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1 the lifestyle feature Destination: Mexico, Mexican Design at MoMA Stores III creative industries in mexico Matrix of the Spanish Digital Wave

2 There Are many ways to get your clients attention, none as effective as ours Published monthly in English. Distributed among businessmen, decision-makers, research centers and national and international subscribers. Close to 10,000 copies out of 15,000 are distributed abroad through a network of more than 30 representative offices located in 22 countries in the Americas, Asia, Europe and the Middle East; all Mexican embassies and consulates and at international trade shows and expos. Geographic distribution covers a wide spectrum of key countries and cities, which guarantees a strategic coverage in the world s leading markets. negocios.promexico.gob.mx

3 WELCOME TO THE GLOBAL MARKETPLACE How do you reach other markets? First, get there. And if you can do it with someone who knows how to lead the way with the proper tools, even better. At FedEx, we have the resources you need to help your product go further. Not just because we own the largest air cargo fleet in the world, but also because our goal is to help you get where you want to go and see you succeed. And that s the best starting point. What moves you, moves us. We have a variety of destinations and services that put your goals in motion. Visit us or call. Wherever you want to go, we re waiting for you. fedex.com/mx

4 2 Negocios Contents Photo archive 20 Cover feature Creative Industries in Mexico: Matrix of the Spanish Digital Wave From the CEO 5 Briefs 6 Figures mexico s trade and investment 10 Mexico in the World mexico in the video game industry 14 Business Tips mexico and digital creative cities 16 Mexico s Partner kaxan media group 30 Gyroscopik studios 32 slang 34 neggi studios 36 larva game studios 38 XIBALBA STUDIOS 40 DIGITAL CHOCOLATE 42 METACUBE 44 CANANA films the mexican film industry A Plot that Continues to Thicken Photo FICG27 / MICHEL AMADO

5 NEED A SUPPLIER? Can be your best ally. Mexican exporting companies meet the highest international quality standards and are allset-up to serve the most demanding markets, helped by the largest network of free trade agreements in the world and competitive costs. We have the largest directory of Mexican world-class companies. Let us help you find the perfect match for your needs.

6 4 Negocios ProMéxico Carlos Guzmán Bofill ceo Ilse Oehler Grediaga Image and Communications Director Sebastián Escalante Managing Coordinator The Lifestyle Contents 56 logo courtesy of moma design store Miguel Ángel Samayoa Advertising and Suscriptions Natalia Herrero Copy Editing q-10 comunicación Emma Lucila López Valtierra Publisher Sergio Anaya Editor in Chief Paola Valencia The Lifestyle Editor Carlos Molina Design COVER ILLUSTRATION Mariana Ramos Romo 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 This publication is not for sale. Its sale and commercial distribution are forbidden. 64 young names In the Mexican Creative Scene The Lifestyle Briefs 50 Gastronomy Maximo bistrot local 52 TV & Film Industry THE LIFT Hours In PUEBLA 68 Mexico According To cecilia suárez 72 Negocios ProMéxico es una publicación editada mensualmente en inglés por ProMéxico, Camino a Santa Teresa número 1679, colonia Jardines del Pedregal, Delegación Álvaro Obregón, C.P , México, D.F. Teléfono: (52) Página Web: Correo electrónico: Editor responsable: Gabriel Sebastián Escalante Bañuelos. Reserva de derechos al uso exclusivo No Licitud de título: Licitud de contenido: 12032, ambos otorgados por la Comisión Calificadora de Publicaciones y Revistas Ilustradas de la Secretaría de Gobernación. ISSN: Negocios ProMéxico año 5, número III, marzo 2012, se terminó de imprimir el 10 de marzo de 2012, con un tiraje de 11,000 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. Publicación Gratuita. Prohibida su venta y distribución comercial. 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 responsibility of each text falls on the writers, 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. March 2012.

