2006年-世界发展银行全球_Openness_and_Industrial_Response_in_a_Wal-Mart_World__A_Case_Study_of_Mexican_Soaps_Detergents_and_Surfactant_Producers_35页_321kb

Summary of "Openness and Industrial Response in a Wal-Mart World: A Case Study of Mexican Soaps, Detergents and Surfactant Producers"

Core Content

This working paper analyzes the impact of Mexico's trade liberalization and the entry of Wal-Mart into the Mexican market on the soaps, detergents, and surfactants (SDS) industry. It uses a case study approach to explore how these changes affected innovation, trade, and industrial performance.

Main Objectives

• To understand the effects of Mexico's trade liberalization (GATT and NAFTA) on the SDS industry.
• To investigate the channels through which market opening influenced industrial performance.
• To examine the responses of Mexican SDS producers to the new competitive environment created by Wal-Mart's entry.

Key Findings

1. Impact of NAFTA and GATT on the SDS Industry

• Market Opening: Mexico significantly reduced trade barriers and liberalized its foreign investment code between the mid-1980s and mid-1990s, leading to increased market access for foreign firms.
• Wal-Mart's Role: The most profound effect of these policies was the entry of Wal-Mart into Mexico (Walmex), which transformed the relationship between SDS producers and retailers.
• Bargaining Power: Walmex used its market dominance to reduce profit margins of major brands and to leverage small, efficient local producers for its store-brand products.
• Survival and Growth: The most efficient firms survived and became more innovative and efficient, adopting technologies introduced by multinational competitors.
• Value-Added per Worker: The SDS sector saw a substantial increase in value-added per worker, with real value-added growing by 50% and employment declining by over 20% from 1999 to 2004, resulting in nearly 90% improvement in productivity.

2. Innovation and Knowledge Diffusion

• Multinational Innovation: Multinational firms like Unilever and Henkel invest heavily in R&D and introduce complex, innovative detergent formulations.
• Knowledge Spillovers: These innovations often lead to imitation by competitors and adjustments by input suppliers.
• Local Innovation: Mexican-owned firms adopt innovations from multinationals, often prompted by customer demand, including Walmex.
• Product Adaptation: Mexican producers focus on traditional powdered detergents with sulfate fillers, which are preferred due to hard water conditions, and have not adopted the compact or liquid formats popular in the U.S.
• Technology Transfer: Input suppliers, often foreign affiliates, provide new formulations and technologies, helping local producers improve efficiency and product quality.

3. Export Performance and Constraints

• Export Growth: Mexican SDS exports to the U.S. increased significantly after 1994, capturing a growing share of the market, particularly among the Latino community.
• Market Limitations: Exporting to the non-Latino U.S. market requires substantial marketing investments and retooling for phosphate-free concentrated products.
• Transportation Costs: These are a major constraint, with border delays increasing shipping costs by 9-15%. Detergents have a low value-to-volume ratio, making transportation a significant cost factor.
• Regulatory Delays: The U.S.-Mexico border regulatory environment increases costs and hampers the competitiveness of Mexican SDS products abroad.

4. Structural Changes in the Retail Sector

• Retail Modernization: The entry of Wal-Mart led to the modernization of retail operations, including improved warehousing, distribution, and inventory management.
• Supplier Relations: Walmex introduced strict supplier management practices, including standardized delivery, quality audits, and annual price reductions.
• Retailer Dominance: A few major retail chains dominated the market, while smaller ones were forced out. Walmex became the largest player, with sales reaching $12.5 billion by 2004.

Conclusion

• The SDS industry in Mexico has experienced significant structural and efficiency improvements post-NAFTA, driven by the entry of Wal-Mart and the resulting changes in supplier-retailer dynamics.
• While Mexican SDS producers have gained market share in the U.S., especially among Latinos, their ability to expand further is limited by high transportation costs, regulatory delays, and the need for costly retooling.
• The industry's response to market opening has been mixed, with some firms benefiting from increased efficiency and innovation, while others have struggled to adapt to new market conditions.

Key Factors Influencing Industrial Response

• Bargaining Power of Walmex: Influenced pricing and production efficiency.
• Access to Technology and Innovation: Provided by multinationals and input suppliers.
• Consumer Preferences: Mexican consumers favor traditional powdered detergents, limiting the adoption of new formats.
• Transportation and Regulatory Costs: Major barriers to expanding U.S. exports.
• Market Segmentation: Mexican firms have focused on the Latino market, avoiding the need for costly retooling and marketing.