"Ukay-ukay" trade boosts garment industry growth

CEBU, Philippines – Previously deemed as a competitor, now the “ukay-ukay” phenomenon is considered by apparel makers and RTW retailers as a complementary marketing tool that has helped sustain the growth of the garment industry.

Golden ABC Inc., president and chief executive officer (CEO) Bernie Liu said that “Ukay-Ukay” trading is now considered as complementary tool to the apparel and garment retail industry, as the mainstream consumers who have been hooked to buying “ukay-ukay” are now educated on the latest fashion and brands.

“It did affect us for a while. But, in the long run shoppers are still lured to the convenience offered by legitimate apparel retailers, especially for women, wherein shopping is a therapy for them,” said Liu, whose company is behind the well known apparel brands like Penshoppe, For Me, Oxygen, Memo, and others.

He said for a time, the advent of second-hand clothing retail, which is widely available in flea markets had affected revenue and bottom-line performances of legitimate apparel brands, however, he said retailers have lately found out that offering convenience in shopping still lures majority of the consumers.

“We have reached the point that the ‘Ukay-Ukay’ [trade] is more of a complementary, than a threat to the apparel retailers, and makers,” Liu said.

Likewise, Aldeguer Group of Companies (AGC) the maker of Loalde, Island Souvenirs, USA Sports, Bisaya Ispisyal brands, expressed similar insight saying the existence of “Ukay-Ukay” is no longer considered as a threat to the legitimate apparel and garment businesses.

Jonathan “Jay” Aldeguer of AGC, said that the market has come to know the well-known reliable brands in the apparel trade like Billabong, Roxy, for instance, because these are being sold in second-hand markets at a very affordable price.

“No one wants to wear branded but second-hand clothing all the time. One feels good when he buys brand-new branded clothes. In a way, the “ukay-ukay” business has educated the market in terms of fashion and choosing credible world class brands,” Aldeguer said.

Both Liu and Aldeguer affirmed that “ukay-ukay” trade, although it has become widespread available in most corner in the metropolis and countryside areas, has not anymore affected the legitimate apparel trading.

In fact, amid the weak consumer interest of buying brought about by the financial crunch, Liu said his company recently bought-out another apparel brand “Regatta”, a testament that apparel and garment trading in the Philippines is still dynamic, although bottom-line for companies is not as encouraging as before.

According to Liu, achieving a single-digit growth this time, is already good, considering that some industries have projected either “no growth” or “negative” performance for the year.

For the retail industry in general, most companies are still enjoying single-digit growth, particularly in the apparel and garment retail.