Mexican TexTile inDUSTRY Strutting Down ... - ProMéxico

Mexican shoe industry Fashion Marries Technology Underfoot
Mexican
Textile
INDUSTRY
Strutting Down
International
Runways
VII - 2011

Campeche
A state of
invaluable
richness and
hard-working
people
• Strategically located in Southeast Mexico
for international trade: 4,488.68 km of roads,
385 km of railroads, two sea ports and two
international airports.
• It is the first producer of palay rice and honey,
the largest producer of rock aggregate and
crude oil in the country.
• It has a wide range of exportable grains, fruits
and vegetables such as corn, watermelon,
papaya and habanero peppers.
• The Calakmul Biosphere –the second most
important reserve in America and Mexico’s
largest tropical rainforest– is located in
Campeche.
Campeche: the greatest place
for business opportunities!
Trade and Industrial Development
Secretary, Campeche
+52 (981) 816 0043
http://sedicocamp.comoj.com

2 Negocios
Contents
30
Cover feature
Mexican textiles
Strutting down
international runways
Photo courtesy Of grupo industiral miro
From the CEO 6
Briefs 8
Special Report Campeche: great business opportunities 10
Business Tips competitiveness in mexico 12
Guest Opinion competitiveness, an attitude 16
Special Feature
Mexican shoe industry:
Fashion marries technology underfoot 18
Mexico’s Partner botas jaca 24
dione 26
gösh 28
grupo kaltex 35
santiago Textil 38
Compañía mexicana de trajes 40
siete leguas 42
Compañía industrial de parras 44
grupo industrial miro 46
Figures tourism: a strategic sector 48

4 Negocios
ProMéxico
Carlos Guzmán Bofill
ceo
Ilse Oehler Grediaga
Image and Communications Director
Sebastián Escalante
Managing Coordinator
sebastian.escalante@promexico.gob.mx
Miguel Ángel Samayoa
Advertising and Suscriptions
negocios@promexico.gob.mx
Natalia Herrero
Copy Editing
54
mexico
World’s
Heritage
The lifestyle Contents
68
the guelaguetza
Expression of Mexican Essence
50 Destination
Mexico As a second home
66 Fashion
Carla fernández:
Mexican fab goes creative
70 Architecture
Revitalizing Mexican cities
Photo carlos citalán Photo Archive
q-10 comunicación
Emma Lucila López Valtierra
Publisher
Sergio Anaya
Editor in Chief
Carlos Molina
Design
This is an editorial project for ProMéxico
by Q-10 Comunicación.
Download the PDF version
and read the interactive edition
of Negocios ProMéxico at:
negocios.promexico.gob.mx
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Ilustradas de la Secretaría de Gobernación.
ISSN: 2007-1795.
Negocios ProMéxico año 4, número VII, julio
2011, se terminó de imprimir el 18 de julio de
2011, con un tiraje de 12,000 ejemplares. Impresa
por Cía. Impresora El Universal, S.A. de
C.V. Las opiniones expresadas por los autores
no reflejan necesariamente la postura del
editor de la publicación. Queda estrictamente
prohibida la reproducción total o parcial
de los contenidos e imágenes de la publicación,
sin previa autorización de ProMéxico.
ProMéxico is not responsible for inaccurate
information or omissions that might exist in
the information provided by the participant
companies nor of their economic solvency.
The institution might or might not agree
with an author’s statements; therefore the
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not on the institution, except when it states
otherwise. Although this magazine verifies
all the information printed on its pages, it will
not accept responsibility derived from any
omissions, inaccuracies or mistakes. July 2011.

From the CEO.
Mexico’s business environment is one of the most promising
in the world. Behind this success, there are multiple public
and private efforts, as well as strategies that have helped
improve the country’s competitiveness and generate optimal
conditions to attract more productive investment.
Competition is becoming more intense and difficult. Cost reduction
is no longer enough and innovation is becoming necessary, given that it
adds value to both products and services in order to boost their presence
in key markets. Innovation is an increasingly widespread process, and
the textile and footwear sectors are prime examples of that. Nowadays,
Mexico offers unique and extraordinary design.
Thanks to innovation, many Mexican textile and footwear companies
have succeeded in reversing the difficult conditions they once faced due
to low cost competition. Far from trying to compete in terms of volume,
the Mexican industry understood that specialization was the way to go
in order to meet market needs that high-volume producers were unable
to satisfy.
Today, the textile and footwear sectors in Mexico have won ground
in international markets by forging a path of new proposals based on
design, quality, response time and the ability to adapt and satisfy special
needs and demands.
This issue of Negocios highlights several Mexican companies, as well
as the strategy followed by the textile and shoe industries, offering insights
into why Mexico’s growth expectations in these sectors are significantly
improving.
Welcome to Negocios!
Carlos Guzmán
CEO
ProMéxico

ENERGY
Energetic
Alliance
OFFICES ABROAD
North America
Regional Director
Washington, DC
jorge.lopez@promexico.gob.mx
Offices in: Chicago, Dallas, Houston, Los
Angeles, Miami, Montreal, New York,
Toronto and Vancouver
Chicago
miguel.leaman@promexico.gob.mx
Dallas
diana.castaneda@promexico.gob.mx
ProMéxico
Headquarters
+ 52 (55) 544 77070
promexico@promexico.gob.mx
www.promexico.gob.mx
Houston
carlos.marron@promexico.gob.mx
Los Angeles
mario.juarez@promexico.gob.mx
Miami
cesar.bueno@promexico.gob.mx
Montreal
alfonso.mojica@promexico.gob.mx
New York
gerardo.patino@promexico.gob.mx
Toronto
jose.peral@promexico.gob.mx
Vancouver
emilio.rivero@promexico.gob.mx
Latin America
and South America
Offices in: Bogotá, Buenos Aires,
Guatemala, Santiago de Chile
and Sao Paulo
Bogotá
carlos.edgar@promexico.gob.mx
Buenos Aires
daniela.robles@promexico.gob.mx
Guatemala
ignacio.elias@promexico.gob.mx
Santiago de Chile
joel.enriquez@promexico.gob.mx
Sao Paulo
juan.pintoribeiro@promexico.gob.mx
Europe
and Middle East
Offices in: Brussels, Frankfurt,
London, Madrid, Milan, Paris and
Stockholm
Brussels
alejandro.saldivar@promexico.gob.mx
Frankfurt
erwin.feldhaus@promexico.gob.mx
London - Middle East
jose.neif@promexico.gob.mx
Madrid
ximena.caraza@promexico.gob.mx
Milan
oscar.camacho@promexico.gob.mx
Paris
guillermo.garza@promexico.gob.mx
Stockholm
nicole.felix@promexico.gob.mx
Asia - Pacific
Offices in: Beijing, Mumbai, Seoul,
Shanghai, Singapore, Taipei and Tokyo
Beijing
ari.saks@promexico.gob.mx
Mumbai
aldo.ruiz@promexico.gob.mx
Seoul
miguel.delvillar@promexico.gob.mx
Shanghai
rodrigo.contreras@promexico.gob.mx
Singapore / New Markets
francisco.bautista@promexico.gob.mx
Taipei
cesar.fragozo@promexico.gob.mx
Tokyo
esau.garza@promexico.gob.mx

8 briefs.
Negocios
IT
Plexus
Bets on
Mexico
Aerospace
A New Player in the Mexican Aerospace Industry
The US company Plexus
Corporation inaugurated
the expansion of its plant in
Ciudad Juárez, Chihuahua,
where it will manufacture
high-tech electronic devices
and create 450 new jobs.
Plexus invested 14.6 million
usd in the expansion,
which represents a 47%
increase on the company’s
initial investment upon its arrival
in Mexico in 1999, when
it established its first plant
with 22 million usd.
Plexus Corporation is a
company based in Neenah,
Wisconsin, that manufactures
and develops information
technology (IT) products
and services for sectors such
as telecommunications,
health, security and aerospace,
among others.
www.plexus.com
Fokker Aerostructures and A-
merican Industries will build
a new Fokker production facility
in the city of Chihuahua in
Mexico, to be opened by the end
of 2011.
With a 14 million usd investment,
the facility will produce
work packages for aircraft programs
of major Fokker Aerostructures
customers.
Production is expected to begin
in the fourth quarter of 2011
and its initial output is expected
to be delivered in the first quarter
of 2012.
Fokker’s partner in the project,
American Industries, is a Mexican
company that has supported
leading aerospace industries with
the set-up and management of
production activities in Mexico.
www.fokker.com
Photo archive
Financial services
Unprecedented
Investment
BBVA Bancomer, Mexico’s largest
bank, will invest 2 billion usd
over the next three years to expand
its services in Mexico.
The investment, unprecedented
in the Mexican banking system,
will be used to develop the
bank’s technology, expand its
branches and cash machines,
promote mobile banking and
finish building BBVA Bancomer’s
new headquarters in Mexico.
www.bbva.com
Photo courtesy of bbva

iefs.
Personal care
Photo courtesy Of mazda
Mazda Motor is building a new 500
million usd factory in the city of Salamanca,
in the central Mexican state
of Guanajuato.
The facility will be the fourth
overseas assembly site for the Japaautomotive
Mazda Parks in Mexico
nese automaker after the US, China
and Thailand.
Construction of the new plant
in Mexico is set to begin this fall,
with vehicle production to start in
the second half of 2013.
Mazda plans to build compact
cars, initially for sale in Mexico
and South America, and eventually
export to North America.
The factory will have initial capacity
of 50,000 cars a year but
by March 2014, annual production
is expected to reach up to
140,000 units.
www.mazda.com
Ongoing
Expansion
Procter & Gamble (P&G)
started operations of its new
plant in Irapuato, Guanajuato,
where Gillette razors will be
manufactured. About 250
million usd were invested in
the new facility, which was
built in two years. P&G has
nine facilities and two distribution
centers in Mexico,
where it employs more than
7,000 people.
www.pg.com
Electric industry
Improving Capacity
Photo Courtesy of electrolux
With an investment of more than 60 million usd, the Swedish company
Electrolux expanded its manufacturing facilities in Ciudad Juárez,
Chihuahua, to manufacture plastic injection and metallic embossing
parts for washing machines, dryers and refrigerators.
Electrolux, a company established in Stockholm, Sweden, manufactures
and sells appliances for home and professional use. It has
three manufacturing facilities in the state of Chihuahua where it
manufactures washing machines, refrigerators and floor-care appliances,
which are exported mainly to the US.
group.electrolux.com

10 Negocios
Photos Archive
Campeche
GREAT
BUSINESS
OPPORTUNITIEs
WITH A HIGH POTENTIAL FOR manufacturing WORLD-CLASS PRODUCTS,
CAMPECHE IS THE BEST PLACE TO FIND A WIDE RANGE OF EXPORTABLE GRAINS,
FRUITS AND VEGETABLES THAT GOES FROM HABANERO PEPPER TO HONEY,
EXOTIC FRUITS, WOOD AND A great VARIETY OF SEAFOOD.
The state of Campeche is part
of the Yucatán Peninsula, in
Southeast Mexico. Its agro
industrial infrastructure has
enabled growth in the manufacturing
of various products, such as honey
and rice, which are ranked first in national
production; habanero pepper from the Yucatán
Peninsula, with appellation of origin;
sugar cane, with a production of 46,000 tons;
corn, whose production doubled in 2010
compared to 2009; watermelon, papaya,
wood, fish and seafood such as shrimp, octopus,
snail and crab.
The state has also developed natural fruit
beverages from aloe vera, tamarind and coconut,
as well as various types of habanero
pepper sauces that are widely accepted in the
market. Apiculture and the habanero pepper
industry are key components of the industrial
process that has been developed in the
state of Campeche, which has a high growth
potential. It also represents an amazing opportunity
on an international level.
After many years of being ranked the
second largest producer of honey and its
derivatives in Mexico, Campeche finally became
the national leader in 2010. Campeche
honey producers have worked hard to rescue
their industry, investing in development and
increasing productivity, without affecting the
natural resources that are characteristic of
Campeche honey. Currently, Campeche’s apiculture
is highly technical, intensive and organized,
and is expected to increase production
volumes, leveraging scale economies. This
situation will bring increased negotiating
power, reduced production costs and boost
the country’s competitiveness globally.
Campeche’s main honey producing municipalities
are Hopelchén, Candelaria, Champotón,
Tenabo, Campeche, Calakmul, Escárcega,
Carmen, Calkiní and Hecelchakán. These
municipalities have exported to countries such
as the US, Germany, England, France and several
countries in Central America.
Habanero pepper is one of the most traditional
vegetables in Mexico which features
in the daily diet of thousands of Mexicans. Its
farming, which goes back thousands of years,
has transcended to this day, and it is consumed
in many countries around the world.
Habanero pepper became more relevant on
June 4, 2010, when the appellation of origin
“Habanero pepper from the Yucatán Peninsula,”
was granted to the states of Campeche,
Yucatán and Quintana Roo, which together
produced 5,431 tons in 2009.
This pepper is appreciated because of its
exquisite texture and piquancy; it is known
and accepted around the world as one of the
vegetables whose image is immediately associated
with Mexico. In the state of Campeche,
several value-added habanero pepper products
have been developed, such as sauces
with various degrees of hotness made with
habanero pepper and other ingredients like
garlic and spices, in order to create a unique
flavor. The finished products are of the highest
quality, excellent image and have a delicious
and unique flavor; primed for success,
they can be exported around the world.
Mexico exports sauces mainly to the US, Germany,
the Netherlands, China, Thailand, Italy
and Spain, in order of importance, with a 6%
annual growth rate.
Campeche is an inviting place to learn
about Mexican gastronomy, given the quality
and uniqueness of its products –food,
beverages, exotic fruits and woods, as well as
traditional and quality fish and seafood– and
to savor a piece of culture, growth, development
and hard-working people. In short,
Campeche’s products, like its people, are incomparable.
n
www.productodecampeche.mx

Special Report Campeche
After many years of being ranked the
second largest producer of honey and
its derivatives in Mexico, Campeche finally
became the national leader in 2010.
Outstanding products: Food,
Beverages, Exotic Fruits
and seafood.
Campeche’s products are
of the highest quality.

12 Negocios Illustration Archive
COMPETITIVENESS
IN MEXICO
Every year, Mexico becomes a better place to do business in. According to the
World Competitiveness Yearbook by the International Institute for Management
Development, Mexico is making progress in its business environment and
improving its advantages for doing business.
by maría cristina rosas*
Mexico –along with Turkey–
made the most sizeable
gains in competitiveness
in 2010, of the 59
countries analyzed in the
World Competitiveness Yearbook 2010-2011
produced by the International Institute for
Management Development (IIMD). The recovery
achieved by Mexico in 2010, after the
dire economical situation facing the world in
2008 and 2009, is good news.
According to the yearbook, the most competitive
countries and/or areas are the US and Hong
Kong (equal top), followed by Singapore, Sweden,
Switzerland, Taiwan, Canada, Qatar, Australia
and Germany. In 2010, Mexico climbed from
47th in the 2009 list, to 38th. Meanwhile, Brazil,
dropped from 38th in 2009 to 44th in 2010.
The IIMD yearbook classifies countries
according to a global competitiveness index
calculated in line with indicators that are
real and perception-based. The former are
hard variables to objectively measure fac-
tors such as a country’s government’s debt.
The latter are variables that arise from surveys
carried out in each country, where actors
in the economic sector are asked about
various factors and about their perception of
how these factors may or may not become
obstacles to doing business.
In the specific case of Mexico, progress
in competitiveness indexes can be explained
thanks to improvements in various indicators.
First of all, the economic performance indicator
ranked it 16th in the list, nine places above
its 2009 ranking. This factor weighs up the
domestic economy, international trade, foreign
investment, employment, and inflation.
The government efficiency indicator rose
to 43rd place, up three spots from 2009. That
factor takes into consideration public finance,
fiscal policy, the institutional and social framework
and business legislation.
In terms of business efficiency, Mexico was
ranked 43rd, climbing eight places from 2009.
That factor assesses business productivity, the
labor markets, the finance sector, management
practices, social attitudes and values.
For infrastructure, the country ranked 49th,
climbing one place from 2009. That factor evaluates
basic infrastructure (water, energy, and
transport), information technologies, scientific infrastructure
(research and development), health,
education and the environment.
As noted above, the criteria that comprises
each factor derives from an objective measurement
as well as from perceptions based
on surveys.
This progress has been made possible by
Mexico’s growing strengths, such as the incorporation
of information technologies, the size
of the country’s internal market, its macroeconomic
stability, a relatively low public debt and
a public deficit that is under control.
Mexico’s proximity to the US market and
its increased competitiveness with the entry
into force of the North American Free Trade
Agreement (NAFTA), have been two major
contributory factors for that success.

