RRL
RRL
RRL
Submitted By
Marcelino, Marion
November, 2018
The impact of the second-hand clothing trade on developing countries
Methodology
The review draws upon three sources of information to explore the impact of SHC:
1. Existing literature on SHC, which provides country case studies of the impacts of SHC
in Zimbabwe, Zambia, Kenya, Rwanda, Ghana, and Tunisia;
2. Industry studies of new textile and clothing production in West Africa, covering both
the formal and informal sectors;
3. A detailed country case study of the SHC, and textile and clothing sectors in Senegal,
which draws upon new research commissioned by Oxfam for this review.
Findings
The SHC trade represents a small proportion of the total global trade in clothing (less
than 0.5 per cent of total value), but for many sub-Saharan African countries it is a
dominant feature of the clothing market (more than 30 per cent of the total value of
imports, and much more than 50 per cent in volume terms). In most of these countries,
SHC is declining as a share of total clothing imports, due to the increase in new imports
from Asia, but nonetheless it remains highly significant.
The trade has clear consumer benefits. This is especially true in countries with low
purchasing power, and for poorer consumers, though in many sub-Saharan African
countries it seems that almost all socio-economic groups are choosing to buy SHC. For
example, over 90 per cent of Ghanaians purchase SHC. Affordability is the key reason
why people buy these goods. Fashion and consumer preferences also seem to be shifting
away from traditional, ‘African’-style to more ‘Western’-style clothing. The trade
supports hundreds of thousands of livelihoods in developing countries. These include
jobs in trading, distributing, repairing, restyling, and washing clothes. Oxfam’s research
in Senegal estimates that 24,000 people are active in the sector in that country. It is not
possible to make exact comparisons with employment generated by domestic production,
Economic and social consequences of used clothing imports in Senegal
Perceptions of the SHC trade vary in Senegal. Consumers, traders, and market organisers
clearly see many economic and social benefits in the trade. To date, however, there has
been little systematic analysis of the relative costs and benefits.
In several West African countries it is not clear that, even in the absence of SHC, local
textile/garment production would recover, as new imports from East Asia are cheaper
than locally produced goods and there are serious supply-side constraints (expensive
inputs, high interest rates, etc.). SHC may have contributed to the demise of the industry
but its absence might not bring the industry back.
The Economics of Secondhand Retail
Trade: An Analysis of the Market for
Ukay-ukay
By: Luisito C. Abueg
In recent years, the market for secondhand garments has flourished from its considered
capital, Baguio City, province of Benguet. Although Republic Act number 4653 (ratified
July 1966) had been enacted, there is no clear implementation of this law (e.g.,
confiscation and/or burning
of such imported commodities). It is clear that people see this market as an alternative to
counterpart goods burdened with soaring prices; however, with the invocation of laws
that prohibit importation and sale of secondhand garments, consumers of such
commodity have different reactions and suggest alternative solutions so as not to be
affected negatively (in terms of the economic dimensions of their lives). This paper tries
to look at these issues by quantifying consumer surplus in this market and estimating the
market demand. Such will then give some overview of the dynamics of such
commodities' consumers and suppliers.
The first and foremost point to note is the controversial manner these secondhand
clothing and garments goods were entered into the local market. There are three
government claims regarding the entry of these goods (that became the grounds for the
strict implementation of the ban of ukay-ukay): (1) These are originally relief goods from
other countries that were donated through both locally based or international charitable
institutions; (2) These are imported with some "red tape" in the Bureau of Customs (de
Castro 2001) to make them appear as pasalubong; and (3) These are possibly smuggled
(imported without taxes and government inspection).
Fashions headed by Beverly Somera (Cabreza 2001) claim that they legally import these
goods, bear the import costs, and pay the corresponding taxes imposed on such imports.
