CHAPTER 1

INTRODUCTION

1.1 Background of the Study

An ukay-ukay is a Philippine store wherein secondhand apparels such as clothes, bags, shoes
and other accessories are being sold at a very cheap and bargained prices. Items sold at the
ukay-ukay are commonly shipped from different countries. The term ukay-ukay is derived from
the Filipino verb hukay or halukay, which means "to dig" or "to sift through" respectively. It is
synonymous with the verb wagwag, an act of dusting off a piece of clothing by taking hold of one
end and snapping it in the air, and shake the item chosen to dust it off; and SM,
meaning segunda mano (secondhand), which is also a pun on the foremost Philippine retail
chain SM.
The first ukay-ukay was believed to have been founded in the early 1980s in Baguio. When
calamities frequented the Philippines during that year, the Philippine Salvation Army would send
secondhand garments and other goods to the refugees and victims as humanitarian assistance to
the victims of the calamities.[2][3][4] Soon enough, the shipped goods, upon piling up, were bought
in bulk by traders and sold to the public at significantly low prices. They used to market it to the
low-income bracket, but following ukay-ukay's increase in popularity, relatively richer customers
who seek low-priced branded goods patronize ukay-ukay stores. Before ukay-ukay stores
became famous, the sellers started-out from just displaying boxes beside the roads filled with
secondhand stuff and you literally have to dig in the piles of fabrics, shoes, and random stuff and
no one will help you. If you will visit Baguio City, you'll notice that they close the Session Road
from 10 p.m. until midnight for ukay-ukay sellers and buyers and still keep the ukayan (digging in)
tradition very much alive. Clothing is one of the elementary necessities in life, in various parts of
Mindanao even the most basic needs are out of reach for the underprivileged, looking for good
value is a daily cause. Getting some decent attire to wear is very difficult for a low income family,
for them ukay-ukay is the answer to their problems, at least they can buy

a fair outfit for any amount of money in hand. But recession has gained its foothold in today's
economy, ukay-ukay is not exclusive to the less fortunate anymore, even the most stylish
fashionistas are scrounging into the piles of clothing, looking for that perfect vintage piece for next
to nothing. However, as well for the poor and the prosperous, poking into that pile of hand-me-
down fashion trying to find that something to-die-for comes with a certain price. Vendors are

pouring some kind of disinfectant on their already musty-smelling merchandise that gives it a
striking stink, the place often has a foul odor that whiffs like an oversized mothball. Shoppers

1
 must be capable to withstand this migraine-causing scent, they need a lot of patience and also
should be absolutely persevering and relentless in their rummage from stall to stall for timeworn
threads, one will be never alone in it's search for that unique item.

Some bargain hunters, consider it like fun when hauling through heaps and racks of passed down
textile that is not always in the best condition and clean. For a few it is the equivalent of treasure
hunting, for many it is an ongoing quest for affordable clothing and an inevitable part of common life.
Browsing through your local thrift shop has not only financial advantages, you can get authentic
pieces that are hard to find anywhere else. Because there will be less production, it is
environmentally friendly and it is humanitarian since it reduces child and slave labor in the
manufacturing countries. Ukay-ukay is big business, many outlets and makeshift-stalls can be found
all over the nation, there is no city, municipality, barangay or barrio without it and any local public
market or village fair will not be complete if it does not have an "ukay-ukay" section. The barter has
also provided a viable livelihood to a large number of families, with a minimal amount to invest they
started off retailing pre-loved regalia in their own yard or house trying to turn trash into treasure. Over
the years this Segunda Mano phenomenon became socially accepted and very popular to scores of
cash-strapped Filipinos from all walks of life and has risen from a local market operation into a
thriving trade. It offers fashion minded individuals the opportunity to shop for signature clothes with a
rock-bottom bill.

1.2 Statement of the Problem

Despite the spread of ukay-ukay stores, the business of second-hand clothing is still lucrative in
sizeable cities and towns all over the country. If you want a steady stream of income with a fast
turnover for you or your family in the Philippines, then an ukay-ukay business is a profitable choice.

One of the advantages of ukay-ukay is that the pricing totally depends on the entrepreneur. Of
course, competition with nearby ukay-ukay shops and branded clothes shops can dictate the pricing
of clothes. But with freedom in pricing, an entrepreneur can price the goods so that he or she will not
incur a deficit.