Business Tips
Alongside the US and Canada, Mexico is
undertaking a process of consultation and
reaching agreements on competitiveness at
various levels, with the private sector playing
an ever larger role. In fact, after 9/11, the private
sector in the three countries has made
efforts so that the security measures applied
along their borders and within their territories
do not have an adverse effect on trade and investment.
Mexico is also aware of the importance of
increasing its competitiveness in the light of
two equally relevant situations: the presence
of a wide network of trade agreements with
countries across three continents and the
growing competitiveness of countries such as
China. However, unlike Mexico, China lacks
trade agreements with either the US or Canada,
owing to the great distance that separates
them, which places the Asian country at a relative
disadvantage.
We must also consider another important
factor. The IIMD indicates that, as a result of
the financial crisis, the most developed countries
have decided to increase their public debt
–up to 47% of their gross domestic product
(GDP)– and a dozen European countries have
even exceeded the 50% mark. Though it may
Mexico remains one of the
most competitive countries
in terms of the cost of
producing and exporting
goods, since its proximity to
the world’s major markets
has improved its response
times to meet demand and
lowered its inventory costs.
be understandable that public expenditure is
raised in order to stimulate their respective
economies and to benefit society, in terms of
competitiveness it is risky to bet exclusively on
government expenditure. Of course this will
force governments to be more efficient, given
that it will strongly affect their countries’ competitiveness.
But if the government manages
the situation poorly, the cost may be high. The
ideal scenario, according to IIMD, is where
a balance is struck between efficient governments
and companies, exemplified by Hong
Kong, Singapore and Australia.
Mexico is therefore in an advantageous position
given the healthy state of its finances and
increasingly skilled workforce. Its economy
is growing, some of its industrial and services
sectors are expanding and overall it has a more
promising outlook.
Mexico also remains one of the most competitive
countries in terms of the cost of producing
and exporting goods, since its proximity
to the world’s major markets has improved its
response times to meet demand and lowered
its inventory costs. On the issue of freight, it is
suffice to mention that in percentage terms
the costs of sending goods from Mexico to the
US represent 1.1% of the product’s value; from

14 Negocios Illustration Archive
In the World Competitiveness
Yearbook 2010-2011, Mexico climbed
to 38th place from 47th in the 2009
list. meanwhile, Brazil dropped
from 38th in 2009 to 44th in 2010.

Business Tips
Europe, this costs US citizens 3.8% of the product’s
value; from Eastern Asia, 4.4%; from China
6.2%, from Brazil 6.3% and from Chile 7.7%.
The Mexican government has furthermore
begun to cut red tape in order to increase
the country’s competitiveness and productivity.
That has cut the 34,457 regulations
that existed up until at least three years ago to
19,254 in 2011, a reduction of at least 15,203.
That has resulted from the increasing integration
of production patents in Mexico with
those of the US and Canada, with participating
economies creating the conditions to ensure
supply chains and workforce training as
required in the various production processes.
With NAFTA, a trilateral standardization of
norms can now be discussed. In fact, following
consultations with private sector communities
in Mexico, the US and Canada, the three
governments have agreed to take forward the
proposal of common criteria for standards and
norms, to help improve the competitiveness of
the three countries and of Mexico in particular.
In the understanding that increasing the
competitiveness of countries does not happen
overnight, governments must prioritize. Mexico
has therefore set about making progress by:
Promoting structural reforms in education,
the labor sector and fiscal policy.
Improving the business environment for
a more efficient regulation.
Making major investments in public infrastructure
to reduce freight costs between
Mexican cities.
Improving technological infrastructure.
Focusing efforts on strengthening the internal
market.
Prudent handling of public finance and
improvements in the administration of fiscal
policy have led the government into becoming
more efficient, especially with higher
wages and improved performance in the
business sector. As a result, the aforementioned
work has made Mexico a better place
to do business in, within an environment of
certainty, trust and efficiency. n
*Professor and researcher in the Political and
Social Sciences Faculty, National Autonomous
University of Mexico (UNAM).

16 Negocios
Competitiveness,
an Attitude
Mexico is fully equipped to lead as a global player
with the busiest and most profitable border on the
planet, two seas flanking the country and a great
variety of climates for the production of a wide
range of goods. But what Mexico has more of is:
a new spirit.
by josÉ mario rizo rivas*
“The problem is never how to get new, innovative
thoughts into your mind, but how to
get old ones out.”
— Dee Hock.
Jack Welch, the long serving CEO of General
Electric Company, said that if a company
lacked a major and useful competitive advantage,
it should avoid competing. That idea
can be applied just as well to the situation
of national identities in an era where hyper
globalization is breaking down borders and
creating a new definition –a complex one, to
be sure– for “competitiveness.”
Therefore, what is Mexico’s competitive
advantage And what do we mean when we
talk about competition in Mexico
The World Bank recently published its
report Doing Business 2011 which gives the
country a higher ranking than in previous
years.
The report says that Mexico’s economy
has improved in the process of opening itself
up to new business opportunities, becoming
swifter in handling construction and
infrastructure permits and making significant
progress in professionalizing its foreign trade
and compliance with business contracts. That
represents a leap forward in terms of global
competitiveness. Mexico climbed six places
for its ease of starting a business and is Latin
America’s top ranking country in that area,
35th of the world’s 183 economies.
Doing Business reports that “globally, Mexico
has been one of the countries to have made
most reforms to its business regulations to expand
the opportunities of local firms.”
The World Economic Forum’s Global Competitiveness
Report 2010-2011 indicates that
Mexico must make much faster progress in
meeting its commitment to a major agenda
of structural changes to become one of the
world’s 10 largest economies before 2050.
Mexico is progressing toward achieving that
objective.
Mexico is working hard to improve its competitiveness
in terms of labor market flexibility,
quality of education and the closing of the
digital divide separating different sectors of the
population.
According to data provided by the World
Economic Forum, Mexico is well placed to
protect foreign investments, ranking 33rd of
all countries. It ranks 20th in terms of its air
transport capacity, its macroeconomic indicators
also continue to be notably stable and
attractive for investors, generating added
confidence, and, in addition, foreign businessmen
are grasping the strength of the
country’s internal market.
“Mexico also has a number of important
competitive strengths that are similar to those
of Brazil, such as the large size of the market
available for local companies and a sophisticated
and innovative private sector with well
developed clusters and companies operating
throughout the value chain. Mexico is an economy
moving toward the most advanced stage
of development. The current administration
has adopted, or plans to adopt, a number of
competitiveness enhancing reforms,” according
to the report.

Guest OPINION
But over and above the figures, there’s
something else that is changing in the spirit
of Mexicans and clearly reflects a distinctive
mark of the country’s competitiveness. Something
that, in the words of Jonas Ridderstrale, is
built on two factors: emotions and imagination.
The symbolism of national identities is
a factor and in Mexico’s case, the eagle that
grasps the serpent, almost taking flight, reflects
the spirit of Mexicans’ strength over the centuries.
That shows the emotion and imagination
to which Ridderstrale refers.
That is the attitude and aptitude to press on
despite future uncertainties.
In Mexico we know that the time has come
to believe in our abilities and to take advantage
of our talents, our natural creativity, our skill in
solving problems and our crystal clear vision of
what we want, especially in terms of business.
Mexicans are highly competitive when faced
with challenges. For example we have world
class companies and businessmen, with examples
such as Telmex, Bimbo, Cemex and others
that are currently competing on the world stage.
“Mexico needs to act with a sense of urgency,
dramatically improve its ability to execute,
as we’ve moved beyond the planning stage and
now we need to put things into motion. It’s also
important to follow up on everything that has
already been implemented, as these achievements
are the anchor and the foundations for
the future,” according to Roberto Newell, president
of the Institito Mexicano para la Competitividad
(IMCO), an independent research center
on competitiveness in Mexico.
Mexico is positioning itself in the 21st century
with the same strength as its roots and it
is taking flight with a visionary and powerful
attitude. Mexicans’ talent, the drive to start
businesses, the character to handle unforeseeable
changes, these are all signs of a unique
competitiveness, that of Mexican businessmen
who venture out into the world to make the
most of opportunities and excel in complex
global markets. n
* Partner-Director of Salles, Sainz - Grant Thornton,
S.C., Guadalajara, Mexico.
Doing Business reports that
“globally, Mexico has been
one of the countries to
have made most reforms to
its business regulations to
expand the opportunities
of local firms,” while the
World Economic Forum’s
Global Competitiveness
Report 2010-2011 indicates
that Mexico must make much
faster progress in meeting
its commitment to a major
agenda of structural
changes to become one
of the world’s 10 largest
economies before 2050.

18 Negocios Photo Archive
Fashion
Marries
Technology
Underfoot
While countries like China opt for quantity versus quality, Mexico’s shoe industry is
focusing on the designer niche and is modernizing its processes in a drive to become
more competitive and anticipate trends.
by gustavo aréchiga

Special Feature Mexico’s Mexican partner Shoe enersave
Industry
Photo courtesy Of Botas Jaca
Mexico doesn’t just make
cowboy boots. In fact, the
country’s shoe industry
dates back 400 years, well
before the days of the Wild
West. Boots are still made, of course, except today
they form part of designer collections in an
industry that creates almost half a million jobs.
Innovative design, technology and the application
of know-how are helping push back frontiers
in a market that is as fiercely contested as
the pioneer territories of old.
The country’s 7,980 shoe manufacturers
produce 244 million pairs of shoes a year, on
average, for sale in Mexico and export. The
state of Guanajuato accounts for 70% of domestic
output, Jalisco pitches in with 20% and
other states make up the remainder.
In 2010, Mexican shoe exports were valued at
325.6 million usd, with the bulk of sales ending up
in the US, Panama, Canada, Brazil, Spain, Guatemala,
Japan, Cuba, Puerto Rico and Colombia.
The 2009 financial meltdown had as much
of an impact on the shoe industry as it did on
other sectors and tough economic times forced
manufacturers to seek out new markets.
“We are recovering from a crisis during
which we received assistance from our federal
and state governments in the form of programs
that prevented mass layoffs in the sector. We
are now in the process of consolidating exports
to the US, which has turned to Mexico for reasons
of proximity and price. American companies
preferred not to chance doing business
with China because they weren’t sure how the
market would react to the huge volumes. That
bolstered the Mexican shoe industry,” says Armando
Martín Dueñas, president of the Guanajuato
Shoe Industry Chamber.
In light of market conditions, the Chamber
has concluded that Mexico should be concentrating
on the fashion side of the industry.
To get an edge over their global competitors,
Mexican manufacturers need to cash in on
their capacity to produce collections in short
production cycles, ensuring they stay one step
ahead of the latest trends.
That means that if China competes in
terms of volume and costs, accounting for 6.5
of every 10 pairs of shoes purchased worldwide,
Mexico’s competitive advantage lies in
creating short production cycles to meet the
demands of more discerning consumers who
are after cutting-edge fashion.
“In Mexico, we believe the alternative is
to produce small volumes for consumers
and distributors to sample and after we’ve
tested the water, we can restock orders much
more quickly. We’re talking about shipping
merchandise to the US in two or three days,
something that is complicated for China,” says
Martín Dueñas.
This same model has been adopted by
Jalisco. According to Francisco Javier Jiménez
from the Jalisco Shoe Industry Chamber,
the future of footwear will be shaped by entrepreneurs
who understand the importance
of fashion trends, brand positioning, the modernization
of production processes, short-cycle
exports and better trained workers.
“Ultimately, the goal is not only to defend the
domestic industry from competitors like China
but also to conquer new markets with quality,
well-designed products,” says Jiménez Rojas.
Mexican manufacturers are improving
their processes by the day. A series of plant
modernization and quality control programs,
like the Mexican Shoes Quality certification
program, have been introduced. Since it was
launched in July 2007, that program has received
applications from over 130 companies
eager to be certified under its four-phase
methodology geared toward improving processes,
planning and quality control.
“We’ve also created platforms for specific
design requirements. For instance, 10 Guanajuato
manufacturers are making shoes for
the Spanish-based Grupo Inditex and its Zara
stores, which is a great accomplishment for
Mexico,” says Martín Dueñas.

20 Negocios Photos Courtesy of Botas Jaca
Mi Zapatería (My Shoestore) is a relatively
new program set up to provide marketing
advice and business software for the shoe industry.
The first phase of the program has a
budget of 1.5 million usd, which will be used
to assist over 1,000 shoe stores in Guanajuato,
Jalisco and Estado de México.
Prospecta Moda
Apple Computer’s Steve Jobs once said: “In
most people’s vocabularies, design means
veneer. It’s interior decorating. But to me,
nothing could be further from the meaning
of design. Design is the fundamental soul of a
man-made creation.”
Guanajuato’s shoe manufacturers have already
grasped this concept and are now focusing
their efforts on design, smart marketing and
market research.
Last year, the Guanajuato Shoe Industry
Chamber channeled over 5 million usd into
Prospecta Moda, a center to promote innovation
and boost competitiveness.
The center monitors export trends and
areas of opportunity in the shoe industry
of 41 countries and sends regular reports to
Mexican manufacturers. Based on that information,
they can tap into new niches or
change course as market winds dictate.
Not long off the ground, the project is already
creating jobs and producing new shoe
collections, with designers fresh out of college
offering their services to shoe manufacturers.
Prospecta’s role is to get the industry
to listen to these informed views on fashion
trends and comprehend the competitive value
of each pair of shoes.
Prospecta Moda also seeks to shore up
the domestic market by changing the perception
of the Mexican consumer.
According to the 2010 report on National
Consumer Trends in Footwear, only 2.6% of
the population is influenced by the design
of a pair of shoes when making a purchase
decision.
The premise is that an industry that designs
its own shoes can go a long way toward
boosting local sales of Mexican-made shoes.
“We’re trying to redirect the local consumer
toward the country brand. Compared
to other industries, the shoe sector
has changed gradually, very slowly. We know
From the Cobbler to the
Cobblestones
The chain of production begins with
the leather sector and includes various
suppliers of lasts, soles, straps,
uppers and other parts needed to
make the finished product we see in
store windows. In Mexico, the shoe
industry employs 571,000 people.
the consumer cares more about design, comfort
and brand than where the shoe is made.
Nonetheless, based on the information we’ve
been compiling, the message we’re sending
out to the consumer is that this shoe was
made in Mexico and not only is it well made,
it’s well designed,” says Martín Dueñas.
Prospecta Moda is currently run by designer
Mario Méndez, a plastic artist with a
degree in art history. Méndez teaches at top
Mexican universities and works with various
public and private sector institutions on projects
of a cultural nature. n

Special Feature Mexican Shoe Industry
Footwear of the Future
Over the next 15 years, Mexico will have to double its annual production
to 360 million pairs of shoes just to hold on to its 2% share
of the global market.
The Guanajuato Shoe Industry Chamber has outlined four
specific areas for the country to work on to achieve that ambitious
goal:
1. Competitiveness and business development:
• Mexican Shoes Quality - a quality certification program for
Mexican shoemakers.
• Shoes from Mexico - a platform to publicize the full range of
Mexican-made shoes.
• Cevem - a training and consulting forum to strengthen the
industry.
2. Import duty relief on Mexican-made products.
3. Innovation and fashion
• Prospecta Moda - a Guanajuato-based center to promote
innovation and competitiveness at every phase in the production
chain, from leather suppliers to the marketing of the final
shoe displayed in store windows.
• International Fashion and Design Competition (Creare, for
its acronym in Spanish) to attract young clothing and shoe
designers.
4. Conquering new markets
• Participation in international fairs.
• Trade missions to other countries.
• International Footwear Fair (SAPICA, for its acronym in
Spanish). Held twice a year in León, Guanajuato, this is the
leading industry event of its kind in Latin America and the
second most important on the continent.
• Business meetings with foreign investors.