7 From the CEO. In a world where ideas and creativity have become fundamental to global economy, Mexico maintains its position as a source of talent and a pole of innovation. A young population of Mexicans, growing hand in hand with technology development, have found a way to integrate their cultural identity and traditions into new trends of the creative industries. Their creative tradition and innovation capacity are also joined by technology. The result is a creative economy that moves forward confidently in the global market; young businesses that are becoming leaders in fields such as video game development, digital animation, film and television production. Characters sprung from Mexican imagination are present in TV, film and video game screens in Spanish-speaking countries and around the world; stories imagined and narrated by Mexicans are now considered universal language. However, the contributions of Mexico s creative industries are not limited to what appears on those screens; behind the images and movements of the characters in a video game or a digital animation product are the knowledge and talent of many Mexicans. Mexico is consolidating itself as an important development pole for today s creative industries, where technology is undoubtedly crucial, but so is the ability to handle it and the talent and creativity to apply it to specific products. This issue of Negocios intends to prove that Mexico s creative nature is not only unique but also booming.. Welcome to Negocios! Carlos Guzmán Bofill CEO ProMéxico

8 briefs. INFORMATION TECHNOLOGY Photo Courtesy of ericsson Strengthening Global Leadership from Mexico Ericsson inaugurated a new Global Network Operations Center (GNOC) in Mexico City. The new facility, called Ericsson Tecnoparque, houses highly skilled ICT and services professionals, it is the company s fourth GNOC worldwide and will help Ericsson to expand its operations capabilities in the region. It holds a multidisciplinary team with capacity to serve multiple platforms with multiple customers and technologies, employing several hundred bilingual professionals from various disciplines and specializations, which are highly trained on advanced tools for network management and customer service. FOOD INDUSTRY Mexican & Organic Photo archive The firm Certimex obtained approval from the European Union (EU) of official certification to inspect organic products from Mexican companies seeking to export to Europe. Certimex is the first and only Mexican company in its sector approved and registered by the EU to certify that certain Mexican products meet the requirements for sale in all 27 EU member countries. The EU took two years to evaluate the company, which is headquartered in Oaxaca. Certimex has 50 employees and is represented in 10 Mexican states. Among its clients are companies producing organic coffee, mangoes, agave syrup, honey, avocado, mezcal, rum, sugar cane and 50 other products.

9 briefs. RENEWABLE ENERGY & MINING An Effort on Behalf of the Environment With an investment of more than 115 million usd, Grupo México will build five hydroelectric plants in the state of Puebla between 2013 and 2016, to generate power for the company s own consumption. The energy will be sold to the company s mines through the Federal Electricity Commission (CFE), as an alternative to mitigate the environmental impact of Grupo Mexico s mining operations. RETAIL COMMERCE Growth Plans Wal-Mart de México expects to post sales growth of between 13% and 15% in The company plans to invest 1.55 billion usd in 2012, from which more than 60% will be used to open 410 to 436 stores in Mexico and Central America. In 2011, Wal-Mart de México opened one new store a day on average in Mexico. Photo Courtesy of wal-mart FOOD INDUSTRY In the land of Cacao Italian confectioner Ferrero will construct a 190 million usd production plant in Mexico its first in the country. The facility, consisting of four production lines, will be constructed at the Parque Opcón industrial park, in San José Iturbide in the state of Guanajuato. It will produce Nutella and Kinder products; 40% of output will be exported to the US, with the additional 60% rolled out in Mexico and Central American markets. The site is expected to be fully operational in May When at full rate, it will employ 500 persons besides the 600 already working for Ferrero de México. Photo archive

