swot analysis of ukay ukay

Before you start, its better to learn the pros and cons of the business. Other common threats include things like rising costs for materials, increasing competition, tight labor supply. A SWOT analysis can be broken into several steps with actionable items before and after analyzing the four components. 14, Filipino Gen Z Consumer Behavior Towards Ukay-Ukay and their Role in a Circular Fashion Economy, Jodi Aedrienne L. Bengzon, De La Salle University Integrated School (Manila) With ukay-ukay, there will always be something for someone. The researches limit the study in the Ukay-Ukay stores which will focus on the information and the knowledge of the costumers and sellers about Ukay-Ukay. Well occasionally send you promo and account related email. is a company based in Malaysia, with its head office in Ampang. Risk analysis is the process of assessing the likelihood of an adverse event occurring within the corporate, government, or environmental sector. Silverio,Ina First, it has a different marketing and sale process. It is recommended to first create a list of questions to answer for each element. Ukay-Ukay had been a great help to many people not only the vendors but also the ones who buy it. She now writes for a number of websites and other online media publications. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision. Dont waste Your Time Searching For a Sample, The Science of Shopping versus "The Signs of Shopping", Compare/Contrast Online Shopping vs Traditional Shopping, Compare and contrast shopping online with shopping in actual shops. In conjunction with other planning techniques, the company used the SWOT analysis to leverage its strengths and external opportunities to eliminate threats and strengthen areas where it is weak. With the spread of ukay-ukay stores, the practice of buying thrift items has become popular among Filipinos. SWOT analyses are not limited to companies. In a study by Rina Locsin, where she zoomed into the culture of ukay-ukay in Baguio, she states that it is difficult to determine the exact date of when the ukay-ukay started in the country. It is also a popular trend among sellers to conduct live selling. Knowing these positive and negative elements can help companies more effectively communicate what parts of a plan need to be recognized. SWOT analysis was first used to analyze businesses. Some would resort to buying ukay- ukay items because these are When ukay-ukay stores become a disservice for whom secondhand clothes simply mean cheap and not vintage or an ukay challenge, then thats where the danger actually resides. Only few, Filipinos know that ukay-ukay is illegal. Type your requirements and Ill connect you to Kinonvert nila 'yung lumang cinema into a thrift shop. In 2001, the Philippines imported US$2.29 billion or PhP116.7 billion worth of consumer goods-approximately 6 percent higher than the previous years imports of US$2.25 billion (or PhP104.4 billion). The collective knowledge of the team will allow you to adequately analyze your business from all sides. Poblacion in Makati is a perfect example of gentrification, and yet does this stop people from going there? (2016, Apr 21). Ukay-ukay is not only fashion-forward but also an ideal shopping option for college students on a tight budget. The researchers will use descriptive design which is a commonly used research method. It does not store any personal data. For example, a drought is a threat to a wheat-producing company, as it may destroy or reduce the crop yield. > In addition to data, a company should understand the right combination of personnel to have involved in the analysis. These cookies ensure basic functionalities and security features of the website, anonymously. Nowadays it is a term use for place that sell old clothes, bag, shoes, and other pre-owned goods a very low prices (de Jong 2011) Out of 20 respondents (sellers), 6 of the respondents corresponding to 30% said that they price their stock based on the brand of an ukay-ukay, 2 of the respondent corresponding to 10% said that they price their stocks based on the type garment, 11 of the respondents corresponding to 55% said that they price the ukay-ukay based on the quality and 1 of the respondent corresponding to 5% said that they price their stocks by piece. Perform a SWOT analysis before you commit to any sort of company action, whether you are exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution. It aims to describe the nature of the situation as it exists at the time of the study. Learn all about this approach below. and so on. Retrieved from http://studymoose.com/ukay-ukay-shopping-buiseness-essay. Out of 20 respondents (sellers), 17 of the respondents corresponding to 85% said that they get their stock in Cebu City, and other respondents corresponding each at 1% said that they get their stocks in Manila, Korea and Samar. Despite hundreds of mediators in the marketplace, only a few have actual construction experience. A SWOT analysis pulls information internal sources (strengths of weaknesses of the specific company) as well as external forces that may have uncontrollable impacts to decisions (opportunities and threats). He provided Business News Daily with a sample SWOT analysis template and example that was used in the firms decision to expand its practice to include dispute mediation services. The DSWD apparently discovered that the NGO was only a face for a smuggler of secondhand clothes, which were then sold in Baguio. Use a SWOT analysis to identify challenges affecting your business and opportunities that can enhance it. Accessibility Statement. Others are recorded as pasalubong for Philippines-based relatives. Though the elements and discoveries within these categories will vary from company to company, a SWOT analysis is not complete without each of these elements: Strengths describe what an organization excels at and what separates it from the competition: a strong brand, loyal customer base, a strong balance sheet, unique technology, and so on. 4 Personal Loans With Low Interest Rates In The Philippines To Fund Your Small Business, 5 Leading Financing Companies In The Philippines, 4 Ways To Contact The Customer Service Of Globe Telecom, What Is The Top Accounting Firm In The Philippines? Class A contains high quality stocks. In 2002, the Macapagal-Arroyo banned the entry and sale of ukay-ukay items in the market. There is seemingly limitless applications to the SWOT analysis. But many people would love it if the government will abolish the law. A SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, initiatives, or within its industry. Clothing Poverty The Hidden World of Fast Fashion and Second-hand Clothes, Evaluating competing theories of street entrepreneurship: some lessons from a study of street vendors in Bangalore, India, Trade Analysis of Retail and Service Industries in North Dakota for Planning Local Economic Development, Master international franchising in China: the case of The Athlete's Foot, Key Success Factors in Female Micro Entrepreneurship-A Study of the Catering Business, Indigenous Australians and competition and consumer issues: A review of the literature and an annotated bibliography. You will no longer need to pay for rent, making your overhead expenses lower than other businesses. That the costumers or ukay-ukay fanatics wont prefer buying ukay-ukay underwear because you might get reproductive diseases. Additional materials, such as the best quotations, synonyms and word definitions to make your writing easier are also offered here. Interview-a formal consultation usually to evaluate qualifications. You can get a custom paper by one of our expert writers. Some staff may be more connected with external forces, while various staff within the manufacturing or sales departments may have a better grasp of what is going on internally. Human resource planning (HRP) is the continuous process of systematic planning to achieve optimum use of an organization's employees. Also, each point listed within the categories is not prioritized the same. Researcher-the one who conducts the research. The ukay shopping phenomena all started in Baguio. A SWOT analysis is a compilation of your companys strengths, weaknesses, opportunities and threats. In general, a SWOT analysis will involve the following steps. Generally, this study found that Filipino Gen Z consumers perceived values of second-hand clothing significantly influence their attitudes towards participating in a circular economy, and illustrated in specific categories how and to what degree. Home Locsin says that this period after the second world war coincides with the time the UN Relief and Rehabilitation Administration (UNRRA) gave billions of dollars worth of relief to Asia, which was around 1943 and 1949. This quantitative study collected data from (100) Filipino Gen Z consumers using an online questionnaire for each value. Weaknesses stop an organization from performing at its optimum level. We also use third-party cookies that help us analyze and understand how you use this website. XXXII No. Doon ko nabili 'yung first ever pair ko of Birkenstock for only P600. However, increased material costs, strained distribution lines, the need for additional staff, and unpredictable product demand may outweigh the strengths and opportunities. Limitation are the statements which alert the reader of the research report to certain constraints which the researcher has no control. Ukay-ukay is so popular since it is a cost-effective option for shopping on a budget. Clothing Poverty uncovers how fast fashion retailers and charity shops are embroiled in commodity chains which perpetuate poverty. Opportunities refer to favorable external factors that could give an organization a competitive advantage. 