22 Negocios infographic oldemar
The Footprints of
Mexican Shoe Industry
in the World
Mexican
Shoe
Industry
Exports
$10.17
237.52
2005
$10.15
247.50
2006
$10.74
265.33
2007
Simbology
$
Value of Mexican
Shoe Industry
Exports in
millions of USD
Millions
of Pairs
of Shoes
Exported
$4.24
$5.73
Canada
290,405
388,059
Major
Buyers of
Mexican
Shoes
Millions
of USD
$
$
Country
2009
2010
Pairs
of Shoes
Simbology
1 2 3
Panama
Guatemala
Costa Rica
Japan
$1.73
216,698
$2.03
193,123
$2.54
120,432
$7.20
248,984
$1.74
268,605
$3.38
420,221
$2.64
211,781
$11.44
283,420
Source: Guanajuato Shoe Industry Chamber

Special Feature Mexican Shoe Industry
$12.60
$15.07
$18.74
$5.21
256.14
2008
257.15
2009
325.60
2010
108.48
2011
USA
France
$217.30
12’209,352
$3.00
38,379
$275.41
15’159,109
$4.68
57,520
Pto. Rico
Spain
$1.00
100,120
$1.98
214,846
$1.89
191,455
$2.71
228,030
1
Cuba
3
Brazil
2
$2.84
240,184
$1.42
474,212
$1.70
156,697
$3.37
756,493

24 Negocios photo Archive
Mexican
Boots Made
for
Walking
Jaca is a Mexican company specialized in
manufacturing boots. Its creations can be found in more
than 25 countries, among which are some of the world’s
most stringent fashion markets, such as Japan.
by antonio vázquez

Mexico’s Partner Botas Jaca
Jaca produces some 200,000
pairs of boots a year, most
of which –some 120,000 pairs
to be exact– are exported,
generating some 8.5 million
usd a year in foreign sales
revenues.
For over 60 years, Jaca has been conquering
new lands. Made in León, in the state of Guanajuato,
these cowboy boots have set foot in 25
countries and lived to tell the tale in every one
of them.
America, Asia and Europe are the main
markets for this Mexican company that has
spent six decades perfecting the classic cowboy
boot.
“From the color and quality of the leather
to the novelty of the design, the sole and
the embroidery, these are just some of the
small, but important details that make our
boots perfect and unique.” These are the two
words a company source used to define its
product.
According to Triny Negrete, director of the
company’s export department, Jaca boots are
sold in a long list of countries, including “the
US, France, England, Germany, Spain, Greece,
Poland, Japan, Dubai, Austria, Hungary and
Italy,” where they go by the brand names of
Mezcalero, Hacienda, Legendario, Western
and Rancho Foots.
“Jaca is a successful company focused on
innovating design and comfort. It has evolved
over the years, reinventing and perfecting the
classic cowboy boot without losing its essence,”
she continues.
Three decades ago, cowboy boots were far
from a pleasure to wear. Today, thanks to modern
materials and technology, they are now
soft and comfortable, but durable and with
that classic “tough guy” attitude.
That’s not to say they’re for men only: the
cowboy boot is universal, worn by women and
children too. And Mexico has the potential to
meet even the largest purchase orders. “We’re
not afraid of the competition. We have skilled
craftsmen,” says Negrete.
Jaca produces some 200,000 pairs of
boots a years, most of which –some 120,000
pairs to be exact– are exported, generating
some 8.5 million usd a year in foreign sales
revenues.
Its Good Year Welt boot in particular,
made of 100% cowhide, has struck a chord
with international clients. “Good Year Welt is
representative of the quality of our products.
Resistant and of the finest quality, the skilled
craftsmanship that goes into these boots is
what people come to us for.
Another selling point is their price, which is
relatively competitive compared to other markets,”
says Negrete.
Of the company’s 230-strong workforce,
the design area takes pride of place, since it is
responsible for the creative collections sold every
year in Mexico and abroad.
According to Negrete, some 80 boot models
are produced for the domestic market.
These are generally launched at specialized
fashion and footwear fairs like the International
Leather and Footwear Show, an annual
industry event held in August and September
in León, Guanajuato.
Some of Jaca’s collections feature as many
as 20 models, which are showcased at least
twice a year at fairs like the MICAM Shoevent
in Milan, Italy; the Magic Clothing Show in Las
Vegas, Nevada; and the Tokyo International
Shoe and Leather Goods Fair in Japan.
A thriving market for Jaca boots, “in Japan
we’ve introduced a style that’s fashionable, yet
classic at the same time, especially for women.
The girls there wear hot pants and tend to
show off their legs. In winter they wear cowboy
boots. It’s more of an equestrian style,”
says Negrete.
Cowboy boots, biker boots and even traditional
Mexican boots adorned with a serape
hand woven in the state of Oaxaca are just a
sampling of the designs Jaca has produced
during its 60-odd years in the saddle.
“We plan to focus more on the South American
market. We’ve been concentrating on
North America and Europe, but strategically
speaking, we’d like to explore South America,
Australia and the United Arab Emirates in the
future,” sums up Negrete. n
www.botasjaca.com

26 Negocios photos COURTESY OF DIONE
Making
Strides
The footwear company, founded by Federico González Obregón
in Guadalajara, 67 years ago, is still on a firm footing and aims to
penetrate international markets.
by karla garduño

Mexico’S PARTNER DIONE
Innovative Model
• Dione was founded in Guadalajara in 1944
by Federico González Obregón, Ignacio
Orozco and Dionisio García.
• 25 boutique stores in Jalisco, Sinaloa,
Nuevo León, Aguascalientes, Guanajuato,
Michoacán, Guerrero, Mexico City, Quintana
Roo and Estado de México.
• 350 employees.
• Target market: women aged between 27 to
50, with its core market focused on women
between 35 and 45 of a middle and middlehigh
socio-economic status.
Sixty seven years ago Dione took its
first steps in the Mexican footwear
industry. It has continued its progress
confidently, but never in a rush.
Dione walks, it doesn’t run.
The company, founded by Federico González
Obregón in Guadalajara in 1944, with 35 employees,
has since expanded ten-fold. It now has
over 350 employees and 25 stores in 10 states
across Mexico, including Mexico City.
“The factory was founded with the idea of
manufacturing high-quality ladies’ shoes, always
respecting two core principles, which continue
as part of the company’s philosophy to this day:
top-quality natural materials and specialized
workforce with an eye for detail,” explains Rodrigo
González Martínez de Velasco, commercial
director of the company and member of the
third generation of the company’s founders.
Shoes made by Dione –a name taken from
Greek mythology, the wife of Zeus and mother
of Aphrodite– aim to stand out through their
comfort, design and quality of materials, explains
González Martínez de Velasco. After consolidating
its position in this segment, the company
began manufacturing handbags, scarves,
hats, key-rings, belts and other leather goods.
Despite competition, especially from countries
such as China, and the global financial crisis
of 2008 and 2009, Dione has taken the right
steps to continue growing.
In 2010 the company grew by 29% and expects
to grow by 15% in 2011.
“The competition is stronger than ever in
our market and it’s increasingly difficult to
achieve growth. We have succeeded by improving
our manufacturing and retail processes.
We’ve begun using lean manufacturing
processes and we have changed our sales and
other methods in our own stores,” explains
González Martínez de Velasco.
“With our clients such as department stores
and shoe stores around the country, we have
benefitted by focusing increasingly on fashion
which, combined with the comfort of our
products and the use of exclusive materials, has
given us continued strength. The short distance
between manufacturer and client enables a
fast response time which also helps,” he adds.
Despite competition, especially
from countries such as China,
and the global financial
crisis of 2008 and 2009, Dione
has taken the right steps to
continue growing. In 2010 the
company grew by 29% and
expects to grow by 15% in 2011.
Toward the end of 2009, Dione decided to
halt its exports. However, the company is currently
developing plans to market its shoes in
the US, Canada and South America.
A Modern Approach
Dione seeks to distinguish itself with fashion
products of genuine value. To this end a team
of designers based in Guadalajara work together
with the production department that
sources the finest materials and uses the latest
techniques.
The company recently invested in technology
that modernizes its processes and increases
its production by 20%.
According to Pablo González, the company’s
manufacturing director, at the close of
2009, when the footwear industry was reeling
from the financial crisis and the AH1N1 public
health scare, Dione was producing 9,000
pairs of shoes per month but now, thanks to
the modernization of its manufacturing plant
and with more personnel, it is producing up to
12,000 pairs per month.
But this increased production has not come at
the expense of quality. Dione’s challenge is to keep
its promise of value and to offer fine and wellmade
products, explains its Commercial Director.
“The difference between us and our competition
is that our most important asset is our
brand. We use every means necessary and go
into great detail to ensure each of our products
is fashionable and comfortable. Dione is a semiluxury
product whose value often exceeds its
price,” says González Martínez de Velasco.
Industry Challenges
Mexico’s geographic location and its trade agreements
with several countries give its footwear industry
an advantage. “The next step is to strengthen
brands and the operation of Mexican companies,”
states González Martínez de Velasco.
He considers that for the Mexican footwear
industry to consolidate its position it must build
up clients’ trust in Mexican brands and fashion.
Dione is making great strides in that direction. n
www.dione.com.mx

28 Negocios Photos courtesy of Gösh
Gösh Gets
Under
Japanese
Feet
Gösh is one of the few Mexican footwear companies that
have managed to enter the Japanese market. The company is
now planning to expand its presence in Europe and Central
America.
by antonio vázquez

Mexico’s Partner GÖSH
Gösh sold 3,200 pairs of shoes during its
initial foray into the Japanese market back
in 2007, a figure that is expected to rocket to
10,000 this year.
Four years ago, the footwear company
Gösh invaded Japan with
the firm intention of getting under
Japanese feet. Based in León,
in the state of Guanajuato, this is
one of the few Mexican shoe manufacturers
that have managed to make inroads in Japan,
a market that produces 100 million pairs of
shoes a year and imports 600 million made
in other countries.
Under the Economic Partnership Agreement,
currently in force between Mexico and
Japan, Mexican-made shoes enter the Japanese
market free of import duties, while quotas
increase annually by as much as 20% during
the import period, which runs from April to
May. In 2010, 662,000 pairs of Mexican shoes
sauntered into Japan under that favorable arrangement.
“We began attending international fairs,
conducting market research and visiting
other companies in Japan in 2007. I think understanding
the Japanese market is the key to
success. Japan is another world, but once you
have a clear idea of the concept you want to
offer and understand the kind of footwear the
Japanese want, you can develop your product,”
says Cozzete Gutiérrez, who heads the
company’s export division.
Gösh sold 3,200 pairs of shoes during its
initial foray into the Japanese market back
in 2007, a figure that is expected to rocket to
10,000 this year.
“Twice a year,” says Gutiérrez, “Gösh
takes part in trade fairs in Japan. One of
these is the Tokyo International Fashion Fair.
Generally speaking, what the Japanese consumer
is looking for is a handcrafted product
representative of Mexico, like our eye-catching
woven shoes, which are a very Mexican
concept.”
In its efforts to adapt to the Japanese consumer
and vice versa, Gösh has created registered
trademarks tailored to Asian tastes but
with a 100% Mexican feel. For example, the
Purépecha product line sold in Japan takes
its inspiration from the sandals worn by the
indigenous communities of Michoacán.
To make the sandals, Gösh employs a
30-strong team of skilled workers. “We have
groups of weavers in Michoacán, communities
of people who work from home. They
make the shoe and weave the fabric. It’s a
special weave they use, similar to the serape,”
says Gutiérrez, adding that “We also have a
rustic concept that’s very much in demand.
This shoe features a natural rubber sole that
makes it look worn.”
After 11 years in the business, Gösh has
certainly found its footing but, according to
Gutiérrez, it’s not just about having a good
product: service matters too. “Customer service
and punctuality are vital to our business
relations with clients,” she says.
With an annual output of over 1.3 million
pairs of shoes, Gösh footwear is a favorite
among the ladies. “We usually go for what’s
fashionable. The Gosh concept is a trendy
one. We sell young fashion. Our consumers
are generally aged between 12 and 30,” says
Gutiérrez.
Every season, the company designs two
collections: one for the Mexican market and
another for export. Aside from Japan, the
brand has tapped into markets in the US,
Canada and Guatemala in Central America.
“Japan is our main market at the moment,
but we also have a presence in the US,
where our hand-stitched men’s and ladies
footwear is proving popular,” says Gutiérrez,
Every year, Gösh religiously attends the
Magic Clothing Show in Las Vegas, Nevada,
and MICAM, an international footwear fair
in Milan.
“We are interested in expanding. Our strategy
for this year is to get a firm toehold in the
Japanese market and broaden our client base
in the US. But we also want to explore Europe
and make an incursion into Central America,
where our products have awakened interest,”
she concludes. n
www.gosh.com.mx

30 Negocios photo Courtesy of Grupo industrial Miro
Mexican Textiles
strutting Down
International
Runways
Mexico’s textile industry is showing off its fashionable new garb, designed with
quality and added value. Back on its feet after the international financial crisis,
it is now out to conquer clients the world over.
by Jesús Estrada

cover feature Mexican textile industry
Mexico’s textile and clothing
industries have undergone
a fashion makeover. Decked
out in original designer
dress with more added value
than ever, the sector has left its international
competitors behind on the runway and is now
reaping the fruit of strategies adopted a few years
ago to address the global financial meltdown.
According to Rodolfo García Muriel, president
of the National Textile Industry Chamber,
in 2010, the textile and apparel industries
“bounced back,” with “textile and clothing exports
up 43% and 5%, respectively.”
This rebound in foreign trade can be attributed
to greater market diversification: in 2010,
North America accounted for 66% of the sector’s
exports, Latin America 30% and Europe
4%.
Creative, well-designed products that echo
the latest trends have made the industry more
attractive in the eyes of the outside world, to
the extent that many companies who were
seduced by Asia in the past are now taking a
fresh interest in Mexico.
The Mexico Fits initiative has indubitably
contributed to this trend. “We have been
approached by major US brands interested
in returning to the region and are working
with them to fill large orders. Many brands
left this part of the world and went to Asia.
Today they are coming back, partly because
costs are starting to increase in Asia, while
we are still competitive. Also, our proximity
to the US market means we can deliver
fashion products several times a year,” says
García Muriel.
Mexico Fits has proven an invaluable promotional
vehicle. “Mexico has recognized market
strengths and the big international brands
are enticed by the country’s value-added products,”
says García Muriel, adding that, with the
help of Mexico Fits, “we hope international clients
will turn to Mexico as a supplier of more
product categories. There’s even demand for
yarn. We now export yarn to countries we’ve
never exported to before.”
But the textile industry isn’t strutting down
the catwalk on its own; it is accompanied by the
apparel industry, because the Mexico Fits program
“isn’t just to promote fabrics and yarns,
but clothes designed and made in Mexico,” says
García Muriel.
Taylor-made mexico
According to Mexico Fits promoter, Luis de la
Calle, the program has been a success since day
one. Implemented three years ago, it arose not
from an “inward-looking “X-ray” of the sector,
but an external diagnosis based on interviews
According to Rodolfo García
Muriel, president of the National
Textile Industry Chamber,
in 2010, the textile and
apparel industries “bounced
back,” with “textile and clothing
exports up 43% and 5%, respectively.”
with international clients, who were asked to
give their views on the Mexican textile and
clothing industries in terms of price, quality,
stitching and delivery, among other aspects.
“This led to the development of the ‘Taylor-made
Mexico’ or ‘Mexico Fits’ concept.
The outcome has been a change in how the
Mexican industry is perceived: once viewed as
‘complementary to the large collections,’ it is
now judged on its design potential too,” says de
la Calle. A brand has since been built to bring
the industry closer to the consumer and now,
he says, we enjoy a good relationship, not just
with importers in the US, but with “chains that
are rediscovering Mexico as a major supplier
at a time when China is starting to experience
problems due to hikes in raw materials. In recent
years, we have been posting considerable
growth, especially in exports to the US, and we
are now beginning to make up the market share
we lost ten years ago.”
Stitching
Strategies together
With the backing of the Mexican government,
the country’s textile and clothing
industries are tacking together tactics to
give the sector a leg up.
Sustainability is at the heart of one such
strategy, prompting the National Textile Institute
to enter into an agreement with the
Textile Technology Institute of Spain. The
goal is to help between 15 and 20 Mexican
companies a year obtain the Made in
Green certification, which international
firms typically demand of their suppliers.
According to sources from the Pueblabased
institute, the agreement also provides
for a Textiles Development Center to
foster the application of new technologies
in the manufacture of fibers and design of
garments. The center is expected to be up
and running by 2012.
The strategies adopted by textile and
clothing industry leaders have had a
marked impact in western parts of the
country, where measures to boost competitiveness
have met with support from
other fashion and design-driven sectors.
“We are on the lookout for new, innovative
products so we can compete on an
international scale. That is where design
and innovation come in. We are involved
in some very interesting projects with the
shoe, jewelry, clothing and textile chambers,
which have similar interests,” says
Uriel Díaz Santana, president of the Western
Textile Industry Chamber.
Minerva Fashion is a prime example
of that type of project. The event, which
showcases the creations of designers from
all four industrial sectors, celebrates its
fourth anniversary in December.
This year, Minerva Fashion coincides
with the 2011 Pan American Games in
Guadalajara, which the industry views
as an excellent opportunity to “show the
world what we do with fashion here.”
“We are also working on the Jalisco
Industry Research, Development and
Innovation Center (CIDIJAL), which will
boast lab, design, innovation and market
research areas,” says Sergio López de la
Cerda, who represents the Jalisco delegation
in the National Clothing Industry
Chamber.
CIDIJAL, which will open its doors
this year, will focus on developing “new
techniques and ways” of designing and
manufacturing garments and on improving
training to make the industry more competitive,”
says López de la Cerda, adding
that the sector also has a Design Center
that “furnishes members with up to date
information on fashion, color, fabric and
consumer trends.”