2
Profit is also quick as it is dependent on a per-sale basis. Entrepreneurs must be ready to negotiate
wisely with customers who haggle - a common practice in ukay-ukay stores. Php10-20 off is
reasonable to retain customer loyalty, but entrepreneurs should only give in if the discounted sale will
still lead to a profit.
Expenses for security and upkeep of an ukay-ukay business highly depends on overhead rates like
rent, electricity and store assistants and other essentials like shelves, racks, hangers, and a security
system.

A disadvantage of owning an ukay-ukay is that it takes time and a tremendous amount of patience to
run the business. Acquiring bales, sorting through mountains of clothing, pricing and finally preparing
them on the racks will require effort. Knowing how to price the goods to be able to attract buyers and
still make a profit can be mentally exhausting.

In addition, pricing and restocking is highly volatile since sales depend on the season. This makes
ukay-ukay a business only for entrepreneurs who can provide direct and hands-on control of the flow
of labour and items. An ukay-ukay is not recommended for entrepreneurs who are based abroad.
However, they can advise their families back home to run if they are interested.

Since ukay-ukay stores already have an edge over branded and designer clothes stores due to price,
there is almost no need to market the store. However, ukay-ukay entrepreneurs also have to accept
that Filipinos have already attached certain beliefs surrounding the ukay-ukay like issues on health
and quality. There are simply Filipinos who are into ukay-ukay wares and Filipinos who will not even
attempt to step into a store.

As for customers, the ukay-ukay is simply here to last unless calls for stricter policies are put in place.
There is a law that says it is illegal to import second-hand goods in the Philippines. However, there is
no law as of yet that covers businesses trading second-hand goods, which some Filipinos still believe
is a practical choice.

3
If health is one of the major concerns why these used clothing is prohibited, then why the Bureau of
custom is donating these as relief goods during the times of calamities like floods and typhoons.
BAGUIO CITY, Philippines—From Levi's to Giordano, from Guess to Ralph Lauren, from signature
items or not, this place is a melting pot of all brands of clothing. It's not as big as shopping malls but
it contains some stuff that you can hardly find in any common shops out there. Thrift shop as it is
known to be but one might tend to spend more just to take home a unique find.

Ukay-ukay, as we call it here in the Philippines was said to derive its name from the Filipino
word, halukay, meaning to dig or to look for something. Some call it “UK” for short. Ilocanospeakers
are used to call it wagwagan. As early as the Spanish occupation, these shops were
called segunda mano (second hand) and I guess until now, everyone can still relate to its meaning. In
Baguio City, like anywhere else in the Philippines, ukay-ukay shops are everywhere. This place is
renowned not just the country's summer capital city but also as the capital of second hand clothing
now.

If you walk along Harrison Street, Session Road or just around the city's dry market,
you'll see these thrift shops scattered almost in every corner. Locals and visitors alike go flocking
around these areas like ants looking for the sweetest bits of sugar.
Everyone is like in a battle of finding the cheapest yet the most unique item in this wide but shallow
sea of used clothing. It was three months ago when the Bureau of Customs seized over P40.5M
worth of ukay-ukay goods according to the news. As a misdeclared cargo during the shipment,
initially they were thought to be fishing supplies but after further investigation, it came out to be
bunches of used clothing.

This is not the first case that ukay-ukay goods are caught through any port in the Philippines. Most of
them were turned over to typhoon and calamity victims after. When Tropical Storm “Sendong” hit
Mindanao in 2012, the Bureau of Custom again donated 20M worth of smuggled used clothing.

“It’s the best option especially that confiscated used clothing can’t be disposed of by auction since
they are prohibited goods.” Custom Commissioner Ruffy Biazon said regarding this.

Confessedly, Filipinos still could not understand why these imported items were tagged to be

4
prohibited or illegal. Some find it reasonable to just let these goods enter the country since they are
cheap and could benefit most of our poor people more.

But as a matter of fact, in the Philippine Law, Statutes and Codes, imported garments like ukay-
ukay are prohibited and should be banned due to some reasons:

“REPUBLIC ACT NO. 4653 - an act to safeguard the health of the Filipino people and maintain the
dignity of the nation by declaring it a national policy to prohibit the commercial importation of textile
articles commonly known as used clothing and rags.”

In addition, Section 2, also states “... that used clothing and rags imported in violation of this Act shall
be burned in the presence of a representative of the General Auditing Office, Department of Finance
and of the Office of the President..."

