By David Morse and Warren Thayer
It's been ten years since NAFTA went into effect. At that time, Ross Perot was talking about the "great sucking sound" of losing jobs to Mexico while Mexicans worried about their economy being inundated by U.S. multinationals.
Few of us were speaking about U.S. Latinos at the time, at least not as part of the NAFTA debate. But there are now 40 million of them, two thirds of whom are Mexican. According to an article appearing on brandchannel.com, the opportunity that these 40 million represent is not lost on companies on the south side of the Rio Grande -- the same companies that make the brands many of these consumers grew up with.
It used to be that Mexicans would always choose an American brand over a Mexican brand. There's a Mexican word for it - "Malinchista" - named for the Aztec woman, known as "La Malinche", who helped the Spaniards during the conquest.
But to Mexicans living in the United States, Mexican brands, particularly of the edible or drinkable variety, offer nostalgia.
Novamex is a company whose entire focus is on importing Mexican brands into the United States and marketing them to Mexican consumers. Sales of one of its iconic brands, Jarritos, have actually outpaced sales in Mexico.
According to Novamex's Director of Marketing, Bob Leppan, it's all about offering an authentic experience. "Mexicans in the U.S. crave the flavors, the tastes, the culture of Mexico. They welcome U.S. culture, but they love and miss Mexican culture as well. We enable them to have the best of both worlds."
Moderators' Comments: How successful will Mexican manufacturers be in attacking the U.S. market with brands familiar to Mexicans now living here? Would they do well to form an alliance with a retailer or manufacturer? Or would they be best off, over the long haul, to remain independent? Can they do it alone?
As Mexican companies become more aggressive in targeting Mexicans in the U.S., you have to wonder whether there will be room for some interesting new alliances. Mexican brands - with U.S. manufacturers, or with U.S. retailers?
Surely the Mexican companies could provide extraordinarily good guidance to U.S. manufacturers who are stumbling in their efforts to attract the huge and growing number of Mexicans in this country. They could also, perhaps, ink some lucrative deals for exclusive distribution with major retailers such as Wal-Mart, Kroger or Albertsons, to name a few. - David Morse - Moderator ; Warren Thayer - Moderator