32 Negocios photo Courtesy of Grupo industrial Miro
Constructive Textiles
Some of Mexico’s textile companies have
taken to targeting niches that have escaped
the attention of their larger Asian competitors.
The strategy seems to be paying off
for one of them in particular – the Jaliscobased
Corporación Burlington.
“We have sidestepped the international
markets targeted by countries like China
to concentrate on more specialized niches,
like cotton paneling for the construction
industry, which we sell on the US market.
Growth is encouraging and we don’t
have a lot of competition at this moment
in time,” says Burlington’s CEO Javier
Gutiérrez Treviño.
The sheetrock walls typically found in
American homes are filled with fiberglass
but Burlington’s cotton panels act like insulation,
allowing homeowners to “save on
air conditioning and heating, while offering
a long lasting, environmentally friendly
alternative that doesn’t burn and can’t be
destroyed.”
“There are two or three companies in
California offering products like ours but
Another positive offshoot is that Mexican
companies are now “utilizing their production
capacity more, but with a focus on value added
brands and design [...] There is also a greater
variety of fabrics, which broadens the possibilities
for the clothing industry [...] We are starting
to win market share in sub-products such
as fabrics for industrial uniforms and high-spec
fireproof cloths. We are well positioned in the
fabrics market for the medical sector [...] and
have registered substantial growth in cashmere
suits,” says de la Calle.
The underlying goal of the program is to
promote recognition of Mexico’s potential.
And it seems it is taking its mission seriously:
this year’s Magic Show, the preeminent apparel
and fashion trade show in Las Vegas, will
feature a Mexico Fits Pavilion to promote the
concept, brand and products. This is a first for
Mexico,” says de la Calle, adding that the country
is “the US’ fifth-most-important supplier in
these areas and now we’re going to tell them
we’re back, with better quality, more variety,
trendier and with a brand to boot.”
demand is high in the housing construction
sector and this is where we have been able
to get a competitive edge over China,” says
Gutiérrez Treviño, whose textile firm is
one of the few in Mexico that has dared to
venture off the beaten track.
But Burlington isn’t resting on its cotton
panels. According to Gutiérrez Treviño, the
company has also made an incursion into
the “medical industry, manufacturing towels,
sheets and hospital supplies; the food
industry, making tablecloths for restaurants
and the cleaning products business,
selling mops and cloths. These are totally
different markets in comparison to the
Asian ones and they’re growing, especially
the restaurant and medical niches. What’s
more, we don’t have to slash our prices like
you have to when you’re competing with
Chinese made clothes.”
These are the strategies that have
driven Burlington’s sales growth in 2011.
“During the three previous years, we
were stuck, but next year we’re projecting
growth of between 15% and 18%,” says
Gutiérrez Treviño, adding that “exports
are up 10% too.”
Companies interested in participating in
Mexico Fits must meet international certification
standards pertaining to employee working
conditions and environmental regulations.
A Home Victory
It isn’t just on foreign soil that the apparel and
textile industries are hemming in their adversaries.
Mexican companies are finally winning
the battle against black market goods, a complex
problem that affects all nations to a greater
or lesser degree.
“We’ve noticed that our clients are buying
more domestic products than imported ones.
This change in attitude began in 2010 and has
a lot to do with the rise in the price of Chinesemade
goods,” says Sergio López de la Cerda,
president of the Jalisco delegation in the National
Clothing Industry Chamber, which represents
the central-western region of the country.
“Imported merchandise has become more
expensive,“ says López de la Cerda, “and smaller
businesses aren’t selling the volumes they
used to, so they’re looking for similar Mexican-
Design, innovation and added
value may be the sector’s new
watchwords, but López de la
Cerda believes it has a number
of other strengths, not least
“a great deal of experience
and knowledge of the market.”
made products. Larger businesses that rely
heavily on imports have also seen their revenues
drop because higher import costs have
eaten into their profit margins. They continue
to import, but are buying more Mexican-made
goods as a means of boosting their profits.”
But the home victory over imports goes
beyond the issue of costs; it is also tied in with
the strategies the government and the industry
have been implementing in recent years. “Mexican-made
products that combine fashion and
added value are ousting imported ones, which
is why we are focusing on this aspect,” says
López de la Cerda.
Western Mexico has a textile tradition dating
back more than 150 years. Home to some
of the country’s key industrial centers, it is also
the region where there has been an upturn in
foreign sales. According to López de la Cerda,
this is where “we are winning the most ground,
with exports up 12% in 2011 compared to 2010.
Major brands that used to buy from Asia now
account for the bulk of Mexican exports and
this has given us a larger share of the US market,
for example.”
The apparel industry has reported growth
of 5% in domestic and foreign sales combined,
“but as the sector gathers momentum, we
should see markets expand and sales increase,”
says López de la Cerda, adding that “it will be a
much more mature sector that will necessarily
incorporate design and originality into the garments
it makes.”
Design, innovation and added value may
be the sector’s new watchwords, but López
de la Cerda believes it has a number of other
strengths, not least “a great deal of experience
and knowledge of the market. More specialized
products are being made,” he says, “a trend
that is particularly evident in regions that have
access to skilled labor and creative talent, and
we have manufacturers turning out top quality
apparel.” n

cover feature Mexican textile industry
Intermoda, the World’s
Window on Mexican Fashion
Without a doubt, the most prestigious fair
of its genre in Latin America, Intermoda attracts
20,500 buyers and visitors, and 700
exhibitors representing 2,000 brands to its
twice-yearly shows in the western Mexican
city of Guadalajara. Now celebrating its 27th
anniversary, this is an invaluable opportunity
for those on the prowl for talent and quality.
On January 18-21 and June 19-22, Mexico
paraded its 2011 Spring-Summer and 2011
and 2012 Fall-Winter collections in front of ten
countries in a 36,000-square-meter exhibition
venue.
Conceived in Guadalajara in 1984 at the
initiative of regional members of the National
Clothing Industry Chamber, Intermoda initially
took the form of showrooms set up in
the rooms of some local hotel or other. Soon it
sprouted a mind and body of its own, fiercely
independent and of monstrous proportions.
Today, Internacionales de la Moda, S.A. de
C.V. (Intermoda) is a private corporation that
is kept busy most of the year coordinating the
1,282 stands and ten runways of its two seasonal
fairs, in addition to organizing endless
conferences and finding accommodation for
representatives from countries interested in
sharing views on the supply, design and production
of clothing, accessories and footwear.
In 2011, Intermoda received visitors from
Colombia, India, China, the US, Spain, Turkey,
South Korea, Barbados and Panama.
Intermoda President Mario Flores says
that Mexico is starting to grab the world’s
attention thanks to a sizeable group of young
Mexicans, the so-called “children of globalization,”
whose fresh ideas have taken the industry
by storm. “Schools and universities, both
public and private, have also played a role in
the professionalization of the fashion industry
and this has contributed to the boom in
Mexican design,” he says. New talent is always
welcome at Intermoda, whose more recent
shows have featured a pavilion exclusively for
emerging designers.
The lifting of trade barriers is another
factor that has forced the country’s textile
and clothing industries to wake up, to the
extent that today they can compete on a par
with any other in the world. “Manufacturers,”
says Flores, “are now aware that design is
what puts them in a position to compete and
Four days of Intermoda fashion
in figures*
international fairs have become a showcase
for designers, so manufacturers can see and
hire them.”
Most of Mexico’s clothing manufacturers
and exporters are located in the metropolitan
area of Mexico City, including Estado de
México, although many are also to be found in
Jalisco, Yucatán, Aguascalientes, Monterrey
and Coahuila. It shouldn’t be forgotten, however,
that the northern states have been growing
and processing cotton since time immemorial,
providing a source of top quality cloths for the
domestic clothing industry.
Intermoda is the world’s window on
the work of the country’s top designers and
manufacturers of clothing, footwear and accessories.
Don’t miss the upcoming show on
January 17-20, 2012!
• 36,000 square meters of exhibition space.
• 2 business centers.
• 136 million usd in commercial transactions.
• 20,500 buyers and visitors.
• 2,000 Mexican and foreign brands.
• 700 exhibitors.
• 91 creators at the Design Pavilion.
• 73 “emerging designer” stands.
• 10 runway shows for adults.
• 6 runway shows for kids.
*January 2011

34 Negocios
infographic oldemar
Mexico Clothing the World
Mexican Textile Industry Exports (Millions of USD)
10,958.87
2000
10,435.19
2001
10,624.44
2002
10,311.36
2003
10,384.22
2004
10,715.94
2005
10,609.39
2006
10,144.51
2007
9,947.65
2008
7,745.92
2009
9,336.70
2010
4,263.77
2011*
66%
North America
30.2%
Latin America
Mexican
Textile Industry
Export
Destinations
3.8%
Asia and
Europe
*From January to May
Source: Banco de Información Económica, INEGI / Mexican Textile Industry Chamber.

Mexico’s Partner Grupo kaltex
Photo archive
Textile
Success
Grupo Kaltex has been growing steadily for 86 years. After starting
out as a clothes’ distributor, it is now a full-service company that
includes producing cloths, making clothes and packaging the final
product.
by karla garduño
Grupo Kaltex is like a haute
couture garment, meticulously
tailored and adaptable to
appeal to any client –always
upholding its high standard
of quality.
There are various strands to the success
of this textile company founded 86 years
ago but mainly it has been due its ability to
understand clients and their specific needs,
says Humberto Flores, commercial director
of Grupo Kaltex.
“As we’ve become a large industrial company
and gained a presence throughout the
Americas to reach our sales and growth targets,
the most important thing is to understand
the needs of each client and market

36 Negocios photos courtesy of grupo kaltex
Grupo Kaltex describes itself as a vertical
company. The company produces all kinds
of cloths: cottons such as denim, corduroy,
gabardine, polyester cloths and nylon and
mixes to satisfy the demand of the market
–not only for making clothes but also for
the manufacture of linens, uniforms and
accessories.
segment in which we operate. As we develop
an understanding of the client, we can
create a product that is suitable for those
particular markets and client segments. We
need to combine the product development
elements, the understanding of the client
and service for each region – that is what
has helped us achieve our growth and hit
our targets,” explains Flores.
Since the 1980s, the company that
started out as a textile distributor began to
diversify its production. It now has Kaltex
Fibers, focused on manufacturing acrylic
fibers, Kaltex Home, producing textiles for
the home, and Kaltex Apparel, which offers
a full service including everything from the
design to the manufacture of textiles, fashion
design and clothes’ making, right down
to the finishing touches and even the packaging
of the garments.
With this wide-reaching client service
structure, Kaltex has become one of Mexico’s
largest textile exporters –it exports up
to 50% of its production– and one of the
most prestigious in the domestic market.
Self-supply has been one of its advantages,
especially in the case of acrylic, a fiber
that is not produced on a large scale in
the world, and therefore Kaltex decided to
become Mexico’s sole acrylic producer and
one of just four or five that exist globally.
Like a swan, Kaltex has not only flown
safely over the financial crises –which left
giant textile companies destroyed in their
wake– but it has also become stronger as a
result of them. It also handles the day-to-day
problems facing the industry, such as volatile
raw material prices, competition from
countries such as China and the informal
economy, in a very successful way.
When asked about the company’s strategy
in the face of the crises, the commercial director
of Kaltex replies that there is no simple
solution.
“Through innovation and new products.
The market spectrum, segmentation and
customization that exists in developed markets
has helped us compete in each spectrum
of these segments and forced us to scale our
operations for the most fashionable segments,
with greatest added value. If you want
to compete with a basic product, on a price
basis, you’re going to be at a clear disadvantage
compared to low-cost manufacturing
countries such as China, Pakistan or India.
It’s important to develop a product, innovate,
create fashionable goods, create added value
–and that’s how we’re positioning ourselves,”
says Flores.
With 12 plants for spinning, weaving and
finishing, as well as laboratories in Querétaro,
Hidalgo and Estado de México, Grupo
Kaltex has nearly 12,000 employees on its
payroll.
An Expanding Company
While thousands of Mexican companies
were battling the global financial recession
of 2008 and 2009, Kaltex announced its
intention to expand to South America and
acquire one of Colombia’s leading textile
companies, Coltejer.
Coltejer, in business for over 100 years
in Colombia, was mired in a crisis when the
founding family of Kaltex acquired a controlling
interest in it – and they now own
65% of its shares.
Kaltex’ method of applying its skill at
achieving successful results was easy to see
in Coltejer’s 2009 annual report. Despite
having posted a net loss of 28.37 million usd,
that figure was far below the loss of 165.07
million usd recorded in 2008.
In 2010, the company turned around the
operational loss of 2009 and achieved a net
profit.
Grupo Kaltex describes itself as a vertical
company. The company produces all kinds of
cloths: cottons such as denim, corduroy, gabardine,
polyester and nylon and mixes to satisfy
the demand of the market –not only for
making clothes but also for the manufacture
of linens, uniforms and accessories.
With Kaltex Apparel, the group launched
an ambitious company that requires greater
infrastructure and control. That process
has involved a team of designers, the latest
equipment for pattern making and cloth cutting,
tailoring plants, laundries for processes
such as stone washing, stone bleaching and
distressing, among others. The quality of the
laundries and finishes are also certified with
ISO 9000.
Export Strength
Kaltex began exporting to the US in 1986.
Currently, half of their production is distributed
across various markets including the
US, Colombia, Nicaragua, China, Honduras,
Chile, Ecuador, Peru, Bolivia, Guatemala,
Canada, Venezuela and Paraguay.

Mexico’s Partner Grupo kaltex
The company’s commercial director explains
that denim is their star export product,
both as a cloth and as a tailored product.
“The concept of pure assembly or maquila
that existed in the 1970s and 1980s has evolved.
Many of our clients are either vertically integrated
or use services of companies that have
transformed from being maquiladoras to providers
of a full-service. One full-service clothes’
making provider can choose the cloths with
which to meet the client’s requests. It can suggest
designs for jeans and finishes for those
jeans, offer additional services in the distribution,
just-in-time deliveries, revise inventories
and take decisions on how to schedule its
production so that the market is never undersupplied.
It’s a much more complex maquila
process, one that is much more valuable than
that experienced in the past,” explains Flores.
Alternative Options
Grupo Kaltex’ strategy goes beyond foreign
trade, manufacturing quality, sufficient capacity
of its production chain and the effectiveness of its
business. It is also focusing on design and ecology.
Kaltex is proud of its environmental policy
at its plants ever since it set up its Environmental
Committee in 1998. In San Juan del Río, in
the state of Querétaro, the company built an
entirely computerized water treatment plant
to recycle treated waters, to provide water
to the plant, for production processes where
possible, and for the watering of green areas.
It has also implemented programs to recover
glue and soda used in its processes, in
order to prevent these substances from entering
the drainage systems.
Also as a part of its ecological work, the
company is seeking to substitute chemicals
and colorings which do not comply with environmental
regulations.
As part of its work on design, since 2009,
with the Designer’s by Kaltex Program, the company
has been endeavoring to support and promote
talented young Mexican fashion designers.
Designers such as Malafacha, Mancandy,
Ocho Store and Daniel Andrade have participated
in this program which produces
haute couture garments and clothes for the
high street. Its designs have appeared at
events such as Intermoda, one of the largest
events in the Mexican fashion calendar that
Self-supply has been one of its
advantages, especially in the
case of acrylic, a fiber that is
not produced on a large scale
in the world, and therefore
Kaltex decided to become
Mexico’s sole acrylic producer
and one of just four or five
that exist globally.
takes place each year in the city of Guadalajara,
in the western state of Jalisco.
“Kaltex believes strongly in supporting
new designers, creating a business model
that helps them to set up a company with
an established brand and to demonstrate
to other countries that Mexico has first-rate
textiles and designers,” says Flores. n
www.kaltex.com.mx

38 Negocios photos Courtesy of Santiago Textil
Covering
the World in
Cashmere and
Wool
Santiago Textil is one of Mexico’s
oldest textile companies. Founded
over 100 years ago, the company is still
a leader in the domestic market and a
major international player.
by antonio vázquez

