The pre-loved clothing market has emerged as a key player in the ongoing push for sustainability within the fashion industry, presenting a promising alternative to traditional fashion consumption. As concerns about environmental impact and waste continue to grow, pre-owned clothing offers a solution by promoting recycling and reducing the demand for new garments. This market not only contributes to environmental sustainability but also provides unique consumer experiences that resonate with modern values. With the global focus shifting towards an eco-friendly consumption, the pre-loved clothing sector has begun to attract a diverse range of consumers, who prioritize both style and sustainability. However, while the sector shows immense potential, it also faces certain challenges that may hinder its growth. The marketability of pre-loved clothing is largely driven by younger consumers, particularly millennials and Generation Z, who value both affordability and the ability to express their individuality. Pre-owned fashion offers an opportunity to acquire unique, one-of-a-kind pieces that cannot be found in conventional stores, making it an attractive option for fashion-forward buyers (Lan & Watkins, 2022). Additionally, businesses like Sepatu Thrift Singapura are capitalizing on digital innovation to enhance their reach and visibility, utilizing online platforms to create seamless shopping experiences and expand their customer base (Serenade et al., 2024). This digital revolution has played a pivotal role in changing the landscape of secondhand fashion, transitioning it from niche charity shops to a thriving market that includes high-end products, especially in developing economies.  

The sustainability aspect of the pre-loved clothing market is rooted in the principles of circular fashion, which advocates for reusing and recycling garments to reduce waste and resource consumption (Arora & Dhama, 2023). Circular business models encourage the adoption of resale and rental strategies, which not only help to conserve resources but also foster community engagement by promoting shared consumption (Cardoso et al., 2024). This shift towards more sustainable fashion practices has attracted both consumers and businesses seeking to align with environmental goals. By keeping clothes in circulation longer, pre-loved fashion significantly mitigates the harmful effects of fast fashion, contributing to a more sustainable future for the industry. Furthermore, Apolinar et al. (2015) agreed that a secondhand garment or ukay-ukay business is a recession proof.  In good times, second-hand garment appeals to trendy youth, frugal parents, and eco-friendly consumers. 

In 1966, the Philippines enacted RA 4653, an Act that declares it illegal to commercially import used textiles into the country. The rationale behind the Act is to safeguard the health of the Filipino people from potential health hazards that used clothing may carry, and to maintain the dignity of the nation by refusing to receive the discarded items of other nations. Despite this law, imported secondhand clothing, locally known as ukay-ukay is widely and openly patronized all over the country. As for ukay-ukays impact on the local fashion industry, it is either only a minor threat to the local industry, or, counter intuitively, a complementary one. These two industries have different markets, so ukay-ukay does not compete with the local industry for consumers. The decline of the local fashion industry is also often attributed to the rise of ukay-ukay in the country, but it shows that the two do not have a causative relationship; they just happened to occur at around the same time period (Sing & Esquivias, 2019).

Sorensen and Jorgensen, (2019) asserted that the things that millennials purchase and their effects on society and the environment are becoming more important to them. However, there are no many options available to millennials with low disposable budgets in todays market, and it is unclear how these customers view fast fashion and used clothing. Different millennials have different opinions, which led to the development of four unique variables for fast fashion and used clothing. Consignment stores and fast fashion merchants will have to revise their future plans to appeal to the millennial generation.

A lot of young people have recently started this type of business, and competition is getting fierce.  Furthermore, fashion trends are changing from time to time and the rise of ready to wears has become a threat to the secondhand industry as ready to wears are much more affordable compared to before (Te et al., 2021). Additionally, Kawulur et al. (2022) averred that purchasing used goods is more affordable than buying new ones. It is impossible to isolate the rise in second-hand purchases from Generation Z customers, who also end up becoming consumers, who began purchasing these goods three years ago. Most members of Generation Z are women, and they enjoy buying used items online, particularly clothing. Regarding the purchase intentions of Generation Z, the following elements influence their decision to buy used goods: trust, nostalgia, the need to stand out from the crowd, and a preference for inexpensive costs. In the meantime, Generation Z does not consider the negotiation element often involved in buying and selling when purchasing secondhand things. Recent fast production and consumption trends are increasing the ever-greater volume and value of wasted clothes. According to Hur, (2020) alternative consumption models for used goods, or the circular economy, have gained attention. Nonetheless, not much research has been done to gain a thorough grasp of the attitudes, values, and motivations of consumers-whether positive or negative-that underlie the purchase of used apparel. Among consumers of used apparel, five key values have been found. These encompass ideals related to economics, self-expression, hedonism, the environment, and social contributions. Due to perceived low product quality and cleanliness, restrictions on the extent of potential self-enhancement and self-identity expression, and a perceived social image of the clothing as low class and having low social acceptance, consumers who did not purchase secondhand clothing showed concerns about secondhand clothing consumption.