On the other hand, one of the retailers interviewed for the study did say that they have
been cooperating with a nongovernmental organization (NGO) to process the papers for
the entry of ukay-ukay. These goods will enter the country as donations under the name
of this NGO. However, what happens next after the goods arrive are internally arranged
between the NGO and the retailer. Residents of Baguio City claim that the supply of
secondhand clothing comes from local individuals. These individuals trade their own
clothing to ukayukay and wagwagan retailers. Moreover, some overseas Filipino workers
(OFWs) would engage in purchasing secondhand clothing and sending it locally as their
own pasalubong to their respective families. Local consumers have been claiming that the
emergence of these stores in Baguio City (as well as in urban centers and nearby
provinces across the country) are the signs of the times (Cabreza 2001). The continued
consumer demand for ukay-ukay and wagwagan may be attributed to the fact that not
even 25
percent of the actual price of brand new clothing and garments can match thelow prices
of secondhand clothing. With increasing prices, people would tend to cut expenditures on
clothing (on the assumption that their incomes cannot cope with inflationary effects).
However, among the ukay-ukay retailers, colonial mentality persists: They impose higher
prices for branded secondhand commodities, but put the price ceiling at 75 percent of the
actual price of brand new counterpart clothing.
Interviews with retailers and consumers of ukay-ukay and wagwagan goods uncover
certain possible solutions to the problem that beset the national government and the city
council of Baguio. In general, the interviewees disagree with the national government's
plan to confiscate and burn the goods. Rather, foreseeing a continued increase in the
number of secondhand clothing and garments sellers, the interviewees favor a control in
the number of ukay-ukay shops and stalls.
On the other hand, other survey respondents—those who do not patronize ukay-ukay and
wagwagan goods—suggest that the government must strictly implement the laws ratified
years ago, with no exceptions. To mitigate the adverse effect of such as a proposal on the
existing stalls—businesses that have employees relying on this industry for their
income—a contingent program would have to be in place.
CLOTHING INTEREST AND SHOPPING PATTERNS
OF USED-CLOTHING-STORE PATRONS
by Jeanette Carolyn Christie
As consumers, we are all involved in the continuous task of securing those items that we
feel are necessary for our existence. However, in recent years, these necessitieshave been
more difficult to obtain because of the economiccrisis our country is experiencing (12).
For many individuals,there is a need for serviceable low cost clothing.The used-clothing
store can provide this type of clothing,generally at a lower cost than clothing purchased
from aretail-clothing store (4).Used-clothing from the United States has long
beenaccepted for purchase by people of other nations (16). Inpast years, however, Peters
(15) reports the Americanconsumer in only the lower socio-economic class has
acceptedthe used-clothing outlet.The number of second-hand or used-clothing stores
inthe United States is on the increase (21, 22). Nearly all Americans are familiar with the
typical Goodwill Industries store, but few people are familiar with used-clothing stores
that deal in high fashion. An example of the latter is a New York City shop, "Encore,"
with a branch store in Washington, D.C. At "Encore," designer clothes of the wealthy are
resold to the less wealthy at about one-third of the original price. The owner of the shop
then divides the profits with the original owner of the garment. This method of disposing
of once-worn clothing gives a better incentive than a tax deduction for donations of
clothing to The Salvation Army (11). Researchers have studied the socio-psychological
reasons why people select certain clothing, but very little research has been done
concerning the purchase of usedclothing. This research will attempt to determine if
clothing interests of used-clothing-store patrons are similar to clothing interests of retail-
clothing-store patrons. In addition, the used-clothing store will be studied as a possible
market for both purchasing and discarding clothing.
A list of used-clothing stores in Lubbock County, Texas, was compiled. There were four
businesses in the area in which over 50 percent of sales were consignment usedclothing.
After discussing the research plan with the managers of each business, patrons from all
stores were used in the research sample. The patrons of the stores were 19 volunteer
respondents. Questionnaires were distributed at each store for one business day by the
researcher. Because of the small number of customers per day at the stores, store
managers distributed additional questionnaires to patrons from June to September 1980.
A list of 300 households was compiled from the Lubbock, Texas, telephone directory by
means of a table of random numbers (14). A telephone call was placed to each number on
the list, 116 women were contacted. The remaining numbers were disconnected numbers,
no answer, or no female in the household. One hundred ten of the 116 women were
selected for participation in the study because they had not shopped in used-clothing
stores.