Mexico’s Partner Santiago Textil
Santiago Textil is one of
the few textile companies
to have survived in the
global marketplace. In the
US and Canada, for example,
almost all of the textile
manufacturers have been
closing down, likewise in
South America and Europe.
In Mexico, just a handful of
specialist woolen textile
producers have successfully
adapted to the shifting global
sands.
Located in Mexico’s capital city,
Santiago Textil has focused on
manufacturing cashmere, a wool
used to tailor men’s suits, for over
100 years.
In 1888, the founders of Santiago Textil
identified the need to set up a company that
would supply high-quality wool textiles to
an increasingly refined Mexican society that
needed better fibers for its clothing.
“Despite a series of difficulties –the Mexican
Revolution, Mexico’s sudden opening up
to foreign markets, various financial crises and
global recessions– ever since the company was
founded it has uninterruptedly supplied the
Mexican market with the best cashmere and
woolen material and has exported its goods
since the 1980s,” says Martín Urrutia, owner of
Santiago Textil.
The company’s continued success, according
to Urrutia, comes down to over a century
of good management. “We have seen many textile
factories, both here in Mexico and abroad,
disappear,” he says.
“Textile production has historically moved
to wherever labor and costs of production
are cheapest and today that means India and
China. However, companies remaining a reasonable
size and having the flexibility to adapt
to their clients’ specific needs have been able to
survive,” he continues.
Santiago Textil’s competitive advantage lies in
its cost efficiency, its innovation, its improvement
of product quality and, above all, its long process
of adaptation to meet its clients’ needs. “We’re a
company that seeks out niche markets, where
profit margins are highest,” explains Urrutia.
For over 100 years, this Mexican company
has exported to five continents but its main
markets are North and Central America. Martín
Urrutia says that the demands of markets,
albeit different, do have a common denominator:
competitiveness in price and quality. The
speed in response times to meet buyers’ needs
and supplying orders accurately are other key
factors for international clients which are also
priorities for Santiago Textil.
“Clients don’t want to buy problems, so if
you become a reliable provider, your chances
of success and survival are much greater,” says
Urrutia.
Santiago Textil is one of the few textile companies
to have survived in the global marketplace.
In the US and Canada, for example, almost
all of the textile manufacturers have been
closing down, likewise in South America and
Europe. In Mexico, just a handful of specialist
woolen textile producers have successfully
adapted to the shifting global sands. “I like to
think that it’s because clothes makers perceive
Santiago Textil as a reliable, competitive and innovative
supplier,” says Urrutia.
The company’s products can be found
in menswear product stores practically the
world over.
But it has diversified its range of textiles to
meet the needs of the fashion markets. Santiago
Textil has explored various other areas: ladies’
fashion, uniforms, felts for billiards tables
and casinos, bedspreads, blankets and upholsteries,
among others.
“As a global exporter, our quality control
is first class. For instance, with our felts for
billiard tables, Santiago Textil has higher standards
of quality that others seek to emulate,”
Urrutia points out.
On a daily basis, Santiago Textil embarks on
new developments to meet clients’ demands.
The caliber of the thread, the production of its
weaves, the different qualities of its wool and
its blends with synthetic fibers all combine to
create hundreds of products for the markets.
Martín Urrutia explains that some specialists
have defined his company’s achievement as
combining a bespoke production with the latest
technology.
During this time, when the global crisis has
devastated some economies, companies survive
by keeping costs under control, looking
after their workers and remaining faithful to
what makes them special to their clients.
“After the storm, only the strongest survive.
We’re sure that we’ll be among the survivors
[…] and then we’ll be looking to plan new areas
of growth and to penetrate new markets,”
concludes Martín Urrutia. n
www.santiagotextil.com

40 Negocios photo Archive
Compañía
Mexicana de Trajes:
Fitting Out the
Businessmen
Founded 50 years ago, this 100% Mexican company, dedicated to the production and
merchandising of menswear, has succeeded in the international markets thanks
to its quality, service and price.
by maría eugenia sevilla

Mexico’s Partner Compañía Mexicana de Trajes
Menswear specialists Compañía
Mexicana de Trajes
and Confecciones MAK
have a longstanding presence
on the Mexican and
international markets, where the duo has forged
a prestigious reputation based on the quality of
their products, excellent service and reasonable
prices.
With some 600 employees on its payroll,
Compañía Mexicana de Trajes has been acknowledged
by Mexico’s National Bank of Foreign
Trade (BANCOMEXT, for its acronym in
Spanish) as a high-volume exporter (Empresa
Altamente Exportadora or ALTEX). The company
is also certified under the Mexican Clothing
Industry Chamber’s Quality Assurance System
for Garment Production Processes.
“Compañía Mexicana de Trajes was founded
almost 50 years ago and is now one of Mexico’s
leading makers and retailers of men’s suits,
jackets and pants,” says Operations Director
Salomón Sarfati.
Originally founded on December 4, 1962,
it wasn’t until 1990 that the company was acquired
by its current owners, who boast wide
experience in the menswear department and
who also happen to be the founding partners of
Confecciones MAK, a company specializing in
pants that dates back to 1975.
Compañía Mexicana de Trajes has built up
trusting relationships with its clients, who, in the
words of Sarfati, “know they’re not likely to hear
a ‘no’ from us.”
Renowned for working closely with clients
to find the ideal product for their final consumer,
Sarfati is convinced that: “Aside from
quality and reasonable prices, it is in this standard
of personalized service that the company’s
strength lies.”
Together, Compañía Mexicana de Trajes and
Confecciones MAK have a portfolio of 550-plus
clients in Mexico. Their products, which feature
brands like Perry Ellis, Halston, Polo and Ted
Lapidus, to name just a few, can be found at over
2,400 points of sale, including most major department
stores in Mexico.
“We have all kinds of clients in Mexico, from
supermarkets to department stores like Liverpool,
Sears, El Palacio de Hierro and specialized
stores like Saks,” says Sarfati.
In addition to six stores in strategic locations
throughout Mexico City, the company also has
agreements in place with its corporate clients,
whose employees can buy designer brands
straight from the factory and finance their purchases
via a special voucher system.
Since 1996, Compañía Mexicana de Trajes
and Confecciones MAK have been exporting
to North America and the Caribbean as part of
an aggressive international expansion plan that
offers major distributors cut-make (CM), cutmake-trim
(CMT) and full-package services.
Clients such as George Weintraub Sons, HMX,
Ballin, Bremen and Berle have already signed
up for these cross-border services.
Renowned for working
closely with clients to find
the ideal product for their
final consumer, Sarfati is
convinced that: “Aside from
quality and reasonable
prices, it is in this standard of
personalized service that the
company’s strength lies.”
In the process, Compañía Mexicana de
Trajes and Confecciones MAK have been certified
by a long list of companies, including Levis,
Federated and Jos. A. Banks.
The group has two factories, one in Mexico
City and a second one in Zinacantepec, Estado
de México, both equipped with cutting-edge
machinery, like the two-shell suit-assembly
system and a modular, rapid-response one for
making pants.
It is machinery like that which enables the
company to churn out some 850 suits and 2,000
pairs of pants a day, 70% of which are sold on
the domestic market, with the remaining 30%
being exported.
“Initially,” says Sarfati, “products intended
for the Mexican market and those produced
for export to the US were very different. But
over the years, they have become increasingly
similar to the point where they are now virtually
identical.”
Smart Fashion for
Savvy Entrepreneurs
Compañía Mexicana de Trajes boasts its own
hi-tech designer line. Created with the businessman
who spends his days on the road in mind,
these garments incorporate innovative waterresistant,
natural stretch and anti-wrinkle fabrics.
“Our catalogue features our basic, restockable
product line, in addition to our annual
Spring-Summer and Fall-Winter collections,”
says Sarfati.
“Depending on what’s fashionable, our
Spring-Summer collection generally focuses on
light to medium color palettes and lightweight,
versatile fabrics like pure linen or cotton and
linen blends, and tropical wools, which are ideal
for city dwellers. In the Fall-Winter season, our
catalogue veers more toward wool serge suits
and classic raincoats, with modern variations
in cut and storm flaps in keeping with the latest
European trends in texture, finish and silhouette
design,” he continues.
A large stock of basic suits, pants and blazers
in the most popular fabrics and colors reveals
in-depth knowledge of consumer purchasing
habits and allows Compañía Mexicana de
Trajes to offer immediate delivery on plain and
fancy 100% wool, super 100s imported from
Italy and 100% Mexican wool fabrics, among
others. The company caters to a large market
segment with a permanent inventory of casual
pants in wool polyester, polyester viscose and
cotton, while a choice of models and fabrics attracts
a more diverse clientele. This capacity to
restock on-demand translates into unbeatable
services in tailored menswear products.
The “smart suit” recently launched by Compañía
Mexicana de Trajes was an immediate
hit, shooting to the top of its category in terms of
sales. Comfortable, versatile and functional, that
product is for the gentleman who strives to look
impeccably turned out at all times.
Corporate, staff and school uniforms are another
product line. These come in a wide range
of designs, from the very formal to more casual,
modern looks.
“We plan to continue increasing production
capacity because it isn’t currently sufficient to
cover sales,” reveals Sarfati, who believes now is
the perfect moment to expand.
“Right now the textile and clothing industry
is at a good place because many of the foreign clients
who left Mexico at one point are returning.
They’ve realized it’s not easy to find the service,
price and quality we offer here,” he concludes. n
www.mextrajes.com

42 Negocios Photo archive
Denim
Empire
For over 50 years, Siete Leguas has positioned itself as Mexico’s leading denim producer. The company
has made the most of the country’s advantages and opportunities to become a major exporter of this
textile.
by antonio vázquez

Mexico’s Partner Siete leguas
In more than five decades, Siete Leguas
has built an empire in the denim industry.
The company –founded in 1959 in
the city of Lerdo in Mexico’s northern
state of Durango– has become a key
supplier for international brands such as Levi’s,
GAP, American Eagle, Polo Ralph Lauren,
Dickies and Vans, to name just a few.
At the end of the 1950s, Siete Leguas began
operations as a small company that produced
clothes sold by its owners. By the mid-1980s,
the domestic economy required diversification
and the company started to export its products.
That marked the start of its growth due to the
reinvestment of its profits, effective marketing
and an export focus.
In 1994, the North American Free Trade
Agreement (NAFTA) gave Siete Leguas the opportunity
to make a step-change in its export
business. During that period, Siete Leguas was
producing up to 350,000 garments a week as a
maquiladora.
Juan José Medina, the company’s vice
president of sales and design, says that over
time it shifted to another model: the full service
package. That involved the company buying
the raw materials, creating the design patterns
and selling the finished articles to the client.
Whereas the company used to charge 6 usd for
assembling each manufactured garment, it was
now charging between 12 and 48 usd per unit.
Today, Siete Leguas produces around 200,000
denim jeans a week and 80,000 trousers made
of gabardine.
“Around 80% of our exports go to the US.
The rest are shipped to Canada, China, Russia,
Dubai, Argentina, Costa Rica, Colombia, Brazil,
Chile and parts of Europe,” explains Medina.
The company currently has over 3,000
employees. It offers outsourced full-service
packages and also produces brand products.
Its industrial complex comprises 14 buildings
where it can carry out the entire production
process in a single place: design, cut, tailor,
wash, sandblast, press, package and shipment
of its product.
Medina attributes the success of Siete Leguas
to the company’s mission statement. “That
mission focused not just on one but on several
factors that have differentiated it from its rivals
in other parts of the world,” he says.
Siete Leguas has become a key
supplier for international
brands such as Levi’s, GAP,
American Eagle, Polo Ralph
Lauren, Dickies and Vans, to
name just a few. Today, Siete
Leguas produces around
200,000 denim jeans a week
and 80,000 trousers made of
gabardine.
Siete Leguas has set its targets on the following
key areas: product design and development,
building a direct relationship with international
brands and retail stores at the end of the production
chain, high-quality garments, on-time
product delivery and competitive pricing.
According to Medina, the factory’s dynamic
approach and five decades in the business has
given it expertise in design and development.
Each year, Siete Leguas sends a group of its top
designers to visit international fairs, festivals
and conventions in cities like Tokyo, Amsterdam,
New York, Los Angeles, Barcelona and
Berlin in order to immerse themselves in the
latest trends in denim products.
“One of Siete Leguas’ advantages is that
it went from full service to full value, which
means that the Siete Leguas plant is now the
right hand of the parent company. From that
point on, Siete Leguas has been the right hand
of our clients’ designers,” points out Medina.
Delivery and price are other factors that
give Siete Leguas that little extra something.
“Siete Leguas focused strongly on distance.
Generally, a product from Asia takes between
20 to 32 weeks to reach retail outlets. That time
represents the period from the original concept
to delivery at the store. In terms of time,
Siete Leguas takes just eight weeks from the client’s
approval of the concept to delivery at the
store. That means that the product, when it arrives,
is still fashionable and therefore it’s going
to sell,” explains Juan José Medina.
Medina gives the following lowdown on customs’
tariffs: “While in Asia products continue
paying 16.8% in US import taxes, since NAFTA
entered into force, Mexico pays zero-rate tax.
So, even though the manufacturing costs in Asia
are lower, after taxes the product ends up being
more expensive than the product which Siete
Leguas delivers to the same clients.”
That is explained by the fact that, added to
the same “competitive advantages,” as Medina
describes them, there is also the advantage
that the production plants are just eight hours
by road from Laredo and just 15 hours from El
Paso, Texas, two major customs entry points in
the US.
Furthermore, the company has undertaken
environmental commitments. Its factory has its
own wastewater treatment plant, it recycles a
large proportion of the water it uses and promotes
a culture of respect and care for natural
resources. It has also chosen to comply with labor
laws in respect to its almost 3,000 employees
and its production processes have been certified
by international organizations. That has
all given its clients a high level of trust in Siete
Leguas, mainly American Eagle, a company
that has awarded it a contract for manufacturing
its products solely for Mexico.
“We’re going to continue building up the company,
focusing on its specialization and ensuring it
remains Mexico’s leading denim manufacturer.
Then we’re going global,” concludes Medina. n
www.sieteleguas.com.mx

44 Negocios Photo Archive
The Mexican
Blue-Jean
Revolution
Compañía Industrial de Parras is Mexico’s largest
denim producer and one of the first in the region,
dating back to the 19th century. Founded by the
revolutionary Madero family, the company has the
capacity to produce 70 million linear meters of denim a
year, enough to make 1.7 million pairs of jeans a month.
by gustavo aréchiga

Mexico’s Partner Compañía Industrial de parras
Francisco I. Madero is a Mexican hero par excellence,
religiously occupying his place alongside
other legendary figures in the country’s
hall of revolutionary fame.
But his celebrity doesn’t end there. It was
his grandfather, Evaristo Madero from Coahuila,
who purchased La Estrella back in 1870
–the same textile factory where Compañía
Industrial de Parras manufactures denim and
gabardine, today.
It was the year 1873 and America was in
the throes of gold fever. Some 300,000 miners
and small-time prospectors made their way to
California in the hope of striking it rich. Oscar
Levi Strauss seized the opportunity and came
up with a pair of pants made from a resistant,
washable fabric. And so denim was invented,
a fabric that was to be central to the success of
the Mexican company that was to evolve into
Parras.
On February 17, 1870, Madero & Co., a
company formed by Evaristo Madero and
Lorenzo González Treviño, purchased La Estrella
in Parras, Coahuila. Don Evaristo, the
grandfather of Francisco I. Madero, knew full
well the textile factory would only be profitable
if they invested in more modern machinery.
And so they did.
By 1899, the factory had several areas where
the denim was prepared, woven, stitched, dyed
and bleached, as well as two small boiler rooms.
“The company was one of the main textile
manufacturers that ushered in Mexico’s
industrial era. In the 1960s and 1970s, demand
for denim grew exponentially and it
began producing stretch fabrics in different
finishes. In the 1990s, consumers began to
demand more variety, from basic denim to
other fabrics in a range of finishes and colors.
That was when two factories were bought,
one in Puebla and a second one in Torreón,”
says Grissel Ramírez, the company’s marketing
director.
In 1993, Parras partnered up with Cone
Mills Corporation, the world’s largest denim
manufacturer, and invested 22 million usd in
the construction and operation of the Parras-
Cone de México factory, also in Parras.
Madero’s rickety old machinery is a relic
of the past: the Parras of today boasts stateof-the-art
technology and an annual installed
capacity of 70 million linear meters. The company
launches two collections a year, fruit of
the market research conducted by its team of
fashion designers.
In December 2010, Parras
launched the Terra
Collection, featuring fabrics
dyed with 100% natural
pigments obtained from
desert and tropical plants,
insects, nuts and other nonpolluting
sources.
“We combine fibers, mix new dyes and
create new finishes. The company’s executives
are constantly traveling to other countries
to get a feel for the market and check out
stores. That’s how we begin to develop new
types of denim,” says Ramírez.
Combining traditional denim with bamboo,
alpaca and wool-based textiles, Parras
has come up with high-added-value blends
that look great and retail even better. Fashion
designers appreciate their versatility, as do
some of the world’s top selling brands.
By analyzing trends like that, Parras is able
to produce the type of fabrics required by the
large foreign brands.
“Every year, we launch collections in Paris
to reach out to brands in Europe, the US, Mexico
and South America, namely Argentina,
Chile and Colombia, among other countries.
Our present goal is to target Bolivia, Peru, Brazil,
Paraguay and Ecuador,” says Ramírez.
Fabricating a Better World
Four years ago, Parras changed the climate of
the industry by creating fabrics made of remnants
and a percentage of recycled cotton fibers,
marking the company’s incursion into the
world of environmentally friendly products.
Such was the impact of these fabrics that
in December 2010, Parras launched the Terra
Collection, featuring fabrics dyed with 100%
natural pigments obtained from desert and
tropical plants, insects, nuts and other nonpolluting
sources.
“That was the work of our Textile Innovation
and Technology Center, an area that conducts
research on fibers and materials. A group
of field researchers from the center visited indigenous
communities in Mexico to see how
they dyed their clothes and we applied these
techniques in creating this collection. What
we’re looking to do is close the eco-circle and
produce our own environmentally friendly inputs,
such as natural dyes made from insects,
cactus and other desert plants,” says Ramírez.
But going green isn’t the only thing Parras
has got right. Aware that consumers are
tired of the same old same old, the company’s
design executives are getting creative. Textile
companies are producing more innovative
products to ensure that the brands of jeans
that buy their fabrics are the most original on
the market.
“We’re trying to address changes in consumer
patterns and tastes in the wake of the
global crisis by being more creative. Don’t forget
the textile industry has had it tough due to
hikes in cotton prices, which have skyrocketed
as much as 400% in some cases. That is why
we’re blending cotton with lighter, man-made
fabrics of the highest quality, to keep our prices
competitive so the final consumer isn’t affected,”
says Ramírez.
Parras is upgrading its Coahuila plant and
plans to take its textile tradition to European
countries where it doesn’t currently have a
presence, opening facilities to meet product
demand and cut down on transportation
time, particularly in Spain and Germany. n
www.parras.com

