THE BUSINESS LANDSCAPE BETWEEN MEXICO AND FRANCE

France and Mexico have maintained a solid commercial relationship that has been constantly growing in recent decades. Strengthening the ties between both countries has brought new business opportunities, allowing several Mexican companies to establish themselves successfully in the French market, while French companies have also successfully entered the Mexican market.

This growth has been evident in recent years. In 2021, Mexico was the Latin American country with the highest investment in France, with more than 10 projects creating over 135 new jobs. On the other hand, France has also invested in Mexico, with over 550 companies operating across the country’s 32 states, making France the sixth-largest European investor and the ninth-largest worldwide investor in Mexico. The exchange of technology and knowledge has enriched both countries. (Economic Relations Mexico-France, n.d.)

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Which Mexican Companies Operate in France?

Despite the presence of numerous Mexican companies in France, the three most notable are Alsea, Cemex, and Sigma. These well-known and leading companies in Mexico have managed to overcome cultural barriers and establish themselves successfully in the French market.

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Which French Companies Operate in Mexico?

Among the many French companies that have brought their operations and services to Mexico, the most notable are L'Oréal, Danone, Axa, Valeo, and Schneider Electric. These companies have not only entered the Mexican market but have also gained significant popularity among consumers. One example is L'Oréal, which has established itself as the number one beauty company in Mexico, while Axa is one of the five largest insurance providers in the country.

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How to Do Business?

→ To conduct business with French entrepreneurs, it is important to be familiar with topics related to culture, such as art, history, and gastronomy. French culture has made significant contributions to these areas, and its citizens take pride in discussing them in conversations.

→ When greeting, a traditional Western handshake is expected. However, if greeting a woman, she is expected to extend her hand first. While the famous "les bises" (air kisses) are common in French social settings, they are reserved for friends and colleagues, so it is best to maintain professionalism with a handshake.

→ When addressing someone you do not know, it is appropriate to use “Monsieur,” “Madame,” or “Mademoiselle” followed by their last name. First names should not be used, and formal speech with direct eye contact is expected.

→ Unlike other cultures where English is commonly used in business, the French prefer to speak their native language. If you do not speak French, it is advisable to apologize and seek the help of an interpreter rather than defaulting to English.

→ Business contracts do not typically include Anglo-Saxon terminology, so it is important to study the French business vocabulary before closing deals or signing documents.

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What Does Mexico Export to France?

According to data from the Observatory of Economic Complexity (OEC), in 2023, France exported $3.8 billion worth of goods to Mexico. The main products exported from France to Mexico were: Gas turbines ($384M), Packaged medicines ($287M), Aircraft, helicopters, and spacecraft ($219M).

A study by Statista Research AI confirms that one of Mexico’s main exports to France is pharmaceutical products, which reached a value of $93.8 million in 2023. Other statistics provide insights into the overall trade volume between France and Mexico, valued at €23.628 billion.

What Does Mexico Import from France?

The main products exported from Mexico to France in 2023 were: Gas turbines ($212M), Medical instruments ($180M), Vaccines, blood, antisera, toxins, and cultures ($92.1M). Source: "Trade Between France (FRA) and Mexico (MEX), n.d."

Interesting Facts About France

Goodbye to Self-Checkout Machines: A Major Flaw Disrupts the Supermarket Revolution

With the rise of technology to streamline everyday processes, self-checkout machines have become commonplace in most supermarkets. According to NielsenIQ data in 2023, 71% of stores in France (around 3,400 stores) had self-checkout machines. However, only 10-12% of customers used them, and transactions via these machines accounted for just 2% of total payments. The data suggests high theft rates in France, as the new payment systems have made shoplifting easier. As a result, local supermarkets are reverting to traditional payment methods to reduce losses, while others are increasing their use of AI technology to combat theft.

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France and Mexico have remained strong trade partners despite challenges such as language barriers and cultural differences. France has been a key contributor to Mexico’s economy, particularly in critical sectors like medicine, through pharmaceutical products and gas turbines. Meanwhile, Mexico has made significant contributions through pharmaceutical exports and various other goods. Although language and terminology challenges pose obstacles to trade between both countries, companies such as Axa, L'Oréal, and Danone (French companies in Mexico) and Sigma, Cemex, and Alsea (Mexican companies in France) have successfully expanded internationally. This demonstrates that businesses can venture into foreign markets and thrive.