If health—like getting some contagious diseases—is one of the major concerns why these used
clothing is prohibited, then why the Bureau of Custom is donating all

these as relief goods during the times of calamities like floods and typhoons? There are rumors that
the products being sold at ukay-ukay shops are from the US and Hong Kong. Some say that this
might be a donation from other countries or from the Salvation Army. But no matter where
these ukay-ukay items may come from, there are some other practical reasons why we still need to
patronize or otherwise, totally ban all these.

As a conscious citizen, I could see that these thrift shops sometimes are the only resort left for the
lower class when it comes to getting cheap but quality goods. Imagine how a P500 (about $11) bill
could get at least 3 ukay-ukay items. For ukay hustlers, they just don’t get three items with this
amount of money. They can maximize this and can buy even more!

If health concern is what they say, then there are ways to disinfect the products. Of course, you

should wash it with soap and water after buying; you can soak it with chlorine or maybe boil it for few
minutes like what other people do.

5
Meanwhile, big clothing businesses do not agree to legalize ukay-ukay. From the previous years,

some proposals were submitted aiming to legalize this activity thinking they can generate more tax
revenues from it. This idea just triggered fear within the country’s circles of textile industry thinking
that their business’ stability would probably get even worse.

So far, the government has not raided all the ukay-ukay shops in the Philippines yet. Most of their
operations involve seizing the big chunk of smuggled goods from the shipping ports. Though some
people are hoping that this activity may be legalized soon, there are plenty that just don't really care
about getting an ukay-ukay item nowadays.

1.3 Objective of the Study

This study aims to analyze the ukay-ukay market and its structure, as well as its social, cultural,
and institutional influences. The specific objectives are:

 To have knowledge in the economic growth of Ukay Ukay.

 to describe the consumers' market behavior toward the presence of ukay-ukay and to
identify the factors that influence individuals who patronize these goods
 to analyze the behavior of other products and goods that may be considered as substitute
and complementary goods; and
 to measure the consumer surplus as well as the gains that individuals get from the low-
cost secondhand retail trade.
 To have knowledge in the illegality of the products.

1.4 Significance of the Study

6
Ukay-ukay nowadays is a very affordable source of fashionable yet durable clothing material for
those with relatively low incomes. Some people would resort to buying ukay-ukay items because the
latter are relatively homogenous with the brand new garments and accessories that may be bought in

relatively high-class stores and shopping malls. Philippine-made textiles and garments are said to be
30 percent more expensive than their counterparts in the market, due partly to the inefficient local

production and technology processes as well as their relatively low productivity (Go 2002). The textile
and garments industry still needs adequate provisions for the training of as well as incentives for
workers, technological efficiency, development in

market production, and creation of regulating bodies. It will be tougher for these local firms to
compete against the ukay-ukay sellers. To protect the local garments, textiles and clothing industries,
President Gloria Macapagal-Arroyo banned the entry and sale of ukay-ukay items in the market. This
created discontent among their patrons, who look at ukay-ukay goods as the most affordable in the
market

(Philippine Star 2002). This also entailed some implementation cost on the side of the government.
While authorities have every legal right to confiscate and even burn such items, ukay-ukay stall
owners managed to remain unscathed by relocating outside Metro Manila—to locations not usually
monitored by the Department of Trade and Industry. Still, the ukay-ukay will benefit the poor and
lower middle class most, it will allow them to bargain for cheap wear and gives them the chance to
get hold of mannerly clothing that otherwise would end up as cleaning material, meeting its final
destination at a garbage site. These days more and more people want or need to dress for less and
are joining the ukay-ukay craze. So, dig in and dear to wear, ukay-ukay is okay, it is a number-one
shopping experience for second-hand happiness.

CHAPTER 2
REVIEW OF RELATED LITERATURE

7
This chapter is combining about the concepts which are related with “THE GROWTH OF UKAY-
UKAY (SURPLUS) BUSINESS IN DIVISORIA, CAGAYAN DE ORO CITY’’. The researcher have
been studied about the concepts of the theoretical articles from academic paper, relevant research
and text book from the library that has a components of each theory, and theory of this research are
following topics;
1) Advantages and disadvantages of Ukay Ukay (Surplus)
2) Pricing and return of investment of Ukay Ukay (Surplus)
3) What it takes to be an ukay-ukay (Surplus) entrepreneur
4) Attractiveness of the Ukay-Ukay business
5) Viability of Ukay-Ukay business

1.5 Advantages and disadvantages of Ukay Ukay (Surplus)

Despite the spread of ukay-ukay stores, the business of second-hand clothing is still lucrative in
sizeable cities and towns all over the country. If you want a steady stream of income with a fast
turnover for you or your family in the Philippines, then an ukay-ukay business is a profitable choice.