46 Negocios Photo Courtesy of grupo industrial Miro
Grupo
Industrial Miro:
Textiles that
are Top of Their
Class
With more than 50 years of experience in the textile industry, the
Mexican Grupo Industrial Miro manufactures fabrics for some of the
world’s most prestigious clothing brands. Excellent customer service,
fast delivery, innovative marketing strategies, the ability to adapt to
market conditions and stringent quality control, are some of Miro’s
strengths.
by maría eugenia sevilla
With an impressive portfolio
of well known
international brands
such as Adidas, Nike,
Levis and Zara, Grupo
Industrial Miro is practically an institution on the
Mexican textile market, manufacturing everything
from yarn to textiles and printed fabrics.
Grupo Industrial Miro exports more t-shirts
than any other company in the sector and is the
country’s leading manufacturer of LYCRA®
clothing.
The group employs 1,850 people and posted
20% growth this year. Textile production currently
stands at 1,500 tons a month but is expected
to reach 2,000 tons in the short term.
“We feel this is a difficult market but it has
remained stable,” says Angélica Castro, the
group’s marketing manager. It is this stability,
combined with the trust of its Mexican clients
–stores like El Palacio de Hierro, Walmart, Liverpool,
Soriana and Coppel– that has enabled
the company to achieve these growth rates.
The firm specializes in chiffon but has a catalogue
of over 2,500 textiles, including interlock,
rib and knitted fabrics, terry cloth, French Terry
and Jacquard. It also manufactures products in
100% organic and natural cotton and synthetic
blends like polyester, spandex, rayon, viscose
and nylon in a variety of compositions and special
finishes.
Known for its open fabric finishes, Miro uses
hi-tech machinery to control the weight, width
and shrinkage of its tubular textiles and implements
best industry practices to produce high
quality but competitively priced printed fabrics.
And if they can’t find a fabric to fit, clients
can order one tailor-made to meet their needs.

Mexico’s Partner Grupo Industrial Miro
Known for its open fabric
finishes, Miro uses hi-tech
machinery to control the
weight, width and shrinkage
of its tubular textiles and
implements best industry
practices to produce high
quality but competitively
priced printed fabrics.
The process takes just one week, conferring on
Miro the industry record for new product developments,
which accounted for 40% of sales
in 2009. Another plus is the option to secure
product exclusivity by meeting a set of minimum
requirements.
Hi-Tech Textiles
Grupo Industrial Miro uses hi-tech machinery
to manufacture products for some of the
world’s most prestigious brands.
It boasts one of the most complete physical
testing labs for yarns in the country and has
three factories that produce mainly 100% cotton
open-end, carded and combed yarn and
slub yarn in 100% combed cotton in weights
ranging from 20/1 to 30/1.
All knitwear is designed using software
that ensures compliance with the client’s
requirements and consistency in the final
product.
Another lab, the most modern of its kind in
Mexico, tests dyes and finishes and controls color
combinations to meet client specifications.
The final products are then shipped all over
Mexico through the company’s five distributors.
Spinning More Than a Yarn
Named after its founder, Miro Zaga, the company
began life in 1955 as a combed cotton
yarn manufacturer.
The clothes manufacturing side of the business
took off in 1983, when the company signed
a master license agreement with Ocean Pacific,
one of the major international t-shirt brands
at the time. Such was its acceptance that it became
the benchmark brand in Mexico. Miro
subsequently incorporated the experience it
had gained in the design and manufacturing of
fashion apparel into its textile processes, consolidating
its position as the leading manufacturer
of knit cotton and blend fabrics on the domestic
market.
With the coming into effect of NAFTA in
1994, the group looked abroad, investing in stateof-the-art
technology and training its employees
in a new commercial approach that was to establish
it as the country’s top t-shirt exporter.
Miro currently exports 40% of its output.
“Jersey and cotton-spandex are our most popular
export products,” says Castro, adding that
the group’s foreign clients include prestigious
brands like JC Penney, Adidas, Express, Levis
and Nordstrom.
Excellent customer service, fast delivery,
innovative marketing strategies, the ability to
adapt to market conditions and stringent quality
control: it is the sum of these factors, says Castro,
that sets the company apart from others in
the sector and keeps it at the top of its game.
Of these factors, she believes quick-term delivery
is one of the company’s stronger points. As
a totally vertical company, Miro has the capacity
and means to deliver merchandise within a very
short timeframe, while proximity to the countries
it exports to further facilitates matters.
Being so close to some of the world’s largest
markets makes it easy to deliver directly and
quickly with very low logistical costs, making
Miro a highly competitive company.
In addition to the assurance that comes with
ISO 9001 certification, which guarantees the
standard of its manufacturing processes, Miro’s
clients can rest easy in the knowledge that the
company has the installed capacity to handle
orders of any size, no matter how large.
Not only that, but also the group is spinning
heads at major international fashion fairs.
“We participate in fairs in countries like the US,
France, Spain, Colombia and Brazil because
that helps position us on the international market
as a leading knitwear brand,” says Castro.
That is where Miro gets inspiration for its
high-fashion garments. “We have a marketing department
that advises clients on market trends in
fabrics, composition, construction, silhouette and
color, among other aspects,” she says.
The package comes complete with fully
personalized customer and follow-up services,
from delivery of the initial sample and advice
on choosing the right product for its intended
market to confirmation of purchase orders
and delivery right to the client’s door. n
www.grupomiro.com

48 Negocios Infographic oldemar
TOURISM:
A Strategic Sector
Tourism Revenue
Millions of USD (2011 data from January to March)
Foreign tourists Border travelers Cruise visitors
Negocios figures
5,526.33 6,178.79 8,294.21 11,803.41 11,871.85 3,326.18
1990
1995
2000
2005
2010
2011
3,400.88
4,051.04
5,816.17
8,502.40
9,357.03
2,710.75
2,066.06
2,020.35
2,276.95
2,848.40
1,970.18
453.68
59.39
107.40
201.09
452.61
544.64
161.74
Mexico: a Frequently Visited Country
Millions of people (2011 data from January to March)
Foreign tourists Border travelers Cruise visitors
105.67
103.15
82.10
85.45
79.90
14.01 3.51 1.77
74.82
75.972
91.62
83.91
60.84
19.29
6.39
7.78
10.59
12.53
12.77
1990
0.89
1995
1.70
2000
3.47
2005
6.71
6.29
2010 2011
Source: Banco de Información Económica, INEGI.

The lifestyle
T h e C o m p l et e G u i d e of t h e M ex i c a n Way of L i fe .
The Guelaguetza:
Expression of
Mexican Essence
p. 68
Mexico
World’s
Heritage
p. 54
photo jeff stvan

50 Negocios i The Lifestyle
photos Archive
Mexico as
a Second
Home
For decades, Mexico has been the answer for many US citizens, Canadians and
Europeans when they’ve needed to choose a second home. Today, the possibilities
offered by the country are better and more varied than ever.
By Mónica López
Everyone dreams of a second home,
from young couples and families
who wish to have a permanent
holiday retreat to baby boomers
looking for a retirement haven.
Choosing the location of the dream involves
multiple factors, such as the value of the investment
to be made, accessibility, safety and,
ultimately, whether it will be a place where
you can spend your time comfortably, with
all the necessary services, surrounded by likeminded
people.
The answer for many US citizens, Canadians
and Europeans, for several decades, has been
Mexico. Today, the possibilities offered by the
country are better and more varied than ever.
Some of the reasons are obvious. The
weather is a major pull factor for both US
citizens and Canadians who look for warmer
latitudes during winter. These “snowbirds”,
as they are affectionately known, spend four
to six months of the year in Mexico, where
they never have to put up with a blizzard or
de-ice a car.
By spending the rest of the year in their
home countries, they can stay in touch with
their families, handle business affairs and
maintain their resident status. Often at times,
they rent out their Mexican homes while they
are away, which is a great way to cover maintenance-related
expenses and perhaps even
make a profit.
Proximity is also important. US citizens
from border states like California, Arizona and
Texas can easily drive into Mexico on any of
the major super highways that have been built
as a result of the North American Free Trade
Agreement (NAFTA). There are hundreds of
weekly, direct flights from all major US and Canadian
cities into Mexico’s many international
airports. Also as a result of NAFTA, US citizens
and Canadians will find that familiar food, beverages
and beauty products are widely available
in Mexico. Services like satellite and cable
TV, high speed Internet access and Englishlanguage
newspapers and magazines are also
very easy to find.
Real estate investment opportunities in Mexico
are more available than in its northern neighbors,
with beautiful areas that have only recently
begun to develop into residential communities.
Of course, there are high-end developments that
ooze luxury in many areas of the country but
there are also intact, simple towns where land is
still very affordable. Another incentive to look at
Mexico is the much lower property taxes compared
to those in the US and Canada.
Finally, when citizens from other countries
come to Mexico they will find friendly people
who welcome foreigners seeking a peaceful
lifestyle. Large communities of expats around
the country will not only provide newcomers
with useful tips and companionship, but also
with a network of English speaking associations
and schools that will make new arrivals
feel at home.

destination Mexico as a second home
The Southern Pacific Coast:
Nayarit, Jalisco and Colima.
San Blas
A small fishing town of about 12,000 people,
this is the ideal setting for those desiring a
natural, trouble free lifestyle. There are plenty
of homes on sale in the 100,000-200,000 usd
range, making this a low-priced option. No
major resorts operate in the area, so peace and
quiet are guaranteed.
Puerto Vallarta and Bucerías
Just 10 miles north of Puerto Vallarta is a small
beachside town with a large American and Canadian
community, Bucerías. Single homes
and villas are available in the 150,000-700,000
usd range. For those who prefer to be at the
center of activity, Puerto Vallarta itself offers
several new developments. Because land is
harder to come by in this city, most of them
are condominiums. The most talked about is
ICON Vallarta, currently under construction
and designed by Philippe Starck. It will have
343 units with prices ranging from 200,000
to one million usd. Also worth a mention is the
recently completed Grand Venetian Bay View
Grand, on 20 acres of ocean front property in
the heart of Puerto Vallarta. It has 478 condos
in three towers, as well as 12 villas and 56 lakefront
residences, available from 197,500 to 1.8
million usd.
La Manzanilla
and Manzanillo
La Manzanilla is a small fishing village in the
Bay of Tenacatita, with a population of about
1,000, which nearly doubles in the winter with
American and Canadian snowbirds. Surfing,
fishing and mountain biking are just some of
the many activities available here. Real estate
is inexpensive there, with a trend toward single
homes. In contrast, the port city of Manzanillo
has a large array of both private residences
and condos. Homes in gated communities
like Club Santiago can be found for 250,000-
600,000 usd, while many condos are available
for around 150,000 usd.
Punta Mita
The market turns upward as we head south
toward Punta Mita. Adjacent to a Four Seasons
Resort are the Four Seasons Private Residences,
full-ownership villas with access to the
first class resort and spa, which includes a Jack
Nicklaus Signature golf course. Prices start at
3.6 million usd. Also in Punta Mita is El Banco,
over 120 acres of beach front property being
developed by former Yahoo! CEO Tim Koogle.
The master plan includes a boutique hotel.
Beach villas are already available, and villas
by the lake and park will be rolled out in the
next three years. All are single, full-ownership
homes and prices are in the multimillion dollar
range.

52 Negocios i The Lifestyle
photos Archive
The Baja California
Peninsula and Sonora
villas with prices starting in the mid 200,000
usd. Among the services are an 18 hole Arthur
Hills golf course, a country club, a beach club, a
marina and several plazas.
Loreto
This quaint town of 14,000 people has everything
that could be desired. It is on the beautiful
Sea of Cortés, at driving distance from
California and still relatively unknown to tourists.
The Mexican tourism development office
FONATUR recently invested more than 200
million usd in Loreto, which went to infrastructure
improvements and the construction of
a marina and a golf course. Homes are available
from 130,000 to 865,000 usd and many
buildings are still accessible. The trend here is
towards sustainable development, as exemplified
by Loreto Bay, an 8,000 acre residential
development that will be completed over the
next 15 years. It is projected to have 6,000
homes, ranging in prices from 350,000 to just
under one million usd. Five thousand acres
will be protected as a natural reserve and the
developers are taking every step possible to
minimize impact on the environment. Efficient
building materials, solar powered water heaters
and ecologically sound waste management
are among their many priorities.
La Paz
A short two hour flight from Los Angeles will
get you to this lovely city with a colonial history,
sitting on the edge of the Sea of Cortés. Bayside
or mountain top homes are available for very
reasonable prices, starting at around 150,000
usd. For those looking for a more private community,
Paraíso del Mar offers resort neighborhoods.
These are communities with luxury
Los Cabos
Cabo San Lucas, San José del Cabo and the
area that connects them, known as the Tourist
Corridor, comprise the best known high
end beach destination in Mexico. Crystal clear
beaches, access to both the Sea of Cortés and
the Pacific Ocean and breathtaking desert
scenery make this as appealing a location as
can be.
The most prestigious neighborhood in
Los Cabos is the gated 360-acre community
known as Pedregal and Capella Pedregal is the
most talked about development in this community.
Its 31 residences and 20 “casonas” are
among the area’s most demanded real estate.
Cabo Real Master Plan Community has
a lush golf course and resort, as well as 173
luxury condos that have sold out. In a second
phase, they will make 83 new condos available
from 184,000 to 300,000 usd as well as large
lots from 100,000 to 300,000 usd.
Puerto Peñasco
This perfect paradise in the state of Sonora
provides an excellent opportunity to make an
early investment in a rapidly growing market.
With 70 miles of virgin beaches and only a
five hour drive from Phoenix, it is easy to see
why this is considered the hottest location for
a second home. Laguna Shores is a community
and golf resort offering 1,500 luxury vacation
homes and condos, with prices for single
homes in the 200s to 300s. Laguna del Mar is
a new development set on 896 acres that will
sell over 360 lots and built houses are expected
to go to market between 125,000 and 300,000
usd. Sandy Beach Resorts is a grand development
that includes Casa Blanca Golf Villas and
Esmeralda Resorts. Prices for condos start at
500,000 usd.

destination Mexico as a second home
Inland
Havens
San Miguel de Allende
A Colonial era mining city on the hills of
Guanajuato transformed into a burgeoning
community, in no small part by the estimated
15,000 ex pats who currently live there. Museums,
art schools and galleries line its meandering
cobblestone streets. Around 50% of the
historic downtown homes are already owned
by foreigners but new homes are also on the
market. Artesana Rosewood is the latest venture
by Bald Mountain de México. The complex
will include a boutique luxury hotel and
spa as well as private residences built by local
artisans to fit the town’s style. Pricing is set at
one million to three million usd.
Ajijic
This community of 15,000 people on the shore
of Lake Chapala in Jalisco, a 45 minute drive
from Guadalajara, has become a sort of commune
for American and Canadian retirees. It
has a rich cultural life as well as plenty of dining
and entertaining options. Ex pats are very
active in community affairs. Real estate options
can be found in the 120,000 to 250,000
usd range, but up-market homes can cost up to
500,000 usd. n
Why Mexico
• Beautiful, warm weather.
• Proximity to the US and Canada.
• Availability of familiar services and
products.
• Excellent investment opportunities.
• Lower property taxes.
• Hospitality.