10 8 Negocios briefs. AUTOMOTIVE Enlightening Move Photo Courtesy of hella KGaA Hueck & Co. Germany s Hella KGaA Hueck & Co. plans to break ground on a new 215,000-square-foot facility to produce automotive headlamps and rear lighting systems in Irapuato, Guanajuato, later this spring. The new plant is scheduled to open in June 2013 with an annual capacity of approximately 1.2 million headlamps and 1.5 million rear combination lamps. The company will invest more than 97 million usd in the new facility. Hella is also expanding its facilities in Guadalajara, where it will open a new development center. The new manufacturing facilities will increase Hella s annual production capacity in the Americas for headlamps from 3.7 million to 4.9 million. Production capacity for rear combination lamps will grow from 2.5 million to 4 million. Hella currently supplies BMW, Chrysler, Ford, General Motors and Mercedes-Benz from its Mexico facilities. logistics From Belgium to The Americas Photo archive Katoen Natie, a Belgian logistics and storage company, opened a multimodal distribution center at Huehuetoca in Estado de México, with an investment of 25 million usd. RENEwable energy Expanding Horizons with Energy In an effort to further expand its renewable energy businesses, Mitsubishi Corporation (MC) has decided to acquire a 34% stake in Mareña Renovables wind power project in Oaxaca, with a 396MW capacity, which is the largest wind farm project in Latin America. The project, which will cost approximately 1 billion usd, will be jointly developed by MC, Macquarie Mexican Infrastructure Fund and PGGM. The project involves installing 132 wind mills across several tens of kilometers of the Tehuantepec Isthmus, and is expected to be complete in July The power generated by the wind farm will be provided to FEMSA and Heineken.

11 briefs. automotive MANUFACTURING Filtering Success Photo Courtesy of faurecia Intelligent Interiors Donaldson Co., one of the largest filtration systems manufacturers in the world, opened a new manufacturing plant in Aguascalientes, Mexico, close to its existing plant in the country, which is the company s headquarters for Latin America and The Caribbean. The new 150,000 square foot facility is fully operational and significantly expands Donaldson s capabilities for producing air filtration products. Additionally, Donaldson will utilize its existing plant to increase liquid filtration manufacturing. The new Aguascalientes plant, which employs 260 people, is pursuing LEED (Leadership in Energy and Environmental Design) certification. Photo archive With a 25 million usd investment and the creation of 150 direct jobs, Faurecia, a global auto parts company specialized in the engineering and production of automotive solutions, opened its new facilities in Ciudad Textil Industrial Park in Huejotzingo, Puebla. Photo Courtesy of denso automotive Japanese Manufacturers Eyes on Mexico Japanese auto parts manufacturer Yorozu will invest about 70 million usd to build a new plant in the state of Guanajuato, in response to rising demand for vehicles in the Americas. The new Mexican unit is expected to be fully operational in 2015, creating about 230 jobs and generating sales of 62.5 million usd. Yorozu has another subsidiary in the state of Aguascalientes and plans to manufacture shock absorbers at the new plant in Guanajuato. Yorozu s announcement comes just over a month after Japanese auto parts manufacturer Denso unveiled its plans to build a plant to produce air conditioning equipment in Guanajuato. Based in the city of Apodaca, Guanajuato, Denso Mexico will start constructing its new factory in March in Silao, at a total cost of 57 million usd. /

12 10 Negocios infographic oldemar MEXICO, A BIG PLAYER IN INTERNATIONAL TRADE TOTAL MEXICAN EXPORTS IN THE LAST DECADE (million USD) Canada 10, MEXICO S TOP PARTNERS IN... Exports by country in 2011 (million USD) US 274, Colombia 5, , , , THE AMERICAS Total Mexican exports (million USD) 199, , , Chile 2, Brazil 4, , , In 2011, Mexican exports grew over 17% compared to 2010 and more than 110% compared to Growth % 11

13 UK 2, EUROPE Total Mexican exports (million USD) 6, , , Growth % 21, Negocios figures 2, , ASIA Total Mexican exports, (million USD) 14, , , Spain 4, The Netherlands 2, Germany 4, Italy 1, South Korea 1, , Japan 2, , Growth % 11 Algeria Egypt India 1, China 5, Nigeria Singapore Papua New Guinea 3.16 Angola South Africa AFRICA Total Mexican exports (million USD) OCEANIA Total Mexican exports (million USD) Australia New Caledonia 1.44 Samoa 0.76 New Zealand Growth ,674.93% Growth % Source: Banco de México.