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 uniqueness, 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 engaging in the business. To keep client loyalty, a discount of Php10-20 is acceptable, if it would still end in a profit. Identifying core strengths, weaknesses, opportunities, and threats leads to fact-based analysis, fresh perspectives, and new ideas. Once youve identified your risks, you can then decide whether it is most appropriate to eliminate the internal weakness by assigning company resources to fix the problems, or to reduce the external threat by abandoning the threatened area of business and meeting it after strengthening your business, said Bauer. This will assist you with getting your business up and running. It originated in Baguio City. In this example, the SWOT analysis should help determine whether or not the product should be introduced. See if your business is eligible for a tax credit of up to $26K per employee! Strengths and weaknesses wont typically match listed opportunities and threats verbatim, although they should correlate, since they are tied together. ", Seeking Alpha. The most popular destinations for ukay-ukay is in Baguio, Cebu, Cubao, Anonas, Bluementrit Espana, Mandaluyong, Sta.Mesa and Pasig. The primary objective of a SWOT analysis is to help organizations develop a full awareness of all the factors involved in making a business decision. Every SWOT analysis will include the following four categories. The company was established on August 17, 2005. their weekly income is from the range of 2,000-6,000, 5 of the respondents corresponding to 25% said that their weekly income is from the range of 6,000-10,000, 4 of the respondents corresponding to 20% said that their weekly income is ranging from 10,000-15,000 and 3 respondents corresponding to 15% said that their weekly income ranges from 15,000 and 20,000. In 2015, a Value Line SWOT analysis of The Coca-Cola Company noted strengths such as its globally famous brand name, vast distribution network, and opportunities in emerging markets. Besides evaluating the key success factors, the proposed model also suggests 10 success factors that represent a strong contribution to the literature by providing a valuable sub-pack for creating and operating a micro-enterprise. Small (three employees) can change and adapt quickly. The industry that sprouted out of second hand clothes generates millions in income for sellers, and saves millions more for the people who buy from them. However, studies assessing Filipino consumers perception of ukay-ukay as a CE are limited, making their role and a CEs subsequent potential indeterminate. Although the values already show a significant amount, they do not yet include other foreign commodities illegally entered into the country. WebSWOT for Ukay Ukay is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance companys operations. Home Depot conducted a SWOT analysis, creating a balanced list of its internal advantages and disadvantages and external factors threatening its market position and growth strategy. Strengths and weaknesses are listed first, followed by opportunities and threats. Max Freedman and Nicole Fallon contributed to this article. SWOT analysis is a technique for assessing the performance, competition, risk, and potential of a business, as well as part of a business such as a product line or division, an industry, or other entity. 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. 2015 Nine Media Corp. CNN name, logo and all associated elements and 2015 Cable News Network. While the business owner should certainly be involved in creating a SWOT analysis, it is often helpful to include other team members in the process. Will Kenton is an expert on the economy and investing laws and regulations. According to Abueg, the market for secondhand garments flourished from its considered capital, Baguio City, province of Benguet despite a law that prohibits the wholesale of second hand clothes. To the government, they will realize that even though ukay-ukay imports and sells cheaper second-hand clothes, still it has a great help especially to the citizens who are in the poverty line. You must be prepared for losses and lean months. A company can use aSWOT for overall business strategy sessions or for a specific segment such as marketing, production, or sales. To run a successful business, you should regularly analyze your processes to ensure you are operating as efficiently as possible. How to Get a Bank Loan for Your Small Business, How to Conduct a Market Analysis for Your Business, Guide to Developing a Training Program for New Employees. When such goods are brought into the country, records would show that some were not really intended for sale: The government would maintain that these are either donations or aid from foreign countries. The findings of this study will be beneficial to the following: Theres more to ukay-ukay than the democratization of fashion. Out of 20 respondents (costumers), 3 respondents corresponding to 15% were 15-20 years old, 9 respondents corresponding to 45% were 20-30 years old, 3 respondents corresponding to 15% were 30-40 years old, 2 respondents corresponding to 10% were 50-60 years old and 2 respondents corresponding to 10% were 60-70 years old. The researchers decided