With the above premise, the researcher wanted to find out the marketability, sustainability, and challenges of pre-loved clothing and local fashion industry in Kalibo, Aklan, Philippines. Moreover, there was a dearth of literature to assess the scope of the gaps and what mechanisms to be done for the challenges encountered by the owners of the said industries.

This study utilized a case study research design. According to (Yin, 2018), a case study is a research method that involves an in-depth, detailed examination of a subject, which could be an individual, group, organization, event, or phenomenon. This approach is used in social sciences, business, education, and health fields, and it aims to explore real-world applications, challenges, and solutions. Case studies often include quantitative and qualitative data, providing a comprehensive view of the subject and its context. 

Case study design was particularly appropriate for this because it allowed for an in-depth exploration of a specific, real-world phenomenon within a particular context. By focusing on Kalibos local fashion industry, this design enabled the researcher to analyze the pre-loved clothing, including its marketability, sustainability, and the challenges faced by local stakeholders. This approach facilitated a detailed examination of the interactions among various factors, such as consumer behavior, environmental considerations, and local economic conditions, making it well-suited for understanding the complexities of the topic and offering practical insights specific to the local context. Moreover, data source triangulation was employed. The collection of data from different types of people, including individuals, groups, families, and communities, to gain multiple perspectives and validation of data were done in the study. Triangulation is a technique used to improve the validity and trustworthiness of study findings, according to Carter et al. (2014). According to Noble and Heale, (2019) validity is the degree to which a study appropriately reflects or assesses the concept or concepts under investigation, whereas credibility is the degree to which a study is reliable and believable.

Since the study was qualitative in nature, the researcher employed Focus Group Discussions (FGD) as the primary method of data gathering to gain a deeper understanding of the marketability, sustainability, and challenges within the pre-loved clothing and local fashion industries. Focus groups are a common qualitative research method that entails assembling a small number of participants to have in-depth discussions about a certain topic or issue under the direction of a moderator. The aim of using FGD was to delve into participants opinions, behaviors, beliefs, and experiences regarding the subject matter.

The data collection process took into consideration both the participants environment and preferred timing. Focus Group Discussion (FGD) was utilized to gather the data. After the discussions were transcribed, the researcher translated the data and had it reviewed for accuracy and reliability by a language expert. To mitigate potential translation issues, a back-translation method, as outlined by Merriam and Tisdell, (2016) was employed.  This method involved a bilingual individual or language expert translating the English version of the responses back into the original language to ensure accuracy.  In this study, the qualitative data, originally in Akeanon, was translated verbatim into English. Subsequently, participant validation and triangulation were conducted to confirm the trustworthiness and cogency of the findings. The data were then analyzed using an inductive and comparative qualitative data analysis approach of Merriam and Tisdell.

As emphasized by Carter et al. (2014) data triangulation through the use of Focus Group Discussion (FGD) in qualitative research can lead to a more comprehensive as well as refined comprehension of the phenomenon under investigation. By allowing participants to interact and share views in a group setting, the researcher was able to obtain valuable data that supported a deeper exploration of the research questions. Furthermore, the study by Eeuwijk and Angehrn, (2017) highlighted that FGD is an effective method for collecting qualitative data, as they facilitate the sharing of participants attitudes, perceptions, knowledge, and experiences. The dynamic nature of group discussions promotes interaction and reflection, providing a richer context for understanding the subject matter.