The test packet containing a letter of introduction and the General Clothing Interests
Questionnaire was administered in Lubbock County, Texas, from June to September
1980, to both used-clothing store patrons and retail-clothing-store patrons. Questionnaires
were coded U for used-clothing-store patrons and R for retail-clothingstore patrons. The
research subjects were asked to complete the questionnaire and return it in the addressed,
stamped envelope which was included in the packet. A total of 0 packets were
distributed, 110 to used clothing-store patrons and 110 to retail clothing-store patrons.
Thirtyeight usable responses were obtained from used clothingstore patrons, a total of 34
percent. The retail-storepatrons returned 83 of the 110 questionnaires, a total of
75 percent.
The Survey of Used-Clothing-Store Managers, concerning the policies of used-clothing
stores and shopping patterns of used-clothing-store patrons, was distributed to 4 9
managers. Twenty-five usable responses were obtained(51 percent). Frequency
distributions and percentages werecalculated for each question.
The Impact of Second Hand Clothes and Shoes in East Africa
Esther Katende
The overall objective of this Study is to review the state of play of used clothing
and shoes imports within the region, analyze the implications of the EAC Heads of States
ban on Second Hand Clothing (SHC) imports in the EAC Community and examine
practical approaches to implementing the ban. A dual approach of literature review and
gathering first-hand information through interviews of stakeholders in the EAC was
utilized.
Overall, the importation of SHC has been growing in all the EAC Partner States with the
value imported in the EAC in 2015 amounting to $151 million. SHC are deemed to be
cheaper and of better quality than the new clothing available on the market, hence the
demand for SHC is quite high in all the Partner States. The SHC are cheaper than the new
clothing in all the EAC States and the largest importers of SHC into the EAC are from
USA, UK, Canada and China.
There is generally a negative impact of SHC trade on the textile and leather
industry of any country. This was proved by a model created by Garth (2008) that
showed that there is a negative relationship between a recipient country’s textile
production and textiles imports, with a 1 percent increase in SHC imports resulting in a
0.61 percent reduction in apparel production. The EAC Partner States are not exempted
from Garth’s findings. On the environment, research (Farrant, Olsen & Wangel, 2010)
shows that the purchase of 100 second-hand garments can save between 60 and 85 new
clothing and collecting 100 garments for reuse would lead to between 14 percent
decrease of global warming for the cotton T-shirt to 45 percent reduction of human
toxicity for the polyester/cotton trousers. However, when this is compared to the cost of
SHC in the EAC region, especially regarding the growing decline of the textile, apparel,
leather and related sectors, (such as cotton in Uganda and Tanzania and silk in Rwanda),
it can be argued that the environmental cost is minimal.
The overall objective of this study is to review the state of play of used clothing and
shoes imports within the region and to analyze the implications of the SHC ban so as to
inform policy discourse on effective approaches in implementing the ban in the EAC
community.
At the inception stage the team reviewed background documentation and met with the
EAC Secretariat to clarify the objectives of the study and to identify the main concerns
for the Secretariat. In developing the study, a dual approach of literature review and
gathering first-hand information through interviews of stakeholders in the EAC was
utilized. Interviews were conducted with major stakeholders in the EAC including major
importers of SHC, local manufacturers of similar products, relevant government
ministries and agencies as well as ordinary SHC consumers. The team also collected
data on SHC from the different Partner State import/export databases.
It should be pointed out from the onset that the researchers were not able to obtain
disaggregated data for second hand clothes and second hand shoes. All the data obtained
from the different Partner States, the EAC Secretariat and existing literature was
aggregated data which was identified as Second Hand Clothing data.
Table 2-2: Global Share of Second Hand Clothing Imports, 2015 Rank Country
Percentage
1 Pakistan 10.2%
2 Malaysia 7.1%
3 Russian Federation 5.8%
4 India 5.5%
5 Tunisia 4.6%
6 Guatemala 4.3%
7 Netherlands 3.4%
8 Germany 3.4%
9 Hungary 3.3%
10 Uganda 3.2%
11 Poland 3.1%
12 Mozambique 3.1%
13 Chile 3.1%
14 Tanzania 3.0%
15 Canada 3.0%
16 Others 33.9%
Source: UN Comtrade
Table 2-2 shows that Uganda and Tanzania are among the top fifteen world
importers of SHC. This implies that a lot more work is going to have to be done by these
two countries within the EAC to effectively implement the ban and create viable
alternatives for their consumers. It also means that the ban is likely to be opposed by the
key exporters, hence the need for the EAC to adequately prepare to address any
contentions that may arise from the implementation, in 2019.