One of the advantages of ukay-ukay is that the pricing totally depends on the entrepreneur. Of
course, competition with nearby ukay-ukay shops and branded clothes shops can dictate the pricing
of clothes. But with freedom in pricing, an entrepreneur can price the goods so that he or she will not
incur a deficit.

Profit is also quick as it is dependent on a per-sale basis. Entrepreneurs must be ready to negotiate
wisely with customers who haggle - a common practice in ukay-ukay stores. Php10-20 off is
reasonable to retain customer loyalty, but entrepreneurs should only give in if the discounted sale will
still lead to a profit. Expenses for security and upkeep of an ukay-ukay business highly depends on
overhead rates like rent, electricity and store assistants and other essentials like shelves, racks,
hangers, and a security system.

A disadvantage of owning an ukay-ukay is that it takes time and a tremendous amount of patience to
run the business. Acquiring bales, sorting through mountains of clothing, pricing and finally preparing

8
them on the racks will require effort. Knowing how to price the goods to be able to attract buyers and
still make a profit can be mentally exhausting.

In addition, pricing and restocking is highly volatile since sales depend on the season. This makes
ukay-ukay a business only for entrepreneurs who can provide direct and hands-on control of the flow
of labour and items. An ukay-ukay is not recommended for entrepreneurs who are based abroad.
However, they can advise their families back home to run if they are interested.

Since ukay-ukay stores already have an edge over branded and designer clothes stores due to price,
there is almost no need to market the store. However, ukay-ukay entrepreneurs also have to accept
that Filipinos have already attached certain beliefs surrounding the ukay-ukay like issues on health
and quality. There are simply Filipinos who are into ukay-ukay wares and Filipinos who will not even
attempt to step into a store.

As for customers, the ukay-ukay is simply here to last unless calls for stricter policies are put in place.
There is a law that says it is illegal to import second-hand goods in the Philippines. However, there is
no law as of yet that covers businesses trading second-hand goods, which some Filipinos still believe
is a practical choice.

1.6) Pricing and return of investment of Ukay Ukay (Surplus)

There is no doubt that ukay-ukay wares are way cheaper compared to items in malls and even
surplus stores. But with low price tags, is there still a return of investment for the entrepreneur?
Ukay-ukay wares are sold in bales by traders. A bale may consist of anywhere from 500-1000
different articles of clothing and may be sorted into specific kinds like women’s blouses, men’s shirts,
kid’s wear, pants, jackets and others. The price of bales depends on the number of clothes each bale
has or the quality of clothes they carry. Some bales of 1000pcs are sold at Php11,000-15,000, plus
shipping price. At this rate, the investment is around Php11-15 per piece of clothing.

Basic ukay wares like shirts and blouses in Cagayan de Oro are priced at an average of Php50.
Clearance sales may see the prices drop by at most 50%. But even when sold at a discount,
entrepreneurs can still profit from a sale because of the very low initial investment. Whether sold

A fresh’ (within 3-5 days after the opening of the bale) or in a 3-for-100 bargain, the entrepreneur can
still profit or expect a return of investment amounting to 2-4x the original cost per piece of clothing.

9
Pricing ukay wares definitely depends on an entrepreneur’s diskarte (business acumen) – how he or
she deals with customers while balancing the flow of income and the disposal of stocks. Provided an
entrepreneur knows how to use his or her diskarte to manipulate these factors, then return of
investment can be maximised for each bale.

1.7) What it takes to be an Ukay-Ukay (Surplus) entrepreneur

An ukay-ukay entrepreneur can easily open multiple stores if sales are good. To maximise the return
of investment, however, the entrepreneur must be able to sell each and every article of clothing in the
bale. Once an article of clothing has passed its ‘freshness’ threshold, then the entrepreneur must
apply strategic pricing schemes like ‘buy 1 take 1’ or ‘3 for 100.’