Using the FGD, this research was able to gather detailed, context-rich data that addressed the key research objectives and provided meaningful insights into the pre-loved clothing market and the local fashion industries. The focus group approach allowed for the exploration of shared and divergent perspectives, which contributed to a profound understanding of the complexities within the studys focus areas.

Based on this analysis, the study arrived the following findings. The result revealed that the pre-loved clothing industry employed a variety of marketing strategies, focusing on multi-channel marketing, quality control, customer engagement, promotional tactics, audience targeting, and feedback mechanisms. Social media platforms such as Facebook, Instagram, and TikTok served as the primary tools for visibility and customer interaction. Strategies like live selling, creating multiple Facebook pages, and integrating Shopee were effective in attracting tech-savvy and price-conscious consumers, while enabling real-time product promotion and engagement. Quality control played a significant role with meticulous inspection of pre-loved items, ensuring customer trust and satisfaction. Transparency about the condition of products fostered loyalty and encouraged repeat purchases. Flexibility in customer engagement further strengthened relationships with businesses offering discounts, accommodating cancellations, and adapting to customer preferences to enhance satisfaction and loyalty. Promotional strategies such as competitive pricing, Buy 1 Take 1 offers, and bulk discounts attracted price-sensitive buyers. The use of visually appealing teasers further enhanced these promotional efforts. Targeting specific groups, like teachers, allowed businesses to tailor their offerings and create a niche market. Additionally, segmenting products based on dress codes and occasions added to their relevance and appeal. The feedback mechanisms of consumer, including trend analysis and surveys, were vital for understanding preferences and refining strategies. Tracking trends and gathering feedback enabled businesses to anticipate demand and stay competitive in a dynamic market. This integrated approach demonstrated the importance of leveraging digital platforms, maintaining quality, and focusing on customer-centric practices to thrive in the pre-loved clothing industry. 

Both the pre-loved clothing business and the local fashion industry shared similar marketing strategies centered on customer satisfaction, personalized service, and adaptability. In both sectors, businesses prioritized understanding and responding to customer needs, whether through social media platforms in the case of pre-loved clothing or personal referrals and word of mouth in the local fashion industry. Both also emphasized offering high quality products, such as well-checked pre-loved items or well-tailored garments and ensuring transparency about their conditions and limitations. Additionally, both industries were flexible in terms of pricing, offering promotions or discounts to attract customers, while also adapting their inventory or services to meet specific customer preferences and market demands. Moreover, they both recognized the importance of targeting demographics, such as teachers in the pre-loved clothing market and gender-specific tailoring or LGBTQ customers in the local fashion industry. Ultimately, the strategies used by both industries were designed to foster trust, enhance customer loyalty, and encourage repeat business, demonstrating a strong alignment in how they approach their respective markets. This only implies that social media, particularly Facebook plays an important role in marketing strategy. This was supported by live selling, which had gained significant traction as an interactive marketing strategy, particularly on platforms like Facebook, Instagram, and TikTok. This multichannel approach enables businesses to cater to diverse consumer preferences, ensuring comprehensive coverage of their target market. 

Meanwhile, the marketing strategies of Aklans local fashion industry, highlighted word of mouth, quality control, customer engagement, and promotional tactics. Word of mouth was a key channel, with participants relying on client referrals over social media due to familiarity and trust. Quality control focused on tailoring and inspection to ensure that garments meet client expectations. Customer engagement emphasized personalization and flexibility, aligning with studies that underscored the importance of adaptive strategies. Promotions included pricing discounts and customer service, balancing financial incentives with long-term loyalty. Target audience segmentation involved tailoring services to diverse consumer groups, including the LGBTQ community. Experiential learning reflected participants adaptability to challenges and evolving client needs.