14 12 Negocios infographic oldemar 8 7 FDI BY STATE DURING 2011 (million USD) MEXICO, AN ATTRACTIVE INVESTMENT DESTINATION 32 Chiapas Hidalgo Campeche Tabasco Zacatecas Aguascalientes Oaxaca Colima Tlaxcala Yucatán Michoacán Sinaloa Coahuila Guerrero Veracruz Morelos Nayarit Baja California Sur San Luis Potosí Sonora Quintana Roo Guanajuato Durango Puebla Tamaulipas Querétaro Germany France Ireland Brazil FOREIGN DIRECT INVESTMENT IN MEXICO Total FDI by year, million USD 18, , , , , , , , , , , ,

15 TOP 10 INVESTOR COUNTRIES FDI in Mexico by origin during 2011 (million USD) WHERE DOES FDI GO? FDI in Mexico by sector during 2011 (million USD) Negocios figures Manufacturing 8,572.0 Finance and Insurance 3,504.2 Construction 1,239.5 Information 1,110.8 US 10, Wholesale Trade 1,077.6 Mining, Quarrying, and Oil and Gas Extraction Retail Trade Spain 2, Real Estate and Rental and Leasing Professional, Scientific and Technical Services The Netherlands 1, Accommodation and Food Services Switzerland 1, Transportation and Warehousing Utilities Canada Management of Companies and Enterprises Japan Arts, Entertainment and Recreation 75.9 Other Services (except Public Administration) 70.7 Administrative Support, Waste Management and Remediation Services 27.1 Agriculture, Forestry, Fishing and Hunting 16.8 Jalisco Baja California Estado de México Educational Services 3.7 Health Care and Social Assistance 2.5 Chihuahua Nuevo León Distrito Federal 13, Source: General Directorate of Foreign Investment, Ministry of Economy.

16 14 Negocios photo Archive Mexico: A Key Player in the Video game Industry Mexico is the biggest market for video games in Latin America and has emerged as one of the countries with the largest potential to develop the video game industry. by alfonso mojica navarro* The multimedia industry is one of the most relevant worldwide, considering it is expected to drive global growth during the following years, not only from an economic perspective, but also as a way of transferring culture and promoting technological development. Within the multimedia industry, the video game software sector constitutes a key element, given that it is expected to grow four times faster than the media and entertainment markets altogether. As a result of this global growth, the video game sector has diversified, permeating other areas beyond entertainment, such as education and awareness campaigns. Furthermore, the expansion of the video game industry has led to an increasing demand for skilled people, competitive costs and government support. This has, in turn, led to the arrival of new players who have transformed the market. Mexico has emerged in this new wave of countries with potential to develop the video game industry. Today it is the most important market for video games in Latin America and one of the top 15 worldwide. And, even though most of the content produced by Mexico is consumed abroad, the country has been setting up the bases to develop a national industry, through the attraction of the most representative international companies and the promotion of domestic companies. The development of the video game industry in Mexico can be attributed to several factors, such as: Low costs in audiovisual production and development, surpassing countries like Canada, the UK or France. Competitive human capital that will steadily increase in the following years, as shown by the fact that more than 790,000 students are enrolled in engineering and technology-related programs and over 100,000 graduate from such programs each year. Increasing training and education in areas such as design and game programming by specialized universities. Port of entry to other Latin American markets, especially those with Spanish as their primary language. This means foreign companies interested in entering the Mexican market, may also have the opportunity to penetrate other Latin American markets. Mexico s interactive media sector currently exhibits many of the characteristics common to a growing industry sector, where companies are more focused on the beginning of the value chain. And, even though the interactive media industry is often seen as one that is not limited by geography, in the case of Mexico, it has developed an excellent base on which to build. Mexico has succeeded in developing a national industry, which is being driven by cluster-like sectors in the major centers, comprising companies that develop

17 mexico IN THE WORLD software for video games. For this reason, the Mexican government at the federal and local levels has promoted the generation of a world-class video game development industry in the country, managing multiple programs aimed at attracting foreign companies and propelling national developers. Such is the case of Mexico s Digital Creative City project, which was recently launched in Guadalajara, Jalisco. This is the most ambitious project the government has implemented to promote the creative industries. The Digital Creative City will welcome domestic and international companies specialized in developing software for the creative industries, looking to create synergies between them. n * Trade Commissioner at ProMéxico s Representative Office in Montreal, Quebec, Canada.

