Success Story

HERSAN: Adapting Production to U.S. Regulations for a Smooth Market Entry

León, Guanajuato, Mexico

Headquarter

Turnover

Road Signage

Sector

Market Entry Strategy

Challenge

International Growth Strategy

ALTIOS approach from the first report we were given was an awakening to witness that we have the potential to expand in the U.S market, with innovation and a solid understanding of the Regulatory Framework that we had not detected.

Luis Hernandez

Managing Director, HERSAN Mexico

Challenges

HERSAN, a company with more than six decades of expertise in the production of road signage, has become a recognized leader for its commitment to road safety, innovation, and environmental sustainability.
When aiming to penetrate the U.S. market, HERSAN was confronted with strict regulations. Among these challenges was the requirement to manufacture a minimum percentage of its products domestically. This, combined with navigating a competitive and protectionist market, meant that the company had to rethink its approach to market entry.

Solutions

ALTIOS conducted a comprehensive study that detailed U.S. regulations, competitors, and potential opportunities.
This research enabled HERSAN to adapt its production strategy and partner with local manufacturers to meet regulatory demands. The company has already secured certifications in states like North Carolina and New Mexico, with plans to expand into more areas.

Results

HERSAN successfully entered the U.S. market. Beyond compliance, the company reinforced its commitment to sustainability, utilizing recyclable materials and organic pigments in its products. This approach has helped position HERSAN as an innovative, eco-conscious brand.

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Tips and Best Practices

Master Local Regulations: Collaborating with experts who can provide detailed insights can help avoid costly errors.

Adjust Operations for Local Demands: Adapting production processes to meet local regulatory requirements is often necessary when entering new markets. HERSAN successfully altered its manufacturing approach to meet the percentage of U.S. production requirement, a move that was instrumental in securing its foothold in the market.

Build Local Relationships: Establishing strategic partnerships with local players is a proven strategy for overcoming market entry barriers. HERSAN’s collaboration with local manufacturers enabled them to meet regulatory requirements and better understand the U.S. market.

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