, from

https://www.statista.com/study/48864/textile-and-other-footwear-report/

Jocelyn, V., & Biagi, L. (n.d.). Leather footwear report 2022. Statista.

Retrieved October 3, 2022, from

https://www.statista.com/study/48862/leather-footwear-report/

Smith, P. (2022, September 23). Rubber and plastic footwear: Export value U.S. 2021.

Statista. Retrieved October 3, 2022, from

https://www.statista.com/statistics/1035717/rubber-and-plastic-footwear-expor

t-value-us/