Starting an Ukay-Ukay business in the Philippines continues to be one of the most popular and profitable low-capital business ideas. With the rise in demand for affordable fashion and sustainable shopping, ukay-ukay stores are booming across urban and rural areas alike.
This guide will walk you through everything you need to know—from capital and sourcing to business registration, costing, and marketing strategies.
What is an Ukay-Ukay Business?
“Ukay-ukay” comes from the Filipino word halukay, meaning “to dig.” These stores sell pre-loved clothes, bags, shoes, and accessories imported in bulk. Items are usually sold at bargain prices, making it attractive for budget-conscious shoppers and fashion-savvy customers looking for rare finds.
Capital Requirements to Start an Ukay-Ukay Business
Launching an Ukay-Ukay store can be relatively low-cost, depending on factors like location and store size. Here’s a breakdown of potential expenses:
| Business Size | Estimated Capital (PHP) |
|---|---|
| Home-based Seller | ₱10,000 – ₱30,000 |
| Small Storefront | ₱50,000 – ₱100,000 |
| Medium Store | ₱150,000 – ₱300,000 |
Cost Breakdown:
- Initial bale/supply: ₱5,000 – ₱20,000
- Rental space: ₱5,000 – ₱30,000/month
- Shelves, racks, lighting: ₱10,000 – ₱50,000
- Business permits: ₱3,000 – ₱7,000
- Marketing materials: ₱2,000 – ₱5,000
Business Registration Requirements in the Philippines
To operate legally, complete these:
- Register Business Name: Visit the Department of Trade and Industry (DTI) for sole proprietorship or the Securities and Exchange Commission (SEC) for partnerships/corporations.
- Barangay Clearance: Obtain from the local barangay office where your store will operate.
- Mayor’s Permit: Apply at the city or municipal hall.
- BIR Registration: Register with the Bureau of Internal Revenue to obtain a Tax Identification Number (TIN) and authority to print receipts.
Be aware that Republic Act No. 4653 prohibits the commercial importation of used clothing. Ensure your inventory is sourced legally.
Where to Source Ukay-Ukay Items in Bulk
You can buy ukay-ukay bales from local importers or directly from wholesalers. Look for:
- Garments labeled “Class A” or “Premium”
- Categories: branded jeans, jackets, shoes, bags, kidswear
- Bale pricing: ₱5,000 to ₱25,000 depending on type and quality
Tips:
- Start with a mix of categories to test your market.
- Avoid overstocking early on to reduce spoilage or dead inventory.
Costing and Pricing Strategy
Your markup can range between 50% to 200% depending on item quality.
| Item Type | Buy Price | Sell Price |
|---|---|---|
| Branded Tops | ₱30 | ₱100–₱150 |
| Jeans | ₱70 | ₱200–₱350 |
| Jackets | ₱120 | ₱350–₱500 |
| Bags & Shoes | ₱150 | ₱400–₱800 |
Offer bundle deals or loyalty cards to attract repeat customers.
Feasibility Study for Ukay-Ukay Business
Estimated Monthly Sales:
If you sell 500 items/month at ₱120 average:
₱60,000 Gross Revenue
Expenses Estimate:
- Rent: ₱10,000
- Labor: ₱8,000
- Utilities: ₱3,000
- Supplies: ₱2,000
- Total: ₱23,000
Net Profit:
₱60,000 – ₱23,000 = ₱37,000/month
Return on investment (ROI) is achievable within 2 to 4 months depending on location and strategy.
Marketing Strategy to Boost Ukay-Ukay Sales
Offline Tactics:
- Eye-catching signage
- Seasonal sales and bundles
- Partner with local influencers
- Join weekend markets or bazaars
Online Tactics:
- Create a Facebook Page or TikTok Shop
- Post daily item drops and “live selling” sessions
- Offer “reserve and pick-up” options
- Use hashtags like #UkayPH, #ThriftFindsPH, #FashionTipid
SWOT Analysis of Ukay-Ukay Business
| Strengths | Weaknesses |
|---|---|
| High demand, low capital | Quality inconsistency |
| Fast ROI | Inventory spoilage if unsold |
| Flexible location choices | Legal gray areas if unregistered |
| Opportunities | Threats |
|---|---|
| Growing eco-conscious market | Regulatory crackdowns |
| Digital selling expansion | Increased competition |
Tips for Success
- Choose a strategic location with high foot traffic.
- Keep your shop well-ventilated and organized.
- Understand your target audience (e.g., Gen Z, budget moms, students).
- Reinvent your store as a “curated thrift boutique” for higher pricing.
Final Thoughts
The Ukay-Ukay business remains one of the best low-investment business ideas in the Philippines. With proper sourcing, smart pricing, and effective marketing, you can turn this side hustle into a full-time, income-generating venture.