Conferring to Chen et al. (2021), live streaming allows sellers to engage with customers in real time, answer queries, and demonstrate products, creating an immersive shopping experience. Gretzel, (2020) also mentioned that TikTok, with its short-form video content, has also become a powerful tool for viral marketing, enabling brands to reach younger audiences effectively. Instagram, on the other hand, is preferred for its visual appeal, allowing businesses to showcase products through high-quality images and influencer partnerships. Likewise, Verhoef et al. (2015) argued that the integration of multiple marketing channels and platforms is a strategic approach that allows businesses to maximize their reach and adaptability. Studies suggest that combining digital platforms like Facebook, Shopee, and Instagram with traditional methods such as word of mouth creates a cohesive and effective marketing strategy. According to a report by the Boston Consulting Group, (2022) the global resale market for apparel, footwear, and accessories has tripled since 2020, reflecting a dramatic shift in consumer preferences toward sustainability and affordability. This surge is largely driven by environmentally conscious consumers who seek to reduce waste through the purchase of secondhand items. In addition, technological advancements are playing a crucial role in enhancing the pre-loved shopping experience. Thred Up, a major online resale platform, recently integrated Artificial Intelligence (AI) tools to improve its user experience, resulting in a 38% increase in searches on its platform (Time, 2023). This suggests that the integration of technology can significantly boost consumer engagement and ease of use, further fueling the growth of the secondhand fashion market. A report from Vogue Business, (2023) noted that eBay has showcased secondhand clothing on prestigious fashion runways in New York and London. This move has helped to elevate the status of pre-loved fashion, promoting it as not only a sustainable choice but also a trendsetting one. These developments point to a growing mainstream acceptance of secondhand fashion as both an ethical and fashionable option for consumers. 

Moreover, this also outlined the sustainability strategies used by pre-loved clothing businesses, focusing on areas such as adapting to trends, maintaining consistent operations, fostering customer relationships, implementing sustainable pricing, managing unsold products, efficient capital management, identifying growth opportunities, monitoring competitors, and demonstrating perseverance and creativity.  One of the primary strategies employed was adapting to trends, particularly to cater to younger, trend-conscious buyers. Staying updated with the latest fashion styles enabled businesses to attract and retain customers who seek the latest looks influenced by social media and celebrity culture. Younger consumers, in particular, were highly influenced by online platforms like Instagram and TikTok, which drive demand for new and trendy items. To remain competitive, businesses may continuously monitor and adapt to these fast-evolving trends. Consistency in business operations also emerged as a vital strategy. Many entrepreneurs highlighted the importance of maintaining regular posting schedules and sales activities to build customer trust and loyalty. Regular engagement ensured visibility and created a sense of reliability, encouraging repeat customers and strengthening market presence.

Furthermore, the analysis outlined several key strategies that local fashion businesses used to manage operations and foster growth. Discounting and re-offering goods were common approaches to clear excess inventory, but these need to be carefully executed to avoid damaging the brands value. Self-financing offered independence, but loans helped fund expansion, though they risk over-leveraging. Scaling staff and production was also essential to meet growing demand, but required careful financial planning and integration of automation for efficiency. Monitoring market trends and competitors helped businesses stay agile and respond to changes in consumer behavior. Service diversification enabled businesses to meet evolving customer needs and stay competitive. The study also identified strategies small pre-loved clothing businesses used to build customer loyalty and manage challenges. Discounts, special promotions, and loyalty cards helped retain customers, while social media and word of mouth marketing drove promotion. Borrowing and family support were common financial coping mechanisms. Partnerships with suppliers and collaboration with employees enhanced resilience, while personalized service strengthened relationships, such as flexible payments and gifts for loyal customers.

This finding implies that expanding the range of services may be a key strategy for driving product innovation. As indicated by the four participants, diversifying services could help businesses meet evolving customer needs, enhance competitive differentiation, and open new growth opportunities. This suggests that companies may consider broadening their service offerings to stay relevant in a dynamic market environment. The result further implies that pre-loved clothing business and the local fashion industry shared key strategies for staying competitive, such as aligning product offerings with current trends and maintaining consistency in customer engagement. Both emphasized the importance of diversifying products whether through offering bulk discounts or introducing new lines like custom work to attract a wider audience. Competitive pricing and promotional strategies, like offering discounts or payment terms, are crucial in both sectors to retain customers and move inventory. Additionally, both industries recognized the importance of perseverance and adaptability in the face of fluctuating demand, whether through seasonal adjustments or the ability to shift product offerings. Social media served as a vital tool for both, helping businesses stay visible and connected with customers, expanding reach, and supporting growth.

