Rationale

The clothing industry is one of the leading businesses throughout the world. It is never out of

demands since it is one of the basic needs of human beings. Due to this reason, the competition in the

industry is really stiff from brand name, quality and cost up to promotion(Armada, 2009). Second-hand

clothing has been traded since the Renaissance era, and widely consumed by a majority of the populace

(Han, 2013). Second-hand consumption has been quietly undergoing a makeover in recent years. As part

of this shift, the concept of shopping for second-hand goods has been redefined. Traditionally, consumers

obtain second-hand clothing through adopting from family members/friends or purchasing from providers,

including charity organizations, small boutiques, consignment shops, online retailers and also individuals

selling unneeded clothing items online. Recently, other options such as clothing renting and swapping have

also become more prevalent in providing consumers with secondhand clothing consumption opportunities

(Albinsson & Perera, 2012). Second-hand shoppers are driven by fashion when shopping in second-hand

stores (Ferraro, Sands, & Brace-Govan, 2016). Second-hand shopping is gaining popularity globally. In the

U.S., approximately 1 out of every 5 shoppers regularly visits thrift stores (Tully, 2012).

One of the leading non-profit thrift stores, Goodwill, is operating more than 3,300 stores in the U.S.

(Goodwill, n.d.a) and has expanded globally into 13 countries including South Korea, Venezuela, the

Philippines, and Taiwan (Goodwill, n.d.b). Commonly in the third world country like Philippines, Ukay-

ukay is the best option to buy secondhand clothes with very cheap prices. Ukay-ukay is most commonly

used to refer to the industry that caters to the sale of secondhand imported garments. It originated in Baguio

City, where it has been typically called wagwagan, and was later adapted in other places. The industry first

began with stalls at the sidewalks, and in a span of two years, reports account that the Ukay-ukay business

already generates a gross income of PhP1.2 million, daily. Once in the Philippines, these are then sold at

prices lower than those of "traditionally" imported goods. Since these are used garments, they are sold at

less than half their prices (Cabreza, 2001). Ukay-ukay may be considered a "special" type of good available

in the market. First, it has a different marketing and sale process. Second, how it enters the market is unique.
There are various reasons consumers still buy these goods. One is their low prices when compared to

substitute and complementary goods (Abueg, 2005). Low prices have been a major reason for consumers

to shop for second-hand clothing. Shoppers buy children’s clothing, designer or vintage apparel, and even

wedding dresses from thrift stores, and many look for more mainstream brands at a fraction of their retail

prices (O’Donnell & Hughes, 2007). Low-income people and college students having a relatively small

budget are more likely to shop at thrift stores selling gently used products at lower prices (Cascade Alliance,

2017; Tuttle, 2012). Low pricing of secondhand retail clothes is not enough to convince consumers from

buying it.

Second-hand retailers and trading methods adopt a variety of formats, including vintage

shops/boutiques, consignment shops, thrift/charity shops, online auction sites, flea markets, antique fairs,

swap meets, garage sales, car-boot sales, and classified ads. They are classified as informal, independent,

and fringe markets, but little is known about them (Gregson & Crewe, 2003; Hansen, 2000a; Mhango &

Niehm, 2005). Lack of information has prevented second-hand retailers from formulating appropriate

business strategies and customer service. Therefore, it is crucial to review diverse retailers’ business

management styles, marketing strategies, and challenges (Han, 2013).

This study aims to enhance secondhand retail business or Ukay-ukay by formulating marketing

strategies and management plans. Wherein sellers or traders in Opon, Mercado, Lapu – Lapu City learn

how to market and promote their products through different variations of strategy (e.g. pricing strategy,

product strategy, promotional strategy, markdowns, etc.). This will help the entrepreneurs to understand the

possible aftermath and factors in putting up an Ukay-ukay business so they can impose the proper service

to the Ukay-ukay buyers which leads them to a better sustainability and competitiveness in the future.