Consumers buy second-hand goods, merchants transfer kiosks

In order to curb expenses, many consumers now use second-hand goods. Meanwhile, due to the slack trade, many small merchants have decided to transfer their kiosks at markets.

Second hand goods on the rise

15,000 dong, 20,000 dong, or 10,000 dong are the prices of the second-hand T-shirts available at the “pavement market” on Xuan Thuy Road in Hanoi. The dresses with higher quality are priced at 50,000-70,000 dong, and no product here is priced at more than 100,000 dong.

The pavement market appeared two months ago. It gathers from 7pm to 10 pm every day, and it is always very bustling, simply because the products available here are very cheap. The traders here said that they do not overcharge, because they know that the buyers are mostly not high income earners.

Notably, the market has attracted many people, including the ones, who previously never thought of wearing used clothes. Workers, vendors and freelancers all have got used to old clothes.

“Sometimes I could sell tens of products to the workers, who work at a nearby construction site. Previously, they did not use second hand clothes, and they only bought goods at the nearby night market,” a saleswoman said on VnExpress.

The woman added that purchasing goods at pavement markets proves to be the best solution for people in the “price storm”. As people have to tighten their belt, they have to cut down spending on clothes. Meanwhile, they can find cheap products only at the pavement markets.

Nguyen Thi Huong, a university student, said that she never thought of wearing second hand clothes, but now she has to. As everything is getting more expensive, from the room rents to water and electricity, therefore, she does not have much money for clothes.

According to Huong, with 200,000 dong, she would only purchase one or two brand new products at normal shops. Meanwhile, with the same sum of money, she would be able to buy 5-7 shirts from the pavement market.

Luyen, who comes from Ha Nam province, a construction worker, also said that she has got used to wearing second hand clothes because of the price increases. Luyen earns 120,000 dong for a working day and 3 million dong for a month. It would be really economical if Luyen can buy 5-6 products with just 1/10 of her income.

Small merchants keep kiosks idle

While sales have been going very slowly in the price storm, many small merchants have been keeping kiosks idle, or trying to transfer the kiosks.

Idle kiosks with no seller can be seen at nearly all markets in HCM City, from An Dong, Ba Chieu to Pham Van Hai, according to Saigon Tiep Thi.

At Ba Chieu Market, for example, there were once 50 kiosks that sold beef, chicken and pork. Meanwhile, there are only 20 kiosks operational. The area reserved for fish and seafood products, once contained nearly 100 merchants, while there are now 25-30 traders only. The same situation is occurring with vegetable kiosks. Phan, a seller, said that only 50 percent of kiosks here are still operating.

Kim Huong, the owner of a ready made clothes kiosk at An Dong Market, said that she has borrowed 200 million dong with the interest rate of 0.5 percent per day (15 percent per month) and she plans to pay both, the principal and interests, 3 percent in total, on May 20. When asked why she did not choose a longer term loan with the lower interest rate of 5 percent per month, she said that she wants to ensure the safety for her business.

“The sale has been going very slowly. I would incur heavy losses if I borrow money for a long term to purchase goods for reselling. I am not sure if retailers will come to take goods. Therefore, I will only borrow money once I can be sure that I can sell goods,” she said. The interest rate of 0.5 percent per day seems to be high, but this is the best solution for small merchants. – Vietnamnet

Tags: vietnam retail industry, Vietnam retail market