Estimated reading time: 8 Min
Panam It is a triumph of Mexicanism. There is no other way to understand it. It is a 100% Mexican brand in everything: its philosophy, its raw material, its intellectual talent, its production and even its logistics.
This company, which reached 60 laps in the sun this year, is a benchmark for quality and Mexican style with which at least three generations have grown. His iconic sneakers, the 084, have walked the streets of Mexico City, Monterrey, Tijuana, León, Puebla and all over Mexico.
Now, the brand is expanding to the United States and soon, to Latin America. And it does so exploiting with a lifestyle concept that leads them to create their first collections of clothing and accessories.
Panam is committed to one goal: to be Pan-American. And in this it has Cubbo as its great logistical ally. To learn about her story, we spoke with Karla López, Manager of Panamanian Ecommerce.
Cultured and Urban
Frank: Tell me a little bit about the history of Panam, because I understand that they have been in the Mexican market for many years, right?
Karla: Yes. Our company was founded in 1962, just this year we celebrate our 60th anniversary. It all started with footwear and for three years we have been venturing into the clothing and accessories category, where we have also been quite successful.
Frank: And what characteristics do you consider to define Panama?
Karla: Our brand is characterized by being urban and cultured. And those are the main values that Mexicans have recognized in Panam and I think that's precisely why it happens that the user who consumes this product is 100% loyal to the brand. Precisely because it is rooted in our Mexican roots and because the consumer notices that it is a 100% Mexican and high quality product.
And when I say 100% Mexican, I mean both the hands with which it is made and the material with which it is made.
Frank: Why do you say it's a cult brand?
Karla: They identify us a lot with products that make sense with their daily lives and this has a lot to do with music, with everyday life, with their way of life. And when I mention cult, I also mean that the people who buy from us have given a value to our sneakers, to our clothes, as collectibles. A product that is also very close to your heart.
And they have recognized the effort we have made to turn our products upside down.
Frank:What difficulties have you had? Because I'm sure that not everything has always come out to order.
Karla: No. Well, look, in the 90s we had the biggest challenge, which was when international brands began to arrive in Mexico and became a direct competition for us. But regardless of that, we managed to turn it around and we have had quite deep brand recognition both in the Mexican market and in the Latin American market. It has been incredible.
We purchased our raw material in León and the plant is Cuautitlán Izcalli, it is a 100% Mexican product made 100% in Mexico
Frank: And when did the first pair of sneakers arrive on the streets of Mexico, of Panamanian tennis?
Karla: The first pair of sneakers came out on August 2, 1962, and that first model became our iconic model and the winner is the 084. This is the product that has been and will continue to be the top of our collections. We have currently developed new tennis designs, to reach new and younger markets, new generations who want to try high quality Mexican products with our DNA.
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New products, new markets and new partners
Frank: When do you decide to expand from sneakers to the rest of the fashion world?
Karla: It was all a gradual process. Precisely when international brands began to arrive, we realized that we had to evolve and in 2017 we bet that the user of our sneakers needed to complete their outfit. And that's when the need and the idea came up for us to create a collection of clothing and accessories for the brand, which would maintain that urban and cultured look that characterizes us.
Frank: How many collections do they have?
Karla: Today we have already launched four collections and it has worked very well for us. These collections have been launched at our points of sale and we currently have more than 200 in all of Mexico.
Frank: These points of sale, I understand that they are physical stores. Are they all their own stores?
Karla: No. About 33 are our own stores and the rest are franchises that we have around the country.
Frank: And when do they decide to start building the ecommerce? And what logic is behind this?
Karla: In 2019, we began with the concern of having a ecommerce. We wanted to be able to include ourselves in the world of ecommerce and it was just a year before Covid. Which was great. Our first page, I must admit, was quite small in terms of product and catalog because we don't know a lot about the world of ecommerce. And well, just as you can imagine, it was in the midst of a pandemic that it emerged.
Frank: And how did they come to Cube?
Karla: And speaking specifically of Cubbo I found them circumstantially. We had to turn the page 180 degrees because we knew that it was not optimized for the market and that consumers' needs had gone from getting shoes on physical media to searching for them on a website.