A research by Barros and Ferreira, (2021) explored the impact of service diversification on firms ability to innovate within traditional sectors. They found that service innovation through expansion allowed firms in more traditional industries to break through barriers to innovation, increasing both their market share and profitability. This evidence suggests that service expansion can revitalize established businesses and enable them to remain competitive in an increasingly service-oriented economy. Further, a study by García-Morales et al. (2020) emphasized the strategic importance of service innovation in fostering competitive advantage. They found that companies that proactively expand their service offerings tend to exhibit higher levels of customer satisfaction, which in turn contributes to long-term organizational performance. This aligned with the concept that service diversification enhances customer retention by addressing a broader spectrum of needs and preferences, thus creating new growth opportunities. In their recent work, Chen and Huang, (2022) explored the relationship between service innovation and market performance, highlighting that businesses that expand their service portfolios are better equipped to respond to market disruptions and changing consumer demands. Their study demonstrated that firms engaging in continuous service innovation experience improved market positioning and operational efficiency. This underscored the role of service innovation as not just a tool for product differentiation but also as a strategic mechanism for sustaining business growth in competitive industries.

Additionally, this study also highlighted challenges in the pre-loved clothing industry, including sourcing reliable suppliers, managing employees, handling customer expectations, ensuring product quality, and pricing.  Securing trustworthy suppliers for bulk orders was tough, and finding skilled employees to handle and repair items was a major hurdle. Customer service issues stemmed from misunderstandings about pricing and product condition, requiring clear communication. Product quality was also challenging due to the condition of pre-loved items, often needing repairs. The local fashion industry faced similar challenges, such as workforce management issues like inconsistent staff performance, motivation, and recruitment difficulties. These required better training, compensation alignment, and retention strategies. 

The result aligned with that of Smith and Williams, (2019) that businesses in the pre-loved clothing industry often struggle to build strong, long-term relationships with suppliers due to the irregular nature of supply and demand. This variability can lead to issues such as product shortages or excess inventory, which ultimately affects operational efficiency. Similarly, Benson et al. (2018) emphasized the importance of maintaining robust supplier networks and conducting regular quality checks to mitigate the risk of receiving subpar goods. However, the challenge remains significant, particularly in bulk sourcing, where suppliers may not prioritize quality control as much as they would in more established industries. According to Jones et al. (2020), sourcing pre-loved clothing from trustworthy suppliers can be a challenge due to the variability in product quality and the absence of standardized practices in the resale market. This is further compounded by the reliance on bulk suppliers who may not always meet the demand for quality and consistency. Moreover Fletcher, (2021) suggested that businesses in the pre-loved clothing market may focus on developing better sourcing strategies, such as diversifying suppliers and establishing long-term contracts that ensure consistency in product supply. This could help mitigate some of the sourcing challenges that small businesses often face. The need for a more systematic approach to supplier and product sourcing was further supported by Kumar and Singh, (2022) who argued that companies that successfully navigate sourcing challenges can gain a competitive advantage by offering a more reliable and diverse range of products (Saha et al.,  2020).

The major themes that emerged from the result were the importance of customer experience and relationship management as coping mechanisms. Specifically, personalized service and advice were mentioned by two out of the eight participants as strategies for strengthening customer relationships and addressing challenges. This indicated that providing tailored services and guidance could be an effective approach for enhancing customer satisfaction and loyalty during difficult times. In the local fashion industry, coping mechanisms included teamwork, customer relationship building, financial management, partnerships, and community engagement. The participants highlighted teamwork and mutual support as key to overcoming obstacles. Personalized service, tailored to individual needs, fostered customer loyalty and repeat business as noted by three participants. Financial management, including borrowing from family, provided a safety net during financial strain. Supplier partnerships were recognized as vital for business stability, allowing flexibility in supply chains. Community engagement, through word of mouth referrals, helped attract new customers.

