Mexico’s Fashion Wholesale Revenue Falls 9.4% in December

Mexico's fashion wholesale sector faced a challenging close to 2024, with real revenues dropping 9.4% in December, according to the Monthly Survey on Commercial Enterprises (EMEC) by the National Institute of Statistics and Geography (INEGI). The decline reflects reduced wholesale trade in textiles and footwear, driven by shifts in consumer demand.

The INEGI report also revealed a 2.2% decrease in employment within the fashion wholesale sector, highlighting structural adjustments to changing market conditions. However, real average wages rose by 19.8%, indicating higher compensation for the remaining workforce despite declining revenues and employment.

Conversely, the retail fashion sector showed resilience. Real revenues from stores selling textiles, jewelry, accessories, and footwear increased by 2.4% compared to December 2023, demonstrating steady consumer demand. Despite this growth, challenges persisted. Real wages grew by 3.4%, but total employment in retail fell by 2.3% year-over-year.

Shifts in consumer behavior have influenced these trends. Shoppers increasingly seek personalized experiences and products aligned with their values, pushing retailers to adapt more swiftly than wholesalers. Additionally, the lasting impact of the COVID-19 pandemic has reshaped business strategies, with digitalization and e-commerce driving growth in the retail segment.