18 16 Negocios photo Archive Mexico and digital creative Cities The establishment of a Digital Creative City in Guadalajara, Jalisco, puts Mexico in a leading position within creative economies worldwide. Guadalajara s Digital Creative City will be designed to attract high-level investment in the information and communications technologies sector. by maría cristina rosas* The term creative economy was coined in 2001 by John Howkins, a journalist who now acts as a consultant to over 30 governments around the world. In an interview with the World Intellectual Property Organization (WIPO), Howkins defined such an economy as one in which the major inputs and outputs are ideas [ ] it s an economy where people spend most of their time in having ideas. It s an economy or society where people think about their capacity to have an idea; where they don t just have a nine-to-five job, something routine and repetitive, which is what most people did for many years whether it was in the field or in the factory. It s where people, doing the most common of things talking to their friends, having a glass of wine, waking up at four o clock in the morning, think they can have an idea that actually works. Not just an idea with some sort of esoteric pleasure, but rather the driver of their career, thoughts of status and thoughts of identity. A creative economy operates through transactions in creative products. Each transaction may have two complementary values: intangible intellectual property and physical carrier or platform. In some industries, such as digital software, the intellectual property value is higher. In others, such as art, the unit cost of the physical object is higher. In this context, Howkins is referring to a production model based on creativity, on ideas that break with established patterns. As for the link between economy and creativity, he states that: Managing creativity involves knowing, first, when to exploit the non-rivalrous nature of ideas and, second, when to assert intellectual property rights and make one s ideas-as-products rivalrous. These two decision points are the crux of the management process. The good news is that developing countries stand to benefit from a creative economy. In 2008, for instance, emerging economies exported creative goods and services valued at some 176 billion usd equivalent to 43% of those traded by the world s creative industries as a whole that year. What is even more interesting is the fact that these figures were posted in the midst of an international economic crisis, which points to the creative economy as a vehicle for growth and fighting poverty, even under the most unfavorable of economic conditions. Creative economies have, in turn, given rise to digital creative cities like Toronto, San Francisco, Paris, Prague, Dublin, Skopje, Singapore, Wellington and, recently, the Mexican city of Guadalajara in the state of Jalisco. Take Wellington, for instance. In November 2011, New Zealand s capital announced a digital strategy and a three-

19 mexico business the world tips Creative economies have, in turn, given rise to digital creative cities like Toronto, San Francisco, Paris, Prague, Dublin, Skopje, Singapore, Wellington and, recently, the Mexican city of Guadalajara in the state of Jalisco.

