E348:📦BUILDING A DIGITAL B2B TRADE PLATFORM FOR LATAM - DESIGN, MANUFACTURING, LOGISTICS
Building the Crossborder B2B Trade Platform for LATAM
Welcome to another episode of B2B Commerce Corner. In this episode, we interview Andres Diaz Bedolla, co-founder and CEO of Yumari. Yumari is an end-to-end digital B2B trade platform focused on the Latin American market, particularly in Mexico and Peru. They handle everything from design and manufacturing to logistics, providing a seamless experience for sourcing products across Latin America. We had an engaging conversation about building this impressive platform that manages trade across countries, languages and various regulations.
The Entrepreneurial Spirit of Mexico
Mexico is a country bursting with entrepreneurial energy. The abundance of street vendors, small shops, and family businesses makes it one of the most entrepreneurial regions in the world. However, despite this vibrant business landscape, there's a notable lack of infrastructure and digitization in the industrial sector.
The Genesis of Yumari
Andre’s journey began with a deep dive into the successes of Alibaba and China. Inspired by how Alibaba's digital platform helped China diversify its export markets and lift millions out of poverty, Andre envisioned a similar transformation for Latin America. He observed that while Mexico is a major exporter, its producers and manufacturers often don't export directly. Instead, middlemen known locally as 'coyotes,' handle exports capturing much of the value.
Realizing that existing platforms didn't meet the specific needs of Latin American businesses, Andre left Alibaba to create Yumari. This platform aims to solve three key issues: providing accurate information about the best factories, quoting logistics to offer DDP (Delivered Duty Paid) prices, and managing secure transactions.
Yumari's Unique Approach
Yumari focuses on solving supply chain problems for global businesses. They don't just digitize factory listings; they proactively connect North American brands with suitable Mexican manufacturers. This approach has allowed Yumari to grow rapidly, achieving cash flow positivity within six months and doubling their Gross Merchandise Volume (GMV) each month since launch.
Unlike traditional brokers, Yumari handles every aspect of the supply chain. They offer end-to-end services, including product development, quality control, logistics, customs clearance and fulfillment. This comprehensive service model has made it easier for brands to shift their manufacturing to Latin America without any hassles.
The Impact of Nearshoring on Mexico's Economy
The nearshoring trend, where companies move their manufacturing closer to home, has significantly impacted Mexico. The demand for the Mexican peso has surged, leading to the emergence of the 'super peso.' While a strong peso is generally seen as a positive indicator of economic health, it raises the cost of exports, potentially affecting Mexico's competitiveness.
Andre emphasizes the need for Mexico to learn from China's playbook. During China's rapid industrialization, they implemented policies that required foreign investors to partner with local businesses, hire local workers and transfer technology. Mexic too, needs public policies that promote trade and investment while ensuring that the benefits trickle down to local manufacturers and communities.
Structural Challenges and the Way Forward
Mexico's complex regulatory environment presents both opportunities and challenges. While the country offers considerable freedom, its bureaucracy can be a hurdle. The lack of a federal agency for trade promotion and investment regulation is puzzling, given Mexico’s significant export capabilities. Creating such an agency could streamline processes and attract more foreign investments.
Yumari’s approach is to focus on immediate business opportunities rather than trying to digitize the entire supply chain at once. This strategy has allowed them to meet market needs quickly and efficiently.
The Future of Yumari
Yumari aims to expand its offerings beyond the fashion industry. The next verticals include furniture, beauty and healthcare, food and beverage and office supplies. Each of these sectors has its own unique complexities and Yumari is well-positioned to navigate them.
One of the standout features of Yumari is its translation service. Many Mexican manufacturers don't speak English, making effective communication a challenge. Yumari bridges this gap, ensuring that tech packs and specifications are accurately translated to facilitate seamless production.
Conclusion
Yumari is setting the stage for a new era of B2B trade in Latin America. By addressing the specific needs of both manufacturers and global brands, they are making it easier to do business across borders. Their end-to-end services and focus on digitization are helping to unlock the full potential of Latin American manufacturing.
Andre is passionate about making Yumari a lasting force in the industry. With a clear vision and a strategic approach, Yumari is poised to become the go-to platform for B2B trade in Latin America.
Stay tuned as we follow Yumari’s journey, and watch how they revolutionize the way businesses connect and trade across borders.
To learn more, check out the related THE ECOMMERCE EDGE Podcast episode below: