Telcel leads the ranking, followed by Corona, Telmex, Oxxo, and Bimbo
Interbrand is excited to launch the Best Mexican Brands 2014 report. Led by Telecom giant, Telcel— followed by Corona, Telmex, Oxxo, and Bimbo—the ranking presents a cross-section of the most successful brands in all sectors, including retail, beverages, food, and financial services.
The value of all 25 Mexican brands exceeds USD $32,000 million, which demonstrates the growing influence of these companies in their markets. Notably, the combined value of these top Mexican brands has grown almost 90 percent during the past 5 years.
By comparison, the total value of the top 25 Mexican brands is equivalent to 80 percent of the value of Brazil’s top 25 brands (USD $40,000 million), 58 percent of the best Spanish brands (USD $55,000M), 51 percent of India’s leading brands (USD $63,000M), 46 percent of Canada’s (USD 70,000M), and 28 percent of Japan’s (USD $115,000M). While a gap in total value remains between Mexican brands and leading brands elsewhere,, the impressive growth of brands such as Bimbo, Corona, Cemex, and Mexichem has reduced this gap significantly.
Key sector takeaways from the report:
The telecom sector leads the ranking, representing 29 percent of the total value. Two brands from this sector appear in the ranking, with Telcel at #1 and Telmex at #3.
Despite the success Telcel and Telmex currently enjoy, the next few years may prove to be challenging for brands in this sector given a) recent political reforms, b) the need for telecom companies to increase investment in infrastructure, c) technological advancements, and d) the need to become more client-focused.
Speaking to the enduring success of Mexico’s alcohol brands, the beverages sector is the second best-represented one in the ranking, comprising 21 percent of the total value. Familiar brands that lead in this space include Corona (#2), Modelo Especial (#6), and El Jimador (#19).
With Mexico being the largest beer exporter and the sixth largest producer in the world, the country’s beer subsector is, without a doubt, globally relevant and highly successful. Grupo Modelo (part of AB InBev) and Cuauhtémoc Moctezuma (part of Heineken Group) dominate the sector, with each holding owning 57 percent and 41 percent market share respectively.
Tequila—best represented by the top-selling brand, El Jimador, in the ranking—is the quintessential Mexican alcoholic beverage. The tequila market has been growing steadily for the past 40 years, and the subsector boasts over 119 tequila producers and more than 2,000 brands. And its popularity is not just domestic— tequila is also seeing unprecedented growth in international markets.
The financial sector comprises 15 percent of the list, and includes brands such as Banorte (#7), Banamex (#8), Inbursa (#11), and Compartamos Banco (#14). It’s important to mention that the market leader, BBVA Bancomer, was not included in the ranking on account of methodology constraints. So far, it has not been possible to attribute a financial value to the Mexican part of the brand (i.e., Bancomer) since it was acquired by the Spanish multinational BBVA (Banco Bilbao Vizcaya Argentaria).
While confidence in financial institutions has waned in many parts of the world, in Mexico, confidence has increased considerably in the past five years.
This is partly due to an increased emphasis on customer service, exemplified by institutions such as Compartamos Banco. While brands in many markets are working to get closer to their customers, in Mexico, consumers are increasingly showing a preference for financial institutions that 1) appear to share their values and 2) seem to be motivated to help clients improve their financial situation, rather than solely motivated by the prospect of financial gain.
Other notable trends are the growth of niche banks (e.g., ones that are. focused on specific demographics, regional or local segments, etc.), and the growth of banks that demonstrate innovative approaches to customer service, project an approachable image, and emphasize friendly communication.
The full ranking:
Note: To qualify for the Best Mexican Brands ranking, brands must be of Mexican origin, must be on the stock market (so that Interbrand can access publically available financial information), and must show a positive operating profit after taxes and cost of capital.
Pablo Romo is a Client Services Manager at Interbrand Mexico.