Panama, open to foreign investment

In the history of Panam, external investments had not been managed, but due to the growth we have had within the industry, today we do see ourselves in this opportunity to open the doors and receive and analyze proposals.”

Paola Reglín, director of marketing and communication of Panam.

After remaining as a family company and with its own investments for 60 years, Panam is ready to open the door to external investments and has even received proposals from some investment funds. The capital injection sought by the company would be used to expand its factory in Cuautitlán Izcalli and increase its production, which currently amounts to 15,000 pairs of sneakers per day.

“Today the company is ready to accept investment and capital proposals. We have been a very familiar company and until now all the investment is our own. In the history of Panam, external investments had not been handled, but due to the growth we have had within the industry, today we do see ourselves in this opportunity to analyze proposals”, reported Paola Reglín, director of marketing and communication at Panam.

During the event for the 60th anniversary of the brand whose name means Authentic National Mexican Product, Reglín pointed out that, in addition to seeking investment, the company has a plan to add 50 new stores in 2023 to the 220 units with which currently count. In addition, they recently ventured into the department store format such as Liverpool, where they are already present through corners.

Another of the company’s most ambitious plans is to return to the European market where they were already present in 2015, through commercial allies (shoe stores). “We left Europe because it did not fit our business model and because of export costs. The product became more expensive and it was no longer profitable for us”, explained Reglín. “We are rethinking the strategy for that market.”

Panam has four stores abroad, specifically in Paraguay, El Salvador, Guatemala, and the US. In the latter country they also participate through their e-commerce distribution network that they implemented through the pandemic and that already represents 20% of their total sales. The company, which has maintained a 30% growth in sales, is committed to continuing to grow in the urban fashion sector, through its line of clothing and accessories.

Reinvent a brand

Panam was born in 1962 with the aim of serving two types of people, mainly: students and workers. “For a long time, if we looked at schoolyards and factories, we could see the emblematic model that is the “084 Champion”, navy blue with white”.

However, after the commercial opening in the early 1990s, the company faced competition and the arrival of international brands.

“Panam had to rethink its strategy and what it did was take a step back, put the pieces of the puzzle together and ask itself what it wanted to do: compete directly, or did it want to continue gaining ground only on the sales side. And he decided to get into color combinations with his 084 model to compete with the big brands. There are over 900 color combinations. And that’s when the brand reinvented itself and decided to go big,” Reglín said.

The company will seek to strengthen its strategic alliances, to continue making collaborations, especially with content creators that bring it closer to generations Z and Millennials.

“We want not only to be a nostalgia brand, but a famous brand that the new generations also champion and love,” the directive pointed out.

karina.hernandez@eleconomista.mx