Aside from pricing skills, an ukay-ukay business owner must also have the following characteristics to
be able to keep the profits coming:

Creativity. The ukay owner must know how to convert old wares into something more profitable.
There are some articles of clothing that simply aren’t sellable in the store, even if priced at Php1. A
solution would be to make crafts items from them, like pillow cases. They can also be turned into rags
for practical use at home. Owners can also collect and sell them in another branch or town.

Patience. The ukay owner must be patient enough to buy, sort through and price every piece of
clothing in a bale. Bales can carry thousands of clothes at a time, and it will take a whole day to sort
through these piles alone. The ukay business is a business that requires your whole, undivided
attention – it is not a business for entrepreneurs who aren’t into people, fashion and who aren’t
flexible enough to adjust in a volatile market

Organized. Finally, the ukay owner must be organised him or herself to be able to juggle pricing,
customer and cash flow at the same time. An entrepreneur’s sense of organisation also translates
smoothly to the business – an important attribute since an ukay business needs to be organised for
customers to search through and rummage for clothes easily.

How profitable an ukay-ukay business is nowadays basically falls down to the effort and traits of the
owner. Without one of the attributes mentioned, it will be difficult to fit into the role of ukay-ukay

10
business proprietor. But once an entrepreneur has adjusted to the demands of maintaining an ukay-
ukay business, then profit will flow.

1.8) Attractiveness of the Ukay-Ukay business

Where do they prefer buying

23%
Ukay-Ukay
Shopping Mall

77%

The table above shows that more people choose Ukay-Ukay than Shopping Mall. Although
apparels sold at the Shopping Mall are branded, clean and safe people still love to go shopping at
Ukay-Ukay for it’s cheap price and hood quality of the product too. This just proves that Ukay-Ukay is
popular to the Filipino people.

1.9) Viability of Ukay-Ukay business

11
 Started selling Ukay-Ukay
2014
2013
2012

2010
2009
2008

2006

2004
2003
2002

2000

1998
Ukay-Ukay 1 Ukay-Ukay 2 Ukay-Ukay 3
Started selling Ukay-Ukay

Table 15 shows what year the owners started selling Ukay-Ukay. According to the first
owner, they started selling during 2003 during the Night Café in Divisoria but now they are
still located in Divisoria in front of Mcdonalds they are selling Ukay-Ukay apparels for
already 15 years now. The second owner of the Ukay-Ukay said that they started selling
during the year 2009 they also started selling during the Night Café in Divisoria, although
the Night Café is already stopped, they didn’t stop selling Ukay-Ukay because this
business increases their income. Lastly, the last owner of the Ukay-Ukay started 5 years
ago, it was during the year 2013. They are already 5 years in the business and they said
business is doing good they will probably continue selling Ukay-Ukay in the next 5 years.

CHAPTER 3
RESEARCH METHODOLOGY

12
2.0 Research Locale
The reason why the researchers will carry on a research among the ukay-ukay shops in Divisoria
Cagayan De Oro City is to know the economic growth of ukay-ukay. The respondents will be chosen
at random buyer of ukay ukay both male and female.

2.1 Research Design

The researcher workers will utilize descriptive design which normally used in research method. It
aims to depict the nature of the state of affairs as it exists at the survey questionnaire. The researcher
works will utilize a questionnaire and owner interview.

2.3 Research Instruments

The researcher instruments to be used is gathering primarily information is the questionnaire.
Primarily information are informations that are collected to assist work out job or take advantage of a
chance on witch determine devising is pending.

2.4 Research Respondents

The researchers of the research survey are at least 100 clients and 3 owner of ukay-ukay vesture.
The male and female respondents will be chosen at randomly by the researcher workers to answer
the questionnaire during the survey. The respondents chosen are those who have an ukay-ukay
concern and thos who have concern in ukay-ukay ventures.

2.5 DATA GATHERING

The researchers gathering information by utilizing structured questionnaire to be answer by the
respondents. Tabulation and analysis of information gathered was done after the tally of
questionnaire. The researchers prepared the necessary information measuring from the full interview
in the structured questionnaire.

CHAPTER 4

13
 PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents analysis and interpretation of the gathered data that answers the
problem of the study in response to the growth of Ukay-Ukay Business in Divisoria, Cagayan de Oro
City.

The researchers interviewed seven (3) Ukay-Ukay Business owners that would represent the
whole population of the owners of Ukay-Ukay Busines.

