The Energy Reform has diversified the Mexican fuel market. In this week’s interview of the week, Manuel Filizola, CEO of OXXO GASS talks about the challenges new entrants face to attract customers. OXXO GAS has a network of 307 gas stations in the states of Nuevo Leon, Coahuila, Guanajuato, Chihuahua, Aguascalientes, Queretaro, Jalisco, Quintana Roo and San Luis Potosi
Q: What potential does OXXO GAS see in the Mexican market and what role will you play in it?
A: We see huge potential for growth since we strive to provide the best services and we have a strong sense of commitment toward our clients and employees. We serve around 13 million customers on a monthly basis at the more than 450 gas stations we operate across 16 states in Mexico, highlighting our service values at every single one. The Energy Reform opened new opportunities to boost our growth after more than 20 years in the market, consolidating our vision for far-reaching expansion that will see us grow by around 30 percent annually. Today, there are around 11,000 service stations in Mexico, a number we deem low when compared to the country’s size and population. We see big room for growth but we are also interested in taking it step by step, mapping the areas where our services might be needed, always taking into account the logistics needed to ensure a systematic and organized expansion.
Q: How is OXXO GAS’ logistics experience filling existing gaps in the distribution channels in Mexico?
PEMEX has most of the storage and distribution infrastructure, so OXXO GAS relies on PEMEX to undertake most of the logistics processes. We are analyzing the possibilities of mid and long-term investments in storage and logistics, so we can improve our competitiveness. Our philosophy is to invest in any type of service that can improve our customers’ experience and we can count on the backing of FEMSA’s branding to achieve that. We have a strong presence in the northern and northwestern regions of Mexico, and we have grown a great deal in the Bajio region. We are focusing on growing in the central and western regions of the country, such the State of Mexico and Jalisco. Our renowned and solid brand is the asset that will lead the way to that target.
Q: How does OXXO GAS add to talent and community development in the areas in which you are based?
A: We have 6,500 people working with us. To meet our expansion objectives, we will require even more people. We will continue hiring new talent into our different business lines. We are aware that our human talent is key to maintaining our leadership in the market and we invest heavily in human capital. We also encourage lineal movement within the company so people can feel motivated to grow professionally. In that sense, we offer training programs, scholarships and courses for our staff and their families, mainly for those working at the stations. In line with FEMSA’s philosophy, at OXXO GAS our goal is to generate social, economic and environmental value in the communities in which we are based; our stations foster commercial activity and we employ a good number of people there. We also plan to increase our business and commercial lines so we will need to further increase the capacity of our human talent and we are eager to continue investing in our people.
Q: How will OXXO GAS grow in 2018?
A: This year, we plan to open 135 new gas stations and put them all under the umbrella of our new branding. In line with our client-oriented service strategy based on our “liter by liter” policy that guarantees customers receive every drop of fuel they pay for, we will continue to ensure fair prices and we will continue innovating with attractive promotions. One of our objectives is to transform gas station visits into a full experience where our customers can enjoy the best service and acquire top-quality products. This year will be key in achieving that goal.
This is an excerpt from the 2018 edition of Mexico Oil and Gas Review. If you want to get all the information, plus other relevant insights regarding this industry, pre-order your copy Mexico Oil and Gas Review or access our digital copy.
Don’t miss out on your chance to rub shoulders with the industry’s leaders at the launch of the new edition of Mexico Oil and Gas Review at Mexico Oil and Gas Summit 2019, at the Sheraton Maria Isabel Hotel in Mexico City this July 17 – 18! Register here!