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Competitiveness Viability Economic Benef PDF
Competitiveness Viability Economic Benef PDF
Competitiveness Viability Economic Benef PDF
1 2 3
Judy Ann P. Valdez , Beverly Rose L. Acosta , Bonifacio V. Ramos
1 2 3
Student Researcher, Student Researcher, Faculty Researcher
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valdez_judyann@yahoo.com, bevyrose@yahoo.com,
3
bonifacioramos50@yahoo.com
Cagayan Valley Computer and Information Technology College, Inc.
Abstract
Ukay-ukay, the art of rummaging second-hand stuffs, is
wide-spread in the Philippines: a very trending act of shopping that
made a strong impact on the textile and clothing industry. The tre-
mendous growth of this business phenomenon is observed in San-
tiago City. It effected changes on the shopping practices, lifestyle of
the masses, and supplemented the existence of the textile clothing
industry. The presence of such business activity in the city gained
attention from the different sectors – ukay-ukay entrepreneurs,
consumers, franchised clothing traders and government. The com-
petitiveness and viability of the ukay-ukay business in the long run
is an important concern. Using a survey questionnaire to gather
data from 30 purposive and 100 random samples of entrepreneurs
and customers, respectively, this descriptive study aimed to deter-
mine the competitiveness, viability, economic benefits and difficul-
ties faced by the business as basis for formulating interventions to
uplift the business. The study found out that ukay-ukay is not as
preferred as department stores and other stores, but could be
competitive based on the (a) consumers’ evaluation of the stuffs as
passing the criteria on durability, prestige, originality and unique-
ness, low pricing, and desiring to continue patronizing the
ukay-ukay stores, (b) entrepreneurs’ perceptions on its profitability
and long-term viability, high prospects of continuing their business
in the next 5 years and becoming more knowledgeable while en-
gaging in the business. The entrepreneurs’ leading problems are
unsteady sale and the customers’ difficulty in rummaging while
their needs include increasing their capitalization and making their
stalls more spacious and comfortable. The problems encountered
by customers of the ukay-ukay business do not significantly affect
the economic benefits they derive.
Keywords: Competitiveness, Viability, Economic Benefits,
Ukay-ukay Business
1. Introduction
The clothing industry is one of the leading businesses throughout
2 Valdez, J.A.P., B.R.L. Acosta & B.V. Ramos. Competitiveness, viability, eco-
nomic benefits and difficulties of the ukay-ukay business
see this kind of selling even in shopping malls in big cities in the
Philippines. However, the things one finds at real ukay-ukay stalls
along dusty side streets and often crowded alleys can be surprising.
In ukay-ukay stalls, one can find expensive imported items like Ar-
mani pants, Louis Vitton bags, Charles Jordan shoes, Burberry bags,
Levis jeans and Nike shoes – all genuine, original brands at 1% of
their real prices. For example, an original Armani costing Php
20,000 would only cost for Php 200 at the ukay-ukay. More often
than not, one can find these items slightly used by their former
owners.
When this kind of clothing store first appeared in the market, it was
not so much noticed by consumers and there were only a few
number of this clothing store. As time went by, together with life-
style of Filipinos, ukay-ukay became numerous anywhere in the
country. As a matter of fact, Bench, Bonjour de corps and a lot
more are readily available in ukay-ukay stores in a high demand.
This is just a proof that ukay-ukay somehow meets the standards of
Filipinos when it comes to clothing. People who patronize
ukay-ukay have varied reasons and belong to various social classes.
Most patrons belong to the low and middle classes whose reason is
affordability. On the other hand, some patrons belong to the high
class whose reasons are originality, uniqueness and quality. These
are the factors that justify the booming of ukay-ukay business na-
tionwide. Some may not yet be aware but the growth of ukay-ukay
really seemed to be indispensable especially now that most Filipi-
nos experience economic downfall and low purchasing power. Aptly,
consumers would definitely search for products like clothes that are
affordable that meets somehow their standards.
4 Valdez, J.A.P., B.R.L. Acosta & B.V. Ramos. Competitiveness, viability, eco-
nomic benefits and difficulties of the ukay-ukay business
tively similar with the brand new garments and accessories that
may be bought in relatively high-class stores and shopping malls [9].