The Impact of the Use of Second-Hand Clothing on the Garment and Textile
Industries in Ghana: A Case Study of the Ho Municipality
By: Agra Florence Emefa Gbadegbe Richard Selase Amankwa Joana Gbetodeme Selorm
The influx of second hand clothing onto the Ghanaian fashion market has hit the
peak. About 90% of clothes used in Ghana are of second hand origin. This development
invariably has negative effect on the Garment and Textile Industries in Ghana to the
extent that some of the industries are gradually folding up due to low patronage of their
products. This study was conducted to investigate and verify the extent of damage the
patronage of second hand clothing has caused and continues to cause the Garment and
Textile Industries in Ghana and the solutions thereof. The descriptive (qualitative)
research approach was employed to describe the
various stages of the study. The following research instruments were used to collect data
for the study: questionnaire, observation and interview. The Target Population for the
study was (250) made up of (200) second hand clothing dealers and (50) users from the
general public. The Random Sampling technique was used to arrive at a Sample size of
(75) which represents 30% of the Target Population. This was made up of (50) second
hand clothing dealers and (25) users from the general public. The main findings of the
study were that most Ghanaians patronize second hand clothing because of its low price,
the use of second hand clothing has health implications to the wearer and the over-
dependence on second hand clothing negatively affects the revenue of Garment and
Textile Industries in Ghana. It is therefore recommended that adequate steps be taken by
the government to ban the importation of those second hand clothing which are likely to
have health implications to the wearer. Examples of such category of clothing include:
under wears, under pants and brassiers. Additionally, made-in-Ghana clothing and
Textiles must be re-branded and priced moderately to attract potential buyers. The
government of Ghana.
Population is any group of individuals that have one or more characteristics in common
which are of interest to the researcher. The population of interest comprises second hand
clothing dealers in Ho central market and some members of the general public who
patronize “folks”. These groups of people were considered in view of their understanding
of the research topic and the essence to the accuracy of the data. The Target Population
summed up to two-hundred and fifty respondents (250) made up of two hundred (200)
second hand clothing dealers and fifty (50) users of second hand clothing from the
general public.
The pie chart below shows the gender distribution of respondents (wholesalers) who
participated in the study. In the chart, 59.5% of the 50 wholesalers who participated in the
study are female while 40.5% are male. This implies that more female are involved in the
sales of second hand clothing than the male.
Table1 below describes the Age Distribution of Wholesalers of second hand clothing.
This table reveals that 25 respondents are within the age bracket of (36-45) representing
50% of wholesalers which is indicative of the fact that majority of second hand clothing
dealers are in their youthful age. Perhaps this is attributable to the strenuous nature of the
second hand clothing business. The least among the age groups is between 18 and 25
representing 8% of the wholesalers. Eleven (11) of the respondents representing 22% of
the wholesalers are within the age bracket of (26-35). The last but not the least, Ten (10)
respondents representing 20% of wholesalers are within the age bracket of 46 and 55.
Responses of the General Public to the question “why do you prefer second hand
clothing to other types of clothing”?
The patronage of made-in-Ghana fabrics and clothing is critical for the economic
development of Ghana. Year in year out, the Garment and Textile Industries in Ghana do
their bit by producing excellent and quality products for the consumption of Ghanaians
and the world at large. Clothing is a very important amenity for the survival of man.
Clothes protect us from hot and cold weather conditions and in the process give us
identity and livelihood. One can imagine a world without clothing. What a world it will
be? Morality, decency and Godliness would be thrown to the wind. Nudity, indecent
dressing and moral decadence would be the order of the day. Gradually, the dark clouds
are falling on the Garment and Textile Industries in Ghana.