The result implies that teamwork and collaboration are valued strategies for overcoming challenges within the industry. This suggests that working together can be seen as a critical tool for resilience and problem-solving in the local fashion sector. In creative industries such as fashion, resilience is often viewed as a collective rather than individual trait. It also entails that while personalized service and advice are seen as valuable strategies by some participants, their relatively limited mention indicates that this approach may not be universally prioritized across all organizations. This highlights an opportunity for businesses to consider placing more emphasis on customizing customer interactions and providing personalized guidance as a way to strengthen customer relationships and improve resilience during challenging times. By doing so, businesses may enhance customer loyalty and satisfaction, contributing to long-term success. The result also infers that positive word of mouth can help build trust, attract new customers, and strengthen community ties, which may be especially valuable in times of financial or operational stress.

The result agreed to that of Rohm et al. (2022) that personalized interactions, such as tailored recommendations and individualized support, help companies build stronger relationships with customers and improve overall satisfaction. It highlighted that consumers are more likely to stay loyal to brands that demonstrate understanding and responsiveness to their unique needs. Nash et al. (2021) investigated the role of relationship building in customer retention during a crisis. The study shows that companies that emphasize personalized service and maintain strong relationships with their customers can effectively manage through difficult times. Personalized communication, such as offering tailored advice and responsive service, was found to increase customer retention and trust during periods of economic or societal uncertainty. Conferring to Duffy, (2015) collaboration enables individuals within creative sectors to share knowledge, provide emotional support, and strengthen their networks, all of which contribute to collective resilience. Fashion entrepreneurs, for example, may rely on partnerships and alliances with suppliers, designers, and other stakeholders to cope with the fast-paced and unpredictable nature of the industry. A study by Cillo et al. (2018) emphasized that collaboration between designers, producers, and retailers can enhance innovation and coping mechanisms in the fashion supply chain. This collective effort is particularly useful in responding to market demands and production issues, ensuring business continuity and competitive advantage.

The result of the study also aligned to what Brown and Reingen, (2021) asserted that word of mouth plays a crucial role in developing trust between businesses and their customers. Positive recommendations from customers act as informal endorsements, helping businesses build credibility, especially when facing external challenges. In the fashion industry, where trends shift rapidly and customer loyalty is highly valued, word of mouth can significantly reduce marketing costs and improve customer retention.  Correspondingly, Lee and Hwang, (2022) noted that the word of mouth helps businesses grow organically, particularly when other marketing channels are unavailable or too costly.  This is especially true for fashion businesses that may not have large advertising budgets.  Positive word of mouth within the community can be a vital tool for business growth and survival during challenging times.  Additionally, a research by Lin et al. (2022) emphasized the role of community engagement in enhancing business resilience. Their study suggested that businesses that actively engage with their local communities and encourage the word of mouth not only strengthen relationships with their current customers but also attract new ones.  In the fashion industry, where consumer behavior is influenced by social dynamics and personal networks, community engagement through the word of mouth could help businesses maintain visibility and customer loyalty during tough times.

Leveraging social media platforms like Facebook, Instagram, and TikTok, alongside personalized customer service and flexible pricing strategies, helps businesses cater to a broad audience. Additionally, staying attuned to trends and maintaining customer trust through transparent product conditions are crucial for sustaining long-term loyalty. Similarly, the local fashion industry relies on word of mouth marketing, quality control, and personalized customer service to build strong client relationships. A focus on flexibility, tailoring services, and targeting specific groups such as the LGBTQ community enhances their competitive edge. Financial management strategies, including self-financing and borrowing, help navigate challenges while maintaining business stability. Monitoring market trends, competitor activities, and evolving customer needs through service diversification ensures that these businesses remain adaptable and resilient. Both industries face common challenges, such as sourcing reliable suppliers, managing workforce performance, and balancing customer expectations with product quality. Addressing these requires investing in staff development, clear communication, and strategic pricing. Furthermore, coping mechanisms like partnerships, teamwork, family support, and community engagement are vital for building resilience and driving growth. By adopting these strategies and continually adapting to market demands, pre-loved clothing and local fashion industry in Kalibo, Aklan are well-positioned to thrive and remain competitive in an ever-changing environment.

The author would like to express her appreciation to all who provided essential support in this endeavor, particularly the participants, Capiz State University, and Aklan State University, Kalibo.

The author declares no conflict of interest.