to conduct a research which concerns about the nature of ukay-ukay industry. Most people said that the most common disadvantage of ukay-ukay is that sometimes it is not good condition, because of the holes, scratches, dirt and etc. CONF_SHSRESCON Ukay-ukay is so popular since it is a cost-effective option for shopping on a budget. We then crafted our business plan to emphasize the advantages of our strongest features while exploiting opportunities based on marketplace weaknesses.. Though the thesis was written in 2005, what he wrote remains valid: 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, he said. The ukay shopping phenomena all started in Baguio. Start An Ukay Ukay Store Business Summary Startup Costs Pros & Cons Marketing Ideas Wondering how much it costs to start an ukay ukay store business? Linda Pophal, strategic marketing communication consultant and content marketer at Strategic Communications, said these strategies should focus on leveraging strengths and opportunities to overcome weaknesses and threats. Porter's 5 Forces vs. PESTLE Analysis: What's the Difference? For the costumers viewpoint, what are their different perspective about the advantages and disadvantages of ukay-ukay? Its Applications and Uses in Business, Risk Analysis: Definition, Types, Limitations, and Examples, What Is Brand Management? Most of them had a weekly income that ranges from 2000-6000 pesos. Every questions was answered by the said respondents honestly. For the poor, thrift shops have been the most practical place to shop for clothes because of its low prices. The gross margins for your ukay ukay store business are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability. In the ukay ukay store business, employee turnover is often high, which can be quite costly and time consuming for your business. Stores like Goodwill Industries in the U.S. and Salvation Army in the U.K., both distributed by Methodist churches, have begun to be a viable place for buying cheap clothes. Sorry, preview is currently unavailable. These include white papers, government data, original reporting, and interviews with industry experts. This is actually the area of strategy development where organizations have an opportunity to be most creative and where innovative ideas can emerge, but only if the analysis has been appropriately prepared in the first place, said Pophal. Those who buy clothes from ukay-ukay cried out against the threat of losing a much cheaper, alternative provider of their wardrobe needs. It is one of several business planning techniques to consider and should not be used alone. The six forces model is a strategic business tool that helps businesses evaluate the competitiveness and attractiveness of a market. For example, the company debating whether to release a new product may have identified that it is the market leader for its existing product and there is the opportunity to expand to new markets. Ukay stores sprouted like mushrooms which later became one of the must-visit places in Baguio. Bambang in Manila have also become a used clothing district and Locsin says that thrift shops in the area became profitable businesses because a young generation looked into the ukay culture as a source of vintage clothing.. The advantage of an ukay-ukay store business is that it has a basic business plan that is easy to learn. 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 difficulties faced by the business as basis for formulating interventions to uplift the business. How Does 401(k) Matching Work for Employers? WebThus, this study analyzes Filipino Gen Z consumers motivating factors of perceived value, the dynamics of individualism, and investigates their role in the ukay-ukay CE. These frameworks are essential to fundamentally analyzing companies. To inform people about the advantages of Ukay-Ukay. This cookie is set by GDPR Cookie Consent plugin. With the list of ideas within each category, it is now time to clean-up the ideas. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Research-the collection of information about a particular subject. To determine some facts about Ukay-Ukay and the industry itself. To install StudyMoose App tap To inform people also about its disadvantages. You are the one who makes practically all of the decisions when beginning an ukay-ukay retail business. Little we Filipinos know about it. Following the journey of a pair of jeans Clothing Poverty takes the reader on a vivid around-the-world tour from cotton fields to retail stores. ukay-ukay; circular fashion economy; second hand clothing; consumer behavior; Gen Z, Home | Every SWOT analysis will vary, and a company may need different data sets to support pulling together different SWOT analysis tables. In their viewpoint, the topmost reason why they prefer to buy some clothes in an ukay-ukay store because it has cheap and affordable price. Brazilians and Ethiopians only like to, Mark likes to eat pizzas and watch TV. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The SWOT framework can be constructed in list format, as free text, or, most commonly, as a 4-cell table, with quadrants dedicated to each element. Five years later, the Value Line SWOT analysis proved effective as Coca-Cola remains the 6th strongest brand in the world (as it was then). Closely related to its weaknesses, Home Depot's threats were the presence of close rivals, available substitutes, and the condition of the U.S. market. It must then decide how to use those results to attract new investors. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Mostly, women are the ones who like to shop for ukay-ukay over men. Employ a SWOT analysis before you commit to any company action, whether thats exploring new initiatives, revamping internal policies, considering opportunities to pivot or altering a plan midway through its execution. As a compromise, the secondhand fashion industry (ukay-ukay), is an interesting sustainable alternative since it reduces waste and recirculates clothingtwo integral grounds for a circular economy (CE). SWOT does not account for the differences in weight. Since its creation, the SWOT analysis has become one of the most useful tools for business owners to start and grow their companies. With the transformation of secondhand clothing and garments retail and trade into what it is today, the government is now moving to Don't use plagiarized sources. ", Panmore. Most of the costumers are females. To determine how much profit does an Ukay-Ukay business earns. This ukay-ukay place can be reached easily since it is accessible through the MRT or LRT 1 lines. Aside from an engaging social media presence, this business also runs on referrals. The lack of knowledge about the Ukay-Ukay. The term ukay-ukay was derived from the Visayan term halukay which means the act of digging. In a SWOT analysis, strengths and weaknesses cover your own resources and processes. Those who sold ukay-ukay decried that many will lose their jobs and main sources of income those who man the stores, who sort out the clothes, those who are into the transport of goods. Powered by. May it be a pair of vintage pants or thrift bags, customers often find something they like. CNN and the CNN logo are registered marks of Cable News Network, Inc., displayed with permission. Most respondents (costumers) corresponding to 31%, believe that the advantage of ukay-ukay is that it is cheap and affordable and the least chosen advantage of ukay-ukay corresponding to 4% is that shopping for it can lessen their expense on clothing and also a least advantage is that shopping for it is fun. In the Philippines, non-government organizations (NGOs) in the 80s started selling tax-free clothing as a means to fundraise. If the term is employed to the context of ukay-ukay culture, then it possibly is. In addition to analyzing thing that a company does well, SWOT analysis takes a look at more detrimental, negative elements of a business. The term ukay-ukay was derived from the Visayan term halukay which means the act of digging. The Economics of Secondhand Retail Trade: An Analysis of the Market for Ukay-ukay PJD 2005 Vol. Marion Calvin H. Mijares, De La Salle University Integrated School (Manila) Its used for strategic A SWOT analysis can be broad, though more value will likely be generated if the analysis is pointed directly at an objective. If anything, the issue brought to light an often understudied culture of shopping in an ukay-ukay. Although a useful planning tool, SWOT has limitations. Is this gentrification? However, finding the right supplier is not an easy task. Thank you so much for accepting my assignment the night before it was due. Strictly speaking, gentrification is a term used by urban planners to refer to poor neighborhoods that have been renovated to cater to a more affluent market. This study aims to let people understand all about the ukay-ukay industry specifically about its nature. But there have been notes from anthropologists like Lynne Milgram saying that access to secondhand clothing already grew after World War II in Southeast Asia.. Physical resources (location, facilities and equipment), Human resources (employees, volunteers and target audiences), Current processes (employee programs, department hierarchies and software systems), Economic trends (local, national and international financial trends), Funding (donations, legislature and other sources), Relationships with suppliers and partners, Political, environmental and economic regulations. Primary data are data that are collected to help solve a problem or take advantage of an opportunity on which a decision making is pending. Then, a correlational and causal research design consisting of descriptive statistics, simple linear regression, multiple regression analysis, mediation analysis, and moderation analysis was used. Most respondents (costumers) believe that the disadvantage of ukay-ukay corresponding to 35% is that sometimes when buying ukay-ukay it has holes, broken zippers, dirt and etc.

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