Problem 1. What is the profile of the respondents in terms of:

a. Age
b. Gender
c. Budget allocated for Ukay-Ukay

14
Table 1.

Age

19
6% 3% 14
7% 24
23
3% 33%
20
5% 28
26
21
18
18% 15
8%
5% 12%

Table 1 shows the variation of ages who buy Ukay-Ukay apparels. Out of 100 respondents,
5% of it are 28 years old, 3% of it are 26 years old, 12% of it are 24 years old, another 5% of it are 23
years old, 7% are 21 years old, 18% are 20 years old, 33% are 19 years old, 6% are 18 years old,
3% are 15 years old, and lastly the remaining 8% are 14 years old. Based on the age variations, it
was found out that teenagers like to go to Ukay-Ukay because of Ukay-Ukay also have the trendy
clothes in the market.

15
Table 2.

Gender

Female
Male

100%

Table 2 represents the two genders we have. Out of 100 respondents, 100% are Female so
we don’t have a male who responded in our survey. Fashion isn't always about the price point of the
things we wear. As we deem fashion as art, we take pride in knowing that we can whip up a good
outfit even without the hefty price tag. Plus, who says nice clothes can only be found in boutiques and
malls? Ukay-ukay or thrift shopping is always an option. Although mind you, it's not for the faint-
hearted!

16
Table 3.

Number of respondents who buy Ukay-Ukay apparels

Yes
No

100%

Table 3 shows that out of 100 respondents, 100% of it are buying apparels from Ukay-
Ukay.

17
Table 4.

Apparels that the respondents buy in Ukay-Ukay

16%
Clothes
Shoes
Bags

27% 57%

Table 4 shows that out of 100 respondents, 57% of it buy clothes, 27% buy shoes, and the
remaining 16% buy shoes. Most of the people prefer buying clothes when going to Ukay-Ukay
because most of the clothes that can be bought in Ukay-Ukay are also branded.

18
Table 5.

Who they go with when buying Ukay-Ukay

10%
1%
8% Friends
Family
Alone
Co-workers

81%

Table 5 shows who are respondents with when buying Ukay-Ukay. Out of 100 respondents,
81% of it are with their friends. 8% are with their family, 10% are with their Co-workers, and the
remaining 1% they prefer going alone.

19
Table 6.

How often do they go to Ukay-Ukay

17%
31%
Weekly Monthly Seldom a year

52%

Table 6 shows how often our respondents go to Ukay-Ukay. Out of 100 respondents 52% of it
go to Ukay-Ukay monthly, 31% of it go weekly, and 17% go seldom a year.

20
Table 7.

Budget spent for buying Ukay-Ukay

17%
P50-150
P150-250
P250-350
54%
29%

Table 7 shows the budget allocated for buying Ukay-Ukay. 54% of it have a budget of P50-
150, 29% of it have P150-250, and the 17% have P250-350.

21
Table 8.

Where do they prefer buying

23%
Ukay-Ukay
Shopping Mall

77%

Table 8 above shows the choice of our respondents where do they prefer buying apparels. Out
of 100 respondents, 77% of it choose Ukay-Ukay and 23% choose Shopping Mall. Although apparels
sold at the Shopping Mall are branded, clean and safe people still love to go shopping at Ukay-Ukay
for it’s cheap price and hood quality of the product too. This just proves that Ukay-Ukay is popular to
the Filipino people

22
Table 9.

Ukay-Ukay VS. Shopping Mall

9%

14% Cheaper
Still branded
Clean and safe
Branded
53%

24%

Table 9 shows the comparison of the two choices which are Ukay-Ukay and Shopping Mall. Out of
100 respondents we have 77% who choose Ukay-Ukay and out of that 77% the 53% prefer buying
apparels from Ukay-Ukay because it’s cheap, the remaining 24% of the 77% is because Ukay-Ukay
apparels are still branded. On the other hand, we have the remaining 23% left who prefer buying in
Shopping Mall and that 23% is composed of 14% because apparels from Shopping Mall are clean
and safe and the 9% choose Shopping Mall because it is branded.

23
Table 10.

Do they have regrets in buying apparels from Ukay-Ukay

19%
Yes
No
Sometimes

81%

Table 10 shows if the respondents have any regrets after buying Ukay-Ukay apparels. Out of
100 respondents, 81% of it have no regrets in buying apparels from the Ukay-Ukay and the
remaining 19% sometimes have regrets. Most of the buyers don’t have regrets buying Ukay-Ukay
because aside from a cheaper price and a good quality at the same time. And it is satisfying when
you buy a certain thing that you like at a cheap price.