54 Negocios i The Lifestyle
MEXICO
World’s
Heritage
Mexico ranks first in the Americas and eighth
worldwide for custody of 31 sites that have been
recognized by UNESCO for their historical,
cultural and natural relevance to the world; 27 of
them are cultural-historical sites and the other
four are natural sites.

THE LIFESTYLE FEATURE MEXICO, WORLD’S HERITAGE
1.
Prehistoric Caves of Yagul and Mitla in the
Central Valley of Oaxaca.
Year of inscription: 2010.
Location: Oaxaca.
Photo Christopher Holden
This property lies on the northern slopes of the Tlacolula valley in subtropical
central Oaxaca and consists of two pre-Hispanic archaeological complexes
and a series of prehistoric caves and rock shelters. Some of these shelters
provide archaeological and rock art evidence for the progress of nomadic
hunter gatherers to incipient farmers. Ten thousand year old Cucurbitaceae
seeds in one cave, Guilá Naquitz, are considered to be the earliest known
evidence of domesticated plants on the continent, while corn cob fragments
from the same cave are said to be the earliest documented evidence for the
domestication of maize. The cultural landscape of the Prehistoric Caves of
Yagul and Mitla demonstrates the link between man and nature that gave
origin to the domestication of plants in North America, thus allowing the
rise of Mesoamerican civilizations.
2.
Camino Real de Tierra Adentro.
Year of inscription: 2010.
Location: From Mexico City to Texas and
New Mexico, United States.
Camino Real de Tierra Adentro was the Royal Inland Road, also known as
the Silver Route. The inscribed property consists of 55 sites and five existing
World Heritage sites lying along a 1,400 km section of this 2,600 km route
that extends north from Mexico City to Texas and New Mexico, in the US.
The route was actively used as a trade route for 300 years, from the mid
16th to the 19th centuries, mainly for transporting silver extracted from the
mines of Zacatecas, Guanajuato and San Luis Potosí and mercury imported
from Europe. Although it is a route that was motivated and consolidated
by the mining industry, it also fostered the creation of social, cultural and
religious links between Spanish and Amerindian cultures.
Photo Samat Jain
3.
Protective town of San Miguel and the
Sanctuary of Jesús Nazareno de Atotonilco.
Year of inscription: 2008.
Location: Guanajuato.
Photo Christopher Holden
The fortified town, first established in the 16th century to protect the
Royal Route inland, reached its apogee in the 18th century when many
of its outstanding religious and civic buildings were built in the style of
the Mexican Baroque. Some of these buildings are masterpieces of the
style that evolved in the transition from Baroque to neoclassical. Situated
14 km from the town, the Jesuit sanctuary, also dating from the 18th
century, is one of the finest examples of Baroque art and architecture in
what was once called New Spain. It consists of a large church and several
smaller chapels, all decorated with oil paintings by Rodríguez Juárez and
mural paintings by Miguel Antonio Martínez de Pocasangre. Because of
its location, San Miguel de Allende acted as a melting pot where Spaniards,
Creoles and Amerindians exchanged cultural influences while the
Sanctuary of Jesús Nazareno de Atotonilco constitutes an exceptional example
of the exchange between European and Latin American cultures.
Its architecture and interior decoration testify to the influence of Saint
Ignacio de Loyola’s doctrine.

56 Negocios i The Lifestyle
4.
Central University City
Campus of the National
Autonomous University
of Mexico (UNAM).
Year of inscription: 2007.
Location: Mexico City.
Photo P. Briseño
The ensemble of buildings, sports facilities and
open spaces of the Central University City Campus
of the National Autonomous University of
Mexico (UNAM) was built from 1949 to 1952
by more than 60 architects, engineers and artists
who were involved in the project. As a result,
the campus constitutes a unique example
of 20th century modernism integrating urbanism,
architecture, engineering, landscape design
and fine arts with references to local traditions,
especially to Mexico’s pre-Hispanic past.
The ensemble embodies social and cultural
values of universal significance and is one of
the most significant icons of modernity in Latin
America.
Agave Landscape and Ancient Industrial
5. Facilities of Tequila.
Year of inscription: 2006.
Location: Jalisco.
The 34,658 hectares site, between the foothills of the Tequila Volcano
and the deep valley of the Rio Grande River, is part of an expansive landscape
of blue agave, shaped by the culture of the plant used since the 16th
century to produce tequila spirit and for at least 2,000 years to make fermented
drinks and cloth. Within the landscape are working distilleries
reflecting the growth in the international consumption of tequila in the
19th and 20th centuries. Today, the agave culture is seen as part of the national
identity. The area encloses a living, working landscape of blue agave
fields and the urban settlements of Tequila, Arenal, and Amatitán with
large distilleries where the agave “pineapple” is fermented and distilled.
The property is also a testimony to the Teuchitlán cultures that shaped the
Tequila area from 200-900 A.D., notably through the creation of terraces
for agriculture, housing, temples, ceremonial mounds and ball courts.
Photo Archive
Luis Barragán House and Studio.
6. Year of inscription: 2004.
Location: Mexico City.
Photo Omar Bárcena
Built in 1948, the House and Studio of architect Luis Barragán in the suburbs
of Mexico City represents an outstanding example of the architect’s
creative work in the post Second World War period. The concrete building,
totaling 1,161 m2, consists of a ground floor and two upper storeys, as well as
a small private garden. Barragán’s work integrated modern and traditional
artistic and vernacular currents and elements into a new synthesis, which
has been greatly influential.

THE LIFESTYLE FEATURE MEXICO, WORLD’S HERITAGE
Photo Christophe Morisset
7.
Franciscan Missions in the
Sierra Gorda of Querétaro.
Year of inscription: 2003.
Location: Querétaro.
The five Franciscan missions of Sierra Gorda were built during the last
phase of the conversion to Christianity of the interior of Mexico in the mid
18th century and became an important reference for the continuation of
the evangelization of California, Arizona and Texas. The richly decorated
church façades are of special interest as they represent an example of the
joint creative efforts of the missionaries and the indigenous people. The rural
settlements that grew around have retained their vernacular character.
Ancient Maya City
8. of Calakmul.
Year of inscription: 2002.
Location: Campeche.
Calakmul, an important Maya site set deep in
the tropical forest of the Tierras Bajas of southern
Mexico, played a key role in the history of
this region for more than 12 centuries. Its imposing
structures and its characteristic overall
layout are remarkably well preserved and give
a vivid picture of life in an ancient Maya capital.
Photo Archive
Photo Gerardo Barreto
9.
Archaeological
Monuments Zone
of Xochicalco.
Year of inscription: 1999.
Location: Morelos.
Xochicalco is an exceptionally well preserved
example of a fortified political, religious and
commercial center from the troubled period
of 650–900 A.D. that followed the break up of
the great Mesoamerican states such as Teotihuacan,
Monte Albán, Palenque and Tikal.

58 Negocios i The Lifestyle
Photo Gustavo hernández verde
Historic Fortified Town of Campeche.
10. Year of inscription: 1999.
Location: Campeche.
Campeche is a typical example of a harbor town from the Spanish
colonial period in the New World. The historic center has kept its outer
walls and system of fortifications, designed to defend this Caribbean port
against attacks from the sea.
11.
Archaeological Zone of Paquimé, Casas
Grandes (Chihuahua).
Year of inscription: 1998.
Location: Chihuahua.
Paquimé, Casas Grandes, which reached its apogee in the 14th and 15th
centuries, played a key role in trade and cultural contacts between the
Pueblo culture of the southwestern US and northern Mexico and the
more advanced civilizations of Mesoamerica. The extensive remains,
only part of which have been excavated, are clear evidence of the vitality
of a culture that was perfectly adapted to its physical and economic
environment, but which suddenly vanished at the time of the Spanish
Conquest.
Photo José Juan Figueroa
Photo Christian GonzÁlez Verón
12.
Historic Monuments
Zone of Tlacotalpan.
Year of inscription: 1998.
Location: Veracruz.
Tlacotalpan, a Spanish colonial river port on
the Gulf coast of Mexico, was founded in the
mid 16th century. It has preserved its original
urban fabric to a remarkable degree, with
wide streets, colonnaded houses in a profusion
of styles and colors, and many mature trees in
the public open spaces and private gardens.

THE LIFESTYLE FEATURE MEXICO, WORLD’S HERITAGE
Hospicio Cabañas, Guadalajara.
13. Year of inscription: 1997.
Location: Jalisco.
Photo Alejandro Castro
The Hospicio Cabañas was built at the beginning of the 19th century to
provide care and shelter for the disadvantaged – orphans, old people,
the handicapped and chronic invalids. This remarkable complex, which
incorporates several unusual features designed specifically to meet the
needs of its occupants, was unique for its time. It is also notable for its
harmonious relationship between the open and built spaces, the simplicity
of its design and its size. In the early 20th century, the chapel was
decorated with a superb series of murals, now considered to be some of
the masterpieces of Mexican art. They are the work of José Clemente
Orozco, one of the greatest Mexican muralists of the period.
Pre-Hispanic Town
14. of Uxmal.
Year of inscription: 1996.
Location: Yucatán.
The Mayan town of Uxmal, in Yucatán, was
founded c. 700 A.D. and had some 25,000 inhabitants.
The layout of the buildings, which
date from between 700 and 1,000, reveals
knowledge of astronomy. The Pyramid of the
Soothsayer, as the Spaniards called it, dominates
the ceremonial center, which has well
designed buildings decorated with a profusion
of symbolic motifs and sculptures depicting
Chaac, the god of rain. The ceremonial sites
of Uxmal, Kabah, Labna and Sayil are considered
to be the high points of Mayan art and
architecture.
Photo Francesco Muratori
15.
Historic Monuments Zone of Querétaro.
Year of inscription: 1996.
Location: Querétaro.
Photo Archive
The old colonial town of Querétaro is unusual in having retained the
geometric street plan of the Spanish conquerors side by side with the
twisting alleys of the Indian quarters. The Otomí, the Tarasco, the Chichimeca
and the Spanish lived together peacefully in the town, which
is notable for the many ornate civil and religious Baroque monuments
from its golden age in the 17th and 18th centuries.

60 Negocios i The Lifestyle
Photo Enrique López Tamayo
16.
Earliest 16th Century Monasteries on
the Slopes of Popocatépetl .
Year of inscription: 1994 .
Location: Morelos and Puebla.
These 14 monasteries stand on the slopes of Popocatépetl, to the southeast
of Mexico City. They are extremely well preserved and are good examples
of the architectural style adopted by the first missionaries –Franciscans,
Dominicans and Augustinians– in the early 16th century. They also represent
an example of a new architectural concept –where open spaces are of
renewed importance–, which influence is felt throughout the country and
even beyond its borders.
Historic Center
17. of Zacatecas.
Year of inscription: 1993.
Location: Zacatecas.
Founded in 1546 after the discovery of a rich
silver lode, Zacatecas reached the height of
its prosperity in the 16th and 17th centuries.
Built on the steep slopes of a narrow valley, the
town has breathtaking views and there are
many old buildings, both religious and civil.
The cathedral, built between 1730 and 1760,
dominates the center of the town. It is notable
for its harmonious design and the Baroque
profusion of its façades, where European and
indigenous decorative elements are found side
by side.
Photo Paula Soler Moya
18.
Rock Paintings of the
Sierra de San Francisco.
Year of inscription: 1993.
Location: Baja California Sur.
Photo Archive
From c. 100 B.C. to A.D. 1300, the Sierra de San Francisco (in the El Vizcaíno
reserve in Baja California Sur) was home to a people who have now disappeared
but who left one of the most outstanding collections of rock paintings
in the world, remarkably well preserved because of the dry climate and inaccessibility
of the site. Depicting human and animal figures and illustrating
the relationship between humans and their environment, the paintings reveal
a highly sophisticated culture. Their composition and size, as well as the
precision of the outlines and the variety of colors, make this an impressive
testimony to a unique artistic tradition.

THE LIFESTYLE FEATURE MEXICO, WORLD’S HERITAGE
19.
El Tajín, Pre-Hispanic City.
Year of inscription: 1992.
Location: Veracruz.
Photo Estudio de Arquepoética y Visualística prospectiva
Located in the state of Veracruz, El Tajín was at
its height from the early 9th to the early 13th
century. It became the most important Center
in northeast Mesoamerica after the fall of the
Teotihuacan Empire. Its cultural influence extended
all along the Gulf and penetrated into
the Maya region and the high plateaus of central
Mexico. Its architecture, which is unique
in Mesoamerica, is characterized by elaborated
carved reliefs on the columns and frieze.
The “Pyramid of the Niches”, a masterpiece of
ancient Mexican and American architecture,
reveals the astronomical and symbolic significance
of the buildings. El Tajín has survived as
an outstanding example of the grandeur and
importance of the pre-Hispanic cultures of
Mexico.
Historic Center of Morelia.
20. Year of inscription: 1991.
Location: Michoacán.
Built in the 16th century, Morelia is an outstanding example of urban planning
which combines the ideas of the Spanish Renaissance with the Mesoamerican
experience. Well adapted to the slopes of the hill site, its streets still
follow the original layout. More than 200 historic buildings, all in the region’s
characteristic pink stone, reflect the town’s architectural history, revealing
a masterly and eclectic blend of the medieval spirit with Renaissance, Baroque
and Neoclassical elements. Morelia was the birthplace of several important
personalities of independent Mexico and has played a major role in
the country’s history.
Photo Fernando D. Ramírez
21.
Historic Town of Guanajuato
and Adjacent Mines.
Year of inscription: 1988.
Location: Guanajuato.
Photo Magnus Von Koeller
Founded by the Spanish in the early 16th century, Guanajuato became the
world’s leading silverv extraction center in the 18th century. This past can be
seen in its “subterranean streets” and the “Boca del Inferno” (Hell’s Mouth),
a mineshaft that plunges a breathtaking 600 meters. The town’s fine Baroque
and Neoclassical buildings, resulting from the prosperity of the
mines, have influenced buildings throughout central Mexico. The churches
of La Compañía and La Valenciana are considered to be among the most
beautiful examples of Baroque architecture in Central and South America.

62 Negocios i The Lifestyle
22.
Pre-Hispanic City
of Chichén-Itzá.
Year of inscription: 1988.
Location: Yucatán.
Photo archive
This sacred site was one of the greatest Mayan
centers of the Yucatán peninsula. Throughout
its nearly 1,000 year history, different peoples
have left their mark on the city. The Maya and
Toltec vision of the world and the universe
is revealed in their stone monuments and
artistic works. The fusion of Mayan construction
techniques with new elements from
central Mexico make Chichén-Itzá one of the
most important examples of the Mayan-Toltec
civilization in Yucatán. Several buildings have
survived, such as the Warriors’ Temple, El
Castillo and the circular observatory known
as El Caracol.
Historic Center of Mexico City
23. and Xochimilco.
Year of inscription: 1987.
Location: Mexico City.
Photo Courtesy of gobierno del estado de oaxaca
Built in the 16th century by the Spanish on the ruins of Tenochtitlan, the
old Aztec capital, Mexico City is now one of the world’s largest and most
densely populated cities. It has five Aztec temples, the ruins of which
have been identified, a cathedral (the largest on the continent) and some
fine 19th and 20th century public buildings such as the Palacio de Bellas
Artes. Xochimilco lies 28 km south of Mexico City. With its network of
canals and artificial islands, it testifies to the efforts of the Aztec people
to build a habitat in the midst of an unfavorable environment. Its characteristic
urban and rural structures, built since the 16th century and during
the colonial period, have been preserved in an exceptional manner.
24.
Historic Center of Oaxaca and
Archaeological Site of Monte Albán.
Year of inscription: 1987.
Location: Oaxaca.
Inhabited over a period of 1,500 years by a succession of peoples –Olmecs,
Zapotecs and Mixtecs– the terraces, dams, canals, pyramids and
artificial mounds of Monte Albán were literally carved out of the mountain
and are the symbols of a sacred topography. The nearby city of Oaxaca,
which is built on a grid pattern, is a good example of Spanish colonial
town planning. The solidity and volume of the city’s buildings show that
they were adapted to the earthquake-prone region in which these architectural
gems were constructed.
Photo archive

THE LIFESTYLE FEATURE MEXICO, WORLD’S HERITAGE
25.
Historic Center of Puebla.
Year of inscription: 1987.
Location: Puebla.
Photo omar bárcena
Puebla, which was founded ex nihilo in 1531, is situated about 100 km
east of Mexico City, at the foot of the Popocatépetl volcano. It has preserved
its great religious structures such as the 16th–17th century cathedral
and fine buildings like the old archbishop’s palace, as well as a host
of houses with walls covered in tiles (azulejos). The new aesthetic concepts
resulting from the fusion of European and American styles were
adopted locally and are peculiar to the Baroque district of Puebla.
Pre-Hispanic City and
26. National Park of Palenque.
Year of inscription: 1987.
Location: Chiapas.
A prime example of a Mayan sanctuary of the classical period, Palenque
was at its height between 500 and 700 A.D., when its influence extended
throughout the basin of the Usumacinta River. The elegance and craftsmanship
of the buildings, as well as the lightness of the sculpted reliefs
with their Mayan mythological themes, attest to the creative genius of
this civilization.
Photo James Gaither
27.
Pre-Hispanic City of Teotihuacan.
Year of inscription: 1987.
Location: Estado de México.
Photo Omar Bárcena
The holy city of Teotihuacan (“the place where the gods were created”) is situated some 50 km
northeast of Mexico City. Built between the 1st and 7th centuries A.D., it is characterized by the
vast size of its monuments – in particular, the Temple of Quetzalcóatl and the Pyramids of the Sun
and the Moon, laid out on geometric and symbolic principles. As one of the most powerful cultural
centers in Mesoamerica, Teotihuacan extended its cultural and artistic influence throughout the
region and even beyond.