And it was precisely by browsing online that I found Cubbo, specifically Josu, with whom I had contact from the beginning and we were convinced that it was the ideal project and the ideal logistics to achieve the objectives for the Panamanian ecommerce.
52% of people who go to physical stores don't follow us on social networks or buy from us on the ecommerce. So we still have a super important market there, which is a product of tradition and recognition of Panam.
Frank: But the web is growing a lot too isn't it?
Karla: Yes. The growth that the online page is showing is quite powerful, in fact we grew 114% from 2020 to 2021.
Frank: And has Cubbo helped them with that?
Karla: Of course the work you have done Cubbo has been key: being able to have dedicated customer service for us, delivering products to all customers inside and outside of Mexico, that has been the added value of our ecommerce to be able to showcase our brand.
We have the first contact with the customer through our ecommerce which is developed in Shopify. Pero Cubbo you already have the plug-in to have the direct connection and after the customer places the order, Cubbo takes care of everything.
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Women's empowerment
85% of the workers in the factory of Panam they are women. The company has always been committed to women's employment. And the company protects the work-life balance of the women who make the products of Panam.
Frank: And why do they choose? Shopify?
Karla: We chose Shopify because at the beginning we didn't have much knowledge of the world of ecommerce and we worked with another company that was dedicated to selling and delivering. We lost a lot of important customer information there, because we didn't know the user, what they liked, or what they were looking for.
That's why we chose to move to Shopify to be able to control that data from our customers and because, in addition, the integration with Cubbo it's excellent.
Frank: Have I been honest with you? Cubbo at the operational level? Because that's usually key.
Karla: Yes, precisely Cubbo he has had incredible transparency and a connection with us to be able to do all the synergy we need for Panam.
Frank: Describe the integration with Cubbo so that someone who doesn't know about this can get an idea of why it works and what it provides
Karla: Of course. A user buys in our ecommerce, I received the information, your details and the order. At the same time, Cubbo is now integrated into our online store and you receive the order and address information. As well as the shipping mode that the user selected. This is all automated. And this advantage is ideal. I have to say that this was a development that Cubbo he did and that at the beginning he didn't have. And now it has converted to Cubbo on a super complete platform.
After this part, the customer service area of Cubbo speak directly to the user if there are any problems with the delivery or if the zip code is incorrect or if something should happen. Cubbo attends to and fully monitors logistics and is attentive until the customer confirms that he has the product in his hand and is completely satisfied.
Frank: Where do they currently sell?
Karla: Our shipments reach all of Mexico and the United States. We are already planning expansion to the rest of Latin America because they have asked us for it a lot.
Frank: And for the United States how do they do the Fulfilment?
Karla: It does everything Cubbo from its center in Mexico City. And it goes straight from here to the United States. This was achieved through some negotiations that we did between Cubbo, international packages and Panam.
Hybrid growth and expansion in Latin America
The heart of Panam is to be an urban and cult brand. A concept that fits very well with all Latin American youth. And for this reason, the brand is actively seeking to expand in the coming years to the rest of the continent.
A complex battle in which Panam combines growth in physical stores with strengthening its ecommerce.
Frank: What are your plans for the next 3 to 5 years?
Karla: The objective in ecommerce For 2022 it is to double the sales already achieved from 2020 to 2021. In the case of physical stores, what is vital for us is to increase at least 10 more stores in Mexico City.
Frank How did they manage to create the hybrid model between franchise and own store?
Karla: As our own stores, it was sometimes difficult to expand to so many places. That's where the dynamic of having a franchisee, a partner who can replicate the store elsewhere, came into play, and that has been an important push.
Frank:What has cost them the most?
Karla: What has cost us the most is the issue of accessories, precisely because many tennis companies have the same concept of expanding into fashion and accessories. In that sense, backpacks are what have cost us the most, because in addition to the pandemic issue, there was no proper school season. But in the end, we have also managed to make the backpack well received.
Frank:What advice would you give to a Mexican entrepreneur who wants to start building their brand?
Karla: You have to be aware of what you want, consistent in what you need and have absolute confidence both in your project and in the country in which you undertake. Things always happen, but they take time.
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