Mexico

Capital: Mexico City

Population: 112 million

GDP* per capita: 10,467 USD

Currency: Mexican peso

Language: Spanish

*(purchase power parity)

Summary

During recent years, the publishing industry in Mexico has shown continuous growth. According to the National Publishing Industry Association (Caniem), sales in 2011 were around US$800m. Mexico is a large and diverse country with over 112 million inhabitants, positioned as the most populous in Latin America after Brazil. It is estimated that government publishing represents about 63% of the total market (246 million books per year), while commercial publishing represents about 37% of the market. Book imports to Mexico are comprised mostly from the United States, Spain, Germany and Great Britain. U.S. proximity to Mexico provides a competitive advantage to U.S. firms over more distant foreign competitors due the lower cost of shipping.

Current Market Trends

The most recent national census in 2010 estimated the population of Mexico to be 112 million, while Mexico City and surrounding areas have 25 million, the largest population concentration in the world. There are two other metropolitan cities, Guadalajara and Monterrey, which make up 2% of the national territory yet have 25% of the country’s total population.

To become the Latin American leader in the publishing industry, the Mexican government, specifically through the Education Ministry, has implemented several programs to improve educational levels and literacy such as the production and distribution of free official books for elementary and secondary schools. It is a key element to increase reading and improve the level of education in the country. According to a survey conducted by the National Council for Culture and Arts (Conaculta), 56.4% of Mexicans read books, 42% read newspapers, 39% read magazines and 12% read comics.

Mexico is a country with a large population of young people, and according to the latest National Survey of Reading, people between 18-22 years old report the highest level of reading habits. The largest children’s library in Mexico and one of the largest in Latin America opened its doors in Mexico City in November 2012. It will display about 25,000 titles and more than 3,000 in digital format, with the aim of promoting reading among the city’s young population.

Headquarters for the Mexican book industry are heavily concentrated in the Mexico City metropolitan area (80% concentration) followed by smaller concentrations of industry-affiliated businesses in Queretaro, Sinaloa and other states. Online book selling is a growing trend in Mexico due to increased use of the internet as well as the time-saving benefits of online shopping. However, shipping costs and delivery times are still an obstacle especially due to high courier rates.

Digital publishing is becoming popular in Mexico, as the increasing access to the internet and the adoption of technology such as tablets and smart phones is changing the way people access to culture.

Mexico is working with the Regional Center for the Advancement of the Book in Latin America and the Caribeean (CERLALC) to lead the push towards a common digital platform for Latin America.

Market Data

The National Publishing Industry Association (Caniem) reported sales of $855 million dollars in 2011. The book market is dominated by educational products, representing about 60% of total sales, mainly dominated by the government through programs like “Bibliotecas de Aula, Escolares and Texto de Secundaria Gratuito”. Eighty nine percent of the commercial book production was sold in Mexico, from which 45% was distributed in Mexico City. In 2011 over 25,000 titles were published showing an increase of 6% from previous years.

The main sectors of interest are education textbooks, literature, history, biographies, scientific & technical themes.


MAIN THEMES OF INTEREST
School	32.5%
Literature	23.3%
History	22.7%
Personal Growth	19.7%
Biographies	16.4%
Scientific & Technical	16.1%
Encyclopedias	15.2%
Tales	11.8%

Source: Conaculta

According to the latest Survey of Reading, 59% of Mexicans buy books, 20.1% borrow the books from family or friends, 17.9% have received books as gifts; and 10.2% have used a library. In 2010, Mexico exported 15.4 million books, with a sale value of US$75.1m; 12.9 million books were imported with a total cost of US$55.1m.


MEXICAN EXPORTS
Guatemala	29%
United States	25%
Costa Rica	24%
Peru	22%

Source: Caniem

The adoption of new technologies has impacted the publishing industry in Mexico. In its early stages, Mexico will take the lead in Latin America in the transition of the traditional book industry to the e-book era. Some of the challenges to overcome will be:

The digitalization of existing titles
The search of technology partners
The coordination of simultaneous print and digital launching of titles
Training on digital tools (e-commerce, e-marketing, etc)

Publishers have some concerns about this transition, but realize that readers’ habits are changing.

Current Demand

There are significant publishing opportunities for US exporters:

New printing technology
Bestsellers
Technical books
Scientific books
Dictionaries
Books for children

Key Suppliers

During the last few years, the publishing import market has been dominated by the United States and Spain. Other strong competitors are the U.K., Germany and China.


2011 U.S. Exports of HS 4901 - BOOKS, BROCHURES & SIMILAR PRINTED MATTER
Partner	2009	2010	2011
Canada	1,079,726,985	1,150,721,864	1,111,923,921
United Kingdom	423,029,723	424,698,588	455,559,969
Mexico	150,447,371	151,314,906	120,354,108

Source: Census Bureau, Office of Trade and Industry Information, International Trade Administration, U.S. Department of Commerce, December 2012

Market Entry

In Mexico, there are three main methods of entering the publishing industry. The author can contact a publisher who has business relationships with bookstores and specialty libraries to reach consumers. Alternatively, the publisher can work through a distributor to access channels such as bookstores, self-service stores, direct-sale, newspaper and magazine street stands, among others. The third option involves the author contacting book importers directly who will approach those outlets. Please note that distribution through bookstores is subject to the particular bookstore’s internal policies for new acquisitions.

Sales Distribution Channels Percentage for Books

The following chart shows the sales distribution of books in Mexico. The government and bookstores are the two most important sales channels in the Mexican market.


MEXICO - BOOK SALES DISTRIBUTION
Government	33%
Bookstores	29%
Exports	11%
Schools	9%
Department Stores	8%
Others	6%
Companies	4%

Source: Caniem

Market Challenges

As prescribed in the Book Reading Promotion Law, any book published in Mexico must contain information such as the title, author name, editor, edition number, date and printed date, editor name and business address, ISBN and bar code number.

In order to comply with this law, the book importer or publisher is obligated to set a fixed sales price known as a unique price, with exemptions given to educational entities and scientific research institutes. The importer and/or publisher can apply lower sales prices only for books already on the shelf for 18 months, antique books, used books, sold-out books and hand-made books. Prices are to be registered online with the National Council of Book Promotion.

Like the United States, Mexico uses the Harmonized Tariff System (H.S.). However, Mexico uses only eight digits while the U.S. uses up to ten digits. HS codes are mostly universal, but a few U.S. and Mexican codes are different. Overall, there are no major regulations for books, periodicals and related materials, though importers need to have an import license. Furthermore, the Tax Law exempts importers from paying 16% tax for books imported into the country. However, U.S. exporters are advised to work closely with their importers and customs brokers to ensure that any specific requirements for their books and materials are met, avoiding complications at the border.

Intellectual Property Rights

Two different laws provide the core legal basis for protection of intellectual property rights (IPR) in Mexico: the Industrial Property Law (Ley de Propiedad Industrial) and the Federal Copyright Law (Ley Federal del Derecho de Autor). The National Institute of Author Rights (Instituto Nacional del Derecho de Autor) administers Mexico's copyright register and also provides legal advice and mediation services to copyright owners who believe their rights have been infringed.

It is highly recommended that US exporters register their copyrights in Mexico to get protection. For more information, please refer to the following website:

http://www.stopfakes.gov

U.S. authors need to be aware of Intellectual Property Rights protection in the U.S. and abroad including Mexico. The U.S. Department of Commerce through the United States Patent and Trademark Office provides the following information to obtain IPR protection in the United States.