24
Table 11.

How satisfied are they in buying Ukay-Ukay

31% Highly Satisfied

Likely Satisfied
43%
Satisfied

26%

Table 11 shows how satisfied our respondents are. Out of 100 respondents, 43% of it are
Highly satisfied having Ukay-Ukay products, 26% are Likely Satisfied, and the 31% are just Satisfied.

GRAPH AND INTERPRETATION FOR OWNERS SURVEY

Table 12.

25
 Advantages of Ukay-Ukay

25%
Inexpensive and low cost Some apparels are branded Many sorts of apprels

8%
67%

Table 12 shows that 67% of the sellers choose that the advantage of Ukay-Ukay is
inexpensive and low cost. Most of the people love to shop at Ukay-Ukay because of ot’s
low cost and the good quality of the product. The 25% said that there are many sorts of
apparels you can choose from namely clothes like blouses, sweatshirts, sandos, t-shirts
and also different kinds of shoes and bags. And the last 8% remaining said that some of
the apparels are also branded like the ones in the shopping malls.

Table 13.

26
 Disadvantages of Ukay-Ukay

12%

Some apparels are not in good status Most of the apparels are not branded They don't know where it came from

53%
35%

Table 13 shows the list of disadvantages. 53% of the owners said that the disadvantage
of Ukay-Ukay business is that some of the apparels are not in good status anymore.
Some of the clothes have little defects like the stitch are already loose. 35% of it said that
most of the apparels also are not branded or it doesn’t come from a popular brand.
The remaining 12% said that they don’t know where the goods came from. Most of the
owners said that they buy bundle of second hand clothes from Koreans, so basically most
of it came from Korea. But it doesn’t mean that when the clothes are from Korea it all
came from Korea also.

Table 14.

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 Where do they acquire their stock

Korea

100%

100% of the owners that we interviewed acquire their stock from Korea because it is
cheaper when buying bundles from Korea and there’s only minimal defects unlike
acquiring stocks from Thailand and Hongkong. The owners love to buy stocks from
Koreans because they are easy to talk to and the will give you big discounts when you buy
stocks from them during a long time.

Tabel 15.

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 Started selling Ukay-Ukay
2014
2013
2012

2010
2009
2008

2006

2004
2003
2002

2000

1998
Ukay-Ukay 1 Ukay-Ukay 2 Ukay-Ukay 3
Started selling Ukay-Ukay

Table 15 shows what year the owners started selling Ukay-Ukay. According to the first
owner, they started selling during 2003 during the Night Café in Divisoria but now they are
still located in Divisoria in front of Mcdonalds they are selling Ukay-Ukay apparels for
already 15 years now. The second owner of the Ukay-Ukay said that they started selling
during the year 2009 they also started selling during the Night Café in Divisoria, although
the Night Café is already stopped, they didn’t stop selling Ukay-Ukay because this
business increases their income. Lastly, the last owner of the Ukay-Ukay started 5 years
ago, it was during the year 2013. They are already 5 years in the business and they said
business is doing good they will probably continue selling Ukay-Ukay in the next 5 years.

Table 16.

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 Continuance of business for the next 5 years

No 22%

Yes 78%

Column1

According to the table above, around 78% of the Respondents is still considering in
continuing the selling of Ukay-Ukay in the next five(5) years, which only means that the Ukay-Ukay
business in Cagayan de Oro City specifically in Divisoria will boom in the next five(5) years.

MONTHLY INCOME STATEMENT

SALES PHP300,000

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COST OF SALES 50,000

GROSS PROFIT PHP250,000

EXPENSES:

RENT EXPENSE 141,000

UTILITIES EXPENSES 5,000

SALARIES AND WAGES 18,000

NET INCOME PHP86,000

CHAPTER 5
CONCLUSION AND RECOMMENDATIONS

2.6 Summary

The researchers decided to carry on a research which concerns about the “THE GROWTH OF
UKAY-UKAY (SURPLUS) BUSINESS IN DIVISORIA, CAGAYAN DE ORO CITY’’. This research

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aims to allow people understand all about ukay-ukay (surplus) business specifically to its economic
growth. The researchers gathered their information’s through interviews and study questionnaires
and using references from the internet.

After the finalizing the questionnaires.

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