4 ms·

Sad thing is that unlike China, Mexico did not and maybe also will not have local IP, brand and/or tech moats. People were laughing over Chinese auto, electroni

by eunos 4y ago

Sad thing is that unlike China, Mexico did not and maybe also will not have local IP, brand and/or tech moats. People were laughing over Chinese auto, electronics and shanzhai products a decade ago. Yet today they have CATL, BYD, Huawei among others.

frozenport 4y ago
Still laughing
uni_rule 4y ago
By that logic their brands developing their own cache would be inevitable if they followed the same path, even if it is an uphill battle.
- eunos 4y ago
  Mexico already hooked to US manufacture since NAFTA which is even older than Chinese membership in WTO. Still havent show satisfactory results.
  - alephnerd 4y ago
    Because Wages. Median household disposable income in Mexico is around $9800 [0] Median household disposable income in China is around $5,000 [1] In reality, in Prefectures like Guangzhou, Shanghai, Beijing, and Tianjin you are seeing median household disposable incomes that are comparable to Mexico [2], hence why high value manufacturing is returning to MX, because Chinese high value manufacturers can't compete within the US with MX when factoring shipping costs. Within Asia, Chinese high value manufacturing is still competitive, but is returning to Thailand and Malaysia for the same reason (all those consumer electronics factories in Guangzhou were started and managed by Malaysian Chinese in the 80s) [0] - https://www.inegi.org.mx/temas/ingresoshog/ https://www.inegi.org.mx/temas/ingresoshog/ [1] - http://www.stats.gov.cn/english/PressRelease/202201/t20220118_1826649.html http://www.stats.gov.cn/english/PressRelease/202201/t2022011... [2] - http://www.stats.gov.cn/english/PressRelease/202202/t20220227_1827963.html http://www.stats.gov.cn/english/PressRelease/202202/t2022022...
alephnerd 4y ago
Depends on the industry. MX companies don't innovate much in the Telecom and Consumer Electronics space (too difficult to compete with the US next door and China due to pricepoint and information transfer from Taiwan/SK/MY/JP to CN) but a lot of R&D in the Medical Electronics, AgTech, Energy, and Automotive industries is done within Mexico itself, though regulations make it so it's more efficient to do so while being a subsidiary of a foreign company instead. Also, I've never heard of BYD or CATL til you mentioned em, but I don't follow the EV market (battery tech notwithstanding) nor do I really care, but it does show that there is still some work to be done in brand perception if a normie like me hasn't heard about it.

by eunos 4y ago

frozenport 4y ago

Still laughing

uni_rule 4y ago

By that logic their brands developing their own cache would be inevitable if they followed the same path, even if it is an uphill battle.

eunos 4y ago
Mexico already hooked to US manufacture since NAFTA which is even older than Chinese membership in WTO. Still havent show satisfactory results.
- alephnerd 4y ago
  Because Wages. Median household disposable income in Mexico is around $9800 [0] Median household disposable income in China is around $5,000 [1] In reality, in Prefectures like Guangzhou, Shanghai, Beijing, and Tianjin you are seeing median household disposable incomes that are comparable to Mexico [2], hence why high value manufacturing is returning to MX, because Chinese high value manufacturers can't compete within the US with MX when factoring shipping costs. Within Asia, Chinese high value manufacturing is still competitive, but is returning to Thailand and Malaysia for the same reason (all those consumer electronics factories in Guangzhou were started and managed by Malaysian Chinese in the 80s) [0] - https://www.inegi.org.mx/temas/ingresoshog/ https://www.inegi.org.mx/temas/ingresoshog/ [1] - http://www.stats.gov.cn/english/PressRelease/202201/t20220118_1826649.html http://www.stats.gov.cn/english/PressRelease/202201/t2022011... [2] - http://www.stats.gov.cn/english/PressRelease/202202/t20220227_1827963.html http://www.stats.gov.cn/english/PressRelease/202202/t2022022...

alephnerd 4y ago

Depends on the industry. MX companies don't innovate much in the Telecom and Consumer Electronics space (too difficult to compete with the US next door and China due to pricepoint and information transfer from Taiwan/SK/MY/JP to CN) but a lot of R&D in the Medical Electronics, AgTech, Energy, and Automotive industries is done within Mexico itself, though regulations make it so it's more efficient to do so while being a subsidiary of a foreign company instead. Also, I've never heard of BYD or CATL til you mentioned em, but I don't follow the EV market (battery tech notwithstanding) nor do I really care, but it does show that there is still some work to be done in brand perception if a normie like me hasn't heard about it.