20 18 Negocios photos Archive pronged plan of action: to turn the city into a place where the world s most talented people would want to live; inspire the development of ideas and creativity and make it a hub for digital activities. Based on the above, one could argue that the existence of a digital creative city presupposes the existence of a digital city, something that seems simple enough but that implies countless challenges. First off, digital cities have digital citizens who hold down digital jobs in an environment that utilizes digital infrastructure. Yet if a digital city is a real city it will have multiple neighborhoods, markets, cultural areas, residential streets, business districts, industrial corridors and all kinds of infrastructure. The notion of a digital city takes this basic urban approach and applies online technology and infrastructure to jobs, local events, entertainment, healthcare, the environment and everything else that intervenes in a person s life. For a digital city to grow and prosper, it must represent multiple viewpoints, opinions and efforts and be built on the principles of openness, empowerment of its citizens and the presence of actors in both the private and public sectors. Multiplicity is the key word here but it is generally accepted that digital cities are engineered to: Connect the online world to the real world. Emphasize the use of online technologies by local communities. Set up digital offices. Create local events. Create jobs. Develop multimedia products on a large scale. These criteria underline an open platform that fosters innovation and, in turn, helps create jobs. Thus, plans to turn Guadalajara into a digital creative city are key to the development of a creative economy in Mexico. The state of Jalisco leads the way in terms of high-tech industries. According to figures furnished by the National Chamber of the Electronics, Telecommunications and Information Technologies Industry (CANIETI), hi-tech products and services make up over 60% of Jalisco s exports. The state has some 700 hi-tech companies employing 90,000 people, with Guadalajara gearing up to take over as the leading developer of digital media in all of Latin America. For all digital intents and purposes, Guadalajara has effectively joined the list of cities that have taken on the major technological innovations driven by the so-called knowledge-based economy. Cities like Singapore, which has digital urban developments such as One-North and Mediapolis in Singapore; MediaCityUK in Manchester, the new headquarters of the British Broadcasting Corporation (BBC), tailored to meet the needs of the creative and digital industries; and the Digital Media City in Seoul, South Korea, the first high-tech complex in the world for digital technologies, comprising 56 square hectares of state-of-the-art infrastructure, networked offices and cultural centers, all offering incentive plans for investors. Drawing on these international experiences, Guadalajara s digital creative city will Guadalajara s digital creative city will be designed to attract high-level investment in the information technologies and communications sector. We are talking about the largest multimedia project in Latin America, financed with state, federal and municipal funds.

21 business tips ONE-NORTH, Singapore 02 DIGITAL MEDIA CITY, Seoul 02 MEDIACITYUK, Manchester be designed to attract high-level investment in the information and communications technology sector. We are talking about the largest multimedia project in Latin America, financed with state, federal and municipal funds. The Massachusetts Institute of Technology (MIT) will be acting as consultant in the development of the complex, which will create an estimated 25,000 direct jobs at leading global firms specializing in the development of software, video games, movies and mobile devices. Located in the Parque Morelos district of Guadalajara, in addition to a cluster of multimedia companies, this sustainable urban project will also feature a residential area for the people employed by the companies that set up shop there. Among the many advantages Guadalajara offers investors are wide experience in the new technologies sector and human capital to spare. This cosmopolitan Mexican city also shares the same time zone as several major cities in the US. Indeed, proximity to and connectivity with the US were factors MIT took into consideration when choosing Guadalajara over the 11 Mexican cities that competed for certification as digital creative cities. As a member of the global network of digital creative cities, Guadalajara aims to: Facilitate international relations between educational, business and community organizations, which specialize in digital media. Create new business activities between jurisdictions. Foster growth and innovation in existing digital media businesses. Develop innovative digital media activities in each locality. Provide incentives for public and private sector investment in advanced digital technologies and foster ties between jurisdictions. Broaden workforce development and educational opportunities in digital media. Provide technical support for digital media creators. Develop strategies to address rapid changes in digital technologies. Keep stakeholders informed about emerging issues related to digital media, innovation and best practices. Clearly, Guadalajara s digital waybill is a policy of cooperation with other cities in Mexico and abroad, a strategy that opens up the possibility of pooling efforts and reaping the mutual benefits. The fact that 11 cities contended for the status of digital creative city indicates there is huge potential for other Mexican cities to follow in Guadalajara s footsteps. Digital cities aim to use new-generation technologies to build the infrastructure of the future. In a world that is becoming smarter and increasingly interconnected, change, often rapid and unpredictable, is the only constant businesses and governments can count on. That is why it is imperative to accompany this infrastructure with the right incentives and make sure conditions are ripe for digital cities to flourish in the interests of society at large. n *Professor and researcher in the Political and Social Sciences Faculty, National Autonomous University of Mexico (UNAM).

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