Study of market for retirement housing in Mexico for Cemex

Active Living International was retained to provide strategic guidance to Cemex, the world’s second largest cement company. The purpose of the study was for Cemex to understand the growth potential and depth for the seniors housing industry in Mexico. The ultimate goal for Cemex was to share these data with its customers and thus sell more product for a potentially significant market.

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The client, CEMEX, is a long term industry leader in cement products worldwide.

At the time of the engagement CEMEX was the second largest such firm in the world.  The corporate office group responsible for defining the strategic plans for areas of growth hired Active Living International to help determine the depth of the market.  The ultimate goal was for CEMEX to share these data with its clients and thus sell more products for a potentially new and burgeoning real estate market space.

Active Living International produced a benchmark study that defined the potential for retirement housing and the viability of construction of retirement communities throughout the country.

There were four objectives to accomplish:

1.    On the supply side of the equation—Analyze the existing types of seniors housing options in the U.S. and Mexico and describe the characteristics of the retirement housing options in the US including:  type of houses, services, facilities and costs.

•    Describe the characteristics of the retirement housing options in the US including:  type of houses, services, facilities and costs.
•    Describe the characteristics of the retirement housing options in the Mexico, including: types of houses, services, facilities and costs.

2.    On the demand side—Provide accurate statistics as to the potential size of the market and present the socioeconomic distribution of the retired Americans/Canadians in the US and the retired Americans/Canadians in Mexico. Develop preliminary definitions of the characteristics of the target market for retirement living.

•    To define the market size of the retired Americans/Canadians with the potential to retire in Mexico.
•    To define the market size of the retired Americans/Canadians in Mexico that has enough buying power to retire in these kind of communities.
•    Economic, demographic and geographic profiling of the potential client groups.

3.    Define the Value Proposition for the client

•    To define the retirement housing characteristics including: housing types, site characteristics and services.
•    Develop the psychographic profiles of the customers (sometimes the resident, sometimes the adult children) and the client (the residents themselves).

4.    To define an implementation plan

•    Create a detailed set of materials that describe the operational programming requirements for several types of seniors housing models.
•    Develop a list of financial models necessary to measure financial success of a project.
•    To define resources needed to get the business started and possible financial supports.
•    Critical analysis of infrastructure needed to provide and serve the market.

The Active Living International study was determined by Cemex and the banking industry in Mexico as the seminal study of the vacation and retirement housing market and the study was distributed by Cemex to their key accounts throughout the country. Subsequently, Cemex commissioned Active Living International for two additional engagements.