64 Negocios i The Lifestyle
NATURAL SITES
1.
Monarch Butterfly
Biosphere Reserve
Year of inscription: 2008.
Location: Michoacán.
Photo Archive
The 56,259 hectares biosphere lies within rugged
forested mountains about 100 km northwest of
Mexico City. Every autumn, millions –perhaps
a billion– butterflies from wide areas of North
America return to the site and cluster on small
areas of the forest reserve, coloring its trees orange
and literally bending branches under their
collective weight. In the spring, these butterflies
begin an eight month migration that takes them
all the way to Eastern Canada and back, during
which time four successive generations are born
and die. How they find their way back to their
overwintering site remains a mystery.
2.
Islands of the Gulf
of California.
Year of inscription: 2005.
Location: Baja California,
Baja California Sur,
Nayarit, Sinaloa
and Sonora.
The site comprises 244 islands, islets and coastal
areas that are located in the Gulf of California in
north western Mexico. The Sea of Cortés and
its islands have been called a natural laboratory
for the investigation of speciation. Moreover, almost
all major oceanographic processes occurring
in the planet’s oceans are present in the
property, giving it extraordinary importance for
study. The site is one of striking natural beauty
in a dramatic setting formed by rugged islands
with high cliffs and sandy beaches that contrast
with the brilliant reflection from the desert and
the surrounding turquoise waters. It is home
to 695 vascular plant species, more than in any
other marine and insular property on the World
Heritage List. Equally exceptional is the number
of endemic fish species. The site, moreover, contains
39% of the world’s total number of species
of marine mammals and a third of the world’s
marine cetacean species.
Photo Sam Beebe

THE LIFESTYLE FEATURE MEXICO, WORLD’S HERITAGE
Whale Sanctuary
3. of El Vizcaíno
Year of inscription: 1993.
Location: Baja California
Sur
Photo Chelsea Leven
Located in the central part of the peninsula of
Baja California, the sanctuary contains some exceptionally
interesting ecosystems. The coastal
lagoons of Ojo de Liebre and San Ignacio are important
reproduction and wintering sites for the
grey whale, harbor seal, California sea lion, northern
elephant seal and blue whale. The lagoons
are also home to four species of the endangered
marine turtle.
4.
Sian Ka’an.
Year of inscription: 1987.
Location: quintana roo.
In the language of the Mayan peoples who
once inhabited this region, Sian Ka’an means
“Origin of the Sky”. Located on the east coast
of the Yucatán peninsula, this biosphere reserve
contains tropical forests, mangroves and
marshes, as well as a large marine section intersected
by a barrier reef. It provides a habitat
for a remarkably rich flora and a fauna comprising
more than 300 species of birds, as well
as a large number of the region’s characteristic
terrestrial vertebrates that cohabit in the diverse
environment formed by its complex hydrological
system.
Photo Javier Hidalgoi

66 Negocios i The Lifestyle
photos courtesy of Carla fernández
Carla
fernández
Mexican Fab
Goes
Creative
Inspired by the indigenous Mexican textile tradition,
Carla Fernández succeeds in intertwining the past,
present and future of Mexican fashion. Be it London,
Paris or New York, her designs captivate runways and
fashion schools.
Rarely do we take the time to consider the ethnic
or cultural character represented in our attire.
However, in their line of work, fashion designers
are not only driven to innovate but also to reflect
on issues such as identity, often based on the history
and the evolution of a technique represented by a garment.
Carla Fernández, a Mexican fashion designer, has directed
her work towards the blending of Mexican fashion designs past
and present, employing meticulous study of the techniques, patterns
and colors of indigenous attire in her country.
As a young woman, Carla Fernández made several family
trips around Mexico. It was during these trips that she had the
opportunity to be exposed to indigenous attire and textile techniques.
Soon, she began integrating elements of the clothing of
these indigenous groups into her own daily dress. Years later,
she had the opportunity to complete her university tour of social
service in the (now closed) Museo Serfín de la Indumentaria
Indígena in Mexico City. There, she sketched patterns of the garments
stored in the museum’s archive in order to analyze the
techniques of their production. She was surprised to find that
almost all the articles were made using square and rectangular
forms.
Fernández knew that techniques of textile design and production
were passed down in indigenous communities through
a strong intergenerational tradition but over the course of her
study of the museum’s archive, she wondered about the source
from which this strong element of parallel-lined shapes had
emerged. She gradually formulated a theory suggesting that
contemporary indigenous attire had come to develop its own
distinct tailoring system, producing as a result a lovely sort of
textile origami.
A few years ago, the young designer became a dressmaking
teacher at the Escuelas Itinerantes de Diseño Artesanal, a
subsidiary of the Mexican government’s Dirección General de
Culturas Populares e Indígenas. At the same time, she opened
up her own fashion studio, Taller Flora, in Mexico City. In this
workspace, she collaborates with a team of designers to manifest
the results of their research in indigenous communities
from around the country, such as Tzotziles, Tzetzales, Mixtecas,
Purépechas, Amusgos, Huaves, Nahuas, Mazahuas, Triques and
Huicholes, among others.
In 2008, Carla Fernández received the Young Fashion Entrepreneur
Award, a distinction conferred by the British Council
on promising up-and-coming designers. The designer has also
appeared in fashion editorials in magazines such as Mexican
Celeste and British Wallpaper. Her work was part of Manifesta
2008 Fashion Fest, an event which took place in Tretino, Italy.
Taller Flora produces artisanal garments, requiring a great
deal of craft work, thus allowing its team to produce only 30
pieces per design. One can buy one of these masterpieces at
exclusive stores like August, in North Oakland (USA), and Q,
in Oaxaca City, Mexico. In 2009, this Mexican designer’s works
were also available at the Ethical Fashion Show in Paris and the
London Fashion Fest. n

“My work consists
in connecting
rural communities
with the world of
fashion. I work with
different artisans
from different
ethnic groups
around Mexico
and together we
create new designs
based on indigenous
techniques and
practices. I like
fashion, folk, and the
future.”
Fashion Carla Fernández

68 Negocios i The Lifestyle photo Archive
The
Guelaguetza
Expression of
Mexican essence
Held in July, in Oaxaca, Guelaguetza, which comes from the Zapotec
word meaning “present” or “mutual offering”, is one of the most colorful
celebrations in the Americas.

popular culture the guelaguetza
Photo Carlos citalán
More than 3,000 years ago
the indigenous peoples
of Oaxaca began to cultivate
plants to supplement
their hunting, fishing and
gathering. The most important of these plants
was corn, which formed the basis of their diet.
With the addition of tomatoes, beans, chiles
and squash, their simple diet evolved into a
richly varied and delicious regional gastronomy
–which is today celebrated during the Food
of the Gods Festival in early October. Thus the
gods and goddesses involved with water and
corn were vital among the celestial hierarchy
and the tribute to them was a lively and colorful
celebration with music, dance and artifacts
of the people.
This offering of life’s gifts took place midway
through the rainy season, when it was essential
that the rains continue moderately and
without excess to bring forth the best crops.
The feast of Xilonen, goddess of tender corn,
falls on July 16 (in the modern calendar) and is
the signal to launch the two weeks of celebration.
When the Spanish arrived in Oaxaca in
1521, they attempted to impose upon and convert
the indigenous people to Catholicism. Part
of their strategy was to reinterpret the deeply
rooted customs honoring pagan beliefs. For example,
razing temples and building churches
on the ruins and conserving the holiness of the
place but identifying it with the new religion. In
the case of the Guelaguetza, it was incorporated
into a celebration of the feast of the Virgin of
Carmen on July 16, which is why the celebration
begins with calendas and other festivities
at the church of Carmen Alto.
The Spanish introduced new products
and techniques which resulted in changes to
lifestyles and traditional dress. Prior to their
arrival, textiles were made from cotton. Nowadays,
one sees silk, wool and glass beads in the
clothing of the delegations of the Guelaguetza.
Overlooking the present city of Oaxaca is
the hill known as Cerro del Fortín, from the
location of Aztec garrisons there in the 15th
century. This ridge was a popular place for
outings and came to be the traditional place for
celebrating the Lunes del Cerro (Mondays on
the Hill) when the Guelaguetza began to focus
on the celebrations held on the two Mondays
following the feast of the Virgin of Carmen on
July 16.
In 1932, the city of Oaxaca celebrated the
400th anniversary of its designation as a royal
city by Charles the fifth of Spain. As a part of
that year’s festivities it was organized into the
forerunner of what we might call the “modern”
Guelaguetza, with representation of the ethnic
groups from all the seven regions of the valley.
Over the past 69 years it has become a highly
publicized major cultural event. Approximately
30 years ago, an amphitheater seating close
to 11,000 people was built to accommodate
this exuberant expression of Oaxacan folklore.
Other events have grown up around the two
Mondays –some original indigenous traditions,
especially in the villages, and some more modern
innovations such as the contest to select
the goddess Centéotl who presides over the
festivities. The goddess Centéotl is chosen from
among the candidates sent by each delegation,
not only for physical beauty, but also for her
knowledge of the area’s history, customs and
traditions. There is also the Bani Stui Gulal, a
dramatic presentation of how the Guelaguetza
has been celebrated in different epochs, plus
the presentation of the Legend of Donají on
each of the Monday nights in the Guelaguetza
auditorium. The Legend of Donají is the story
of the last Zapotec princess, full of light, sound,
fireworks and drama.
The “official” Guelaguetza is now organized
and promoted by the government of the state.
It is held on the two Mondays following July 16
(unless July 18, the anniversary of the death of
Benito Juárez, falls on a Monday, in which case
it is carried out on the following two Mondays).
The Instituto Oaxaqueño de las Culturas and
the city also organize various collateral events.
On the Monday on the Hill at dawn, people
are already walking to the auditorium, with
music, fireworks and pageantry. Around 9:00
am, the delegations and spectators begin to
arrive, the seats fill up and the excitement increases.
The morning is generally perfect with
bright warm sunshine and mostly clear skies.
At around 10:00 am, the goddess Centéotl and
all the delegations are presented and parade
around the stage. Centéotl then takes her seat
with the Governor of the state and invited dignitaries,
high officials and personalities from
around the world and as the first delegation is
introduced the celebration begins. n

70 Negocios i The Lifestyle
photo Gary Denness
Revitalizing
Mexican Cities
Mexico City, Monterrey and Querétaro are rebuilding their historic
centers, looking to bring residents back in order to have them bustling
with activity as they once were.
Downtown areas of some of
Mexico’s most populated cities
are known for their cultural
richness, architectural and
historical value as well as their
dynamic lifestyles. These qualities make them
the best places to visit and to live in. It is here
where people, traditions, commerce, the arts,
business and entertainment come together to
give a particular city its own character. Three
major cities: Mexico, Monterrey and Querétaro,
are in the process of revitalizing their
downtown areas –known as centros históricos
and some neighborhoods –known as barrios.
That renewal process, also called gentrification,
intends to repopulate areas that have
been mostly abandoned by residents. The
trend of inhabitants leaving such historic centers
is actually common to many cities around
the world. The revitalization project therefore
seeks to generate certain policies and processes
for these areas, which have been a city’s
cultural focus through their museums, historic
monuments and the like, to regain their value.
These spaces, the heart of a city, are normally
full of activity and people during the day, partly
because of tourists. But at night, their populations
diminish significantly.
It was feared that these historic centers
would deteriorate if left alone. That is why local
governments together with the public and
private sectors are now developing solutions
to keep such areas alive. That has generated
many ideas, including using business towers
as residential spaces, rehabilitating deteriorated
buildings, improving municipal services
and creating new jobs in these districts. Other
proposals include promoting events to attract
people, promoting activities in museums and
inviting schools to take advantage of the architecture
and beauty of public spaces. The goal
is to regain the city for its current inhabitants
and coming generations that will surely benefit
from a more attractive city life.
One of the world biggest cities, Mexico City
certainly has its charms. A lot of work, creativity
and thinking have been implemented to make
this incredible metropolis a better place to live.
In 1990 a trust named Fideicomiso del Centro
Histórico de la Ciudad de México was created.
Its objective is to promote, manage and coordi-

architecture revitalizing Mexican cities
Photo Archive
nate with the private and public sectors actions
and services that help the revitalization, protection
and conservation of the historic center.
Since the creation of the Fideicomiso, a lot
of work has been done. In 2002, the city’s government
allocated 40 million usd to renovate
34 blocks and almost 500 properties near the
main square –around the streets of Donceles,
Venustiano Carranza, Eje Central and 5 de
Febrero. In the square, the block of República
de Guatemala and Argentina, an old colonial
house dating from the 18th century, was rehabilitated
as part of an agreement between
the Mexican and Spanish governments. Spain
invested 50,000 usd for the creation of Centro
Cultural de España, (Spanish Cultural Center),
which was inaugurated in November 2002 after
much hard work. Today, it is an active, multitask
cultural center, which holds exhibitions,
concerts and also has a beautiful restaurant in
its terrace overlooking the cathedral.
Something green and something great is
also happening in Mexico City. The need of
creating more eco-friendly areas has generated
some interesting ideas. One example is a
vertical garden located in the dead end street
of 5 de Mayo. It was inaugurated last summer.
Its design is of a serpent moving on a wall and
it covers a surface area of 350 square meters.
It is the first vertical garden in Latin America.
Another project is creating gardens on the flat
roofs of some big buildings. The first flat roof
garden, at 65 Delicias Street, was also inaugurated
last June. The goal is to have 6,000

72 Negocios i The Lifestyle photo Pedro Ángeles
Photo San Gatiche
Photo Gary Deness
square meters of vertical gardens and flat roof
gardens by 2012, instead of reforesting Mexico
City.
Some artists are moving back to the historic
center, to live and create in this new atmosphere.
The ambiance is a mixture of new
inhabitants together with those who have
lived for a long time in and around downtown.
Renovation plans continue. A new budget was
recently assigned to continue with the rehabilitation
of streets, now directed at the Corredor
Cultural Alhóndiga. Other projects soon to be
worked on include creating a modern public
transportation system for the main square,
cleaning the water from the fountains and lifting
up the Santísima Trinidad cathedral at the
Zócalo.
Monterrey, the capital city of Nuevo León,
is one of Mexico’s strongest metropolises because
of its industrial development. Monterrey
is considered to be more a place for business
than for culture or tourism. But it still has an
active cultural life and a beautiful historic center.
It has old colonial places like the Obispado
and impressive modern ones like the Museo
de Arte Contemporáneo or MARCO (Monterrey’s
Contemporary Art Museum).
The city is also facing the challenge of losing
downtown inhabitants. According to the Mayor,
the population in the interior of the city in
the last 30 years has dropped from 300,000 to
only 30,000 residents. To counteract this trend,
officials have encouraged dividing old houses,
based on their size, into two or four living areas
or apartments. This would increase the population
density in the area. Another proposal,
by the company Urbina, is looking to renovate
a business tower –Seguros Monterrey– into
luxury apartments or lofts.
Querétaro, along with Mexico City, hosts
several World Heritage sites. Its historic monuments
zone was added to the list in 1996. Since
then, the main goal of the local government
has been the conservation and renovation of
the district. But the area also experienced a reduction
of its population. The rescue of downtown’s
historic monuments has been done
hand in hand with the National Institute of Anthropology
and History (INAH, for its acronym
in Spanish), to preserve their historic heritage.
These efforts have so far renovated multiple
buildings and monuments like Palacio Municipal,
Casa Ecala, Plaza de Armas and Fuente de
Neptuno. n

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