He also explained that Philippine-made textiles and garments are
said to be 30% more expensive than their counterparts in the mar-
ket. This processing mechanism is attributed to the inefficient local
production and technology processes as well as their relatively low
productivity.
Today, the ukay-ukay grew from just clothing to bags, shoes and
CVCITC Research Journal, 1(2): 2014; ISSN: 2362-9029 7
high; 2 (1.50 – 2.49) = low and 1 (1.00 – 1.49) = very low. Pearson-r
was used to test significant relationship among the business’ at-
tributes: viability, competitiveness, economic benefits and prob-
lems encountered. Statistical computations were made through
SPSS.
3. Results and Discussion
3.1 The Attractiveness of Ukay-ukay Business
Table 1. Mean and Ranks of Customers’ Preferences for Ukay-ukay,
Market Stall and Department Store
Customers’ Preferences Frequency Rank
Ukay-ukay Store 21 3
Market stalls other than Ukay-ukay 29 2
Department Store 50 1
Results in Table 7 state that low price is the leading benefit that
customers get from ukay-ukay stores. The other benefits related to
the first are savings and discount. Savings and discount imply that
12 Valdez, J.A.P., B.R.L. Acosta & B.V. Ramos. Competitiveness, viability, eco-
nomic benefits and difficulties of the ukay-ukay business
the significance level set forth in the study. This means that there is
no significant relationship between preference and economic bene-
fits. It can be said that customers’ considerations in terms of bene-
fits is independent with their preference criteria and vice versa.
This means that the benefits are foremost in the minds of customer.
Therefore, the criteria on durability, prestige, originality and
uniqueness are just their secondary considerations.
Table 10. Preference and Attraction Correlated with Economic
Benefits
Indicators Economic Benefits
Low Savings Discount
Price
Preference for ukay-ukay Pearson-r .129 -.140 -.004
Sig (2-tailed) .202 .165 .966
Durability of Goods Pearson-r -.006 -.057 .054
Sig (2-tailed) .957 .575 .592
Prestige of Goods Pearson-r -.062 -.066 .118
Sig (2-tailed) .539 .511 .244
Originality of Goods Pearson-r -.162 .054 .111
Sig (2-tailed) .108 .596 .272
Uniqueness of Goods Pearson-r -.037 -.036 .067
Sig (2-tailed) .711 .726 .508
Citation: Valdez, J.A.P., B.R.L. Acosta & B.V. Ramos (2014). Competi-
tiveness, viability, economic benefits and difficulties of the ukay-ukay
business. CVCITC Research Journal, 1(2), pp 1 – 15.
CVCITC Research Journal, 1(2): 2014; ISSN: 2362-9029 15
Author’s Biography
JUDY ANN P. VALDEZ
Judy Ann P. Valdez is a graduate of Bachelor of Science in Business
Administration major in Marketing Management. She finished her
college degree on top of her class in 2012. Due to her distinction,
she immediately landed on a job after graduation: from an Admin-
istrative staff of an automotive company a policy service processor
company which is affiliated with Alliance United Insurance Services
(AUIS), the largest automotive insurance company in the US. To
prepare her for greater works, she had her English Proficiency for
Customer Service. At present, she is in a stride of accomplishing her
goal for an international venture.
BEVERLY ROSE L. ACOSTA
Ms. Beverly Rose L. Acosta is a graduate of Bachelor of Science in
Business Administration major in Marketing Management. At pre-
sent, Ms. Acosta is one of the marketing professionals of Aljay Cor-
poration in Santiago.
DR. BONIFACIO V. RAMOS
Dr. Bonifacio V. Ramos is an accomplished educator, educational
manager, researcher, and Quality Assurance evaluator and accredi-
tor. Having been to both instruction and research for several dec-
ades now, Dr. Ramos had been the editor of the Research Journal,
Partuat and the Journal of Northern Luzon; all of which are journals
of Saint Mary’s University. At present, Dr. Ramos is the Vice Presi-
dent for Administration and Research Director at PLT College,
Bayombong, Nueva Vizcaya. He is also a member of the Education
Panel and Board of Directors of Nakem Conferences Philippines and
Nakem Conferences International. Added to these laureates is his
being a national accreditor and evaluator for Quality Assurance
particularly the CHED-ISA.