Used Clothing Sales in Northern Mexico
22 January 2009 at 08:34 McT 10 comments
The sale of used clothing is one of the top micro-businesses in northern Mexico. The transport of used items across the US/Mexico border keeps some families fed and clothed.
There are those who dabble in the market and may have just a few items. The items might be for sale in front of their house on a clothesline or a blanket on the ground. The individual may have another business going on- a store, food sales or the like. Their items come from a range of sources- maybe their children outgrew it, maybe they need the cash more than the item, maybe they saw a deal and are now looking for some extra profit.
There are women- used clothing sales tend to be women- who have a greater commitment to the industry. They work the markets. Communities throughout Mexico, typically have their market days. Tuesday and Friday mornings could be in one location. Maybe Wednesday evenings are held in another spot. Saturdays they might head to another town altogether. Typically there is a registration fee to be paid to the group running the market of $M100pesos depending on the size o
f your stand. Some markets are more informal with fees paid each time a table is erected. These women have been putting up stands in the same markets for years. In addition to the casual customer, they have a loyal client base who has come to trust their selections.
Some women may purchase items in “pacas” or bulk. They may buy a hundred pounds or so sight unseen for the markets. With the average American tossing 68lbs a year, there are lots of clothes to be had. Pacas come rated by quality that also varies the price. Items that were discontinued or otherwise never worn receive the highest rating. Brand names- like Levi’s or Hilfiger- in good condition also can increase the cost of a paca.
The final stage is the woman who invests in a store front. She has a greater grasp of the small business market. Typically she can more quickly engage in a more advanced discussion about earnings vs operational costs beyond what is in the cash box. Some refuse to buy in paca. They don’t like putting their resources into this grab bag approach of items unseen. They prefer to cross the border and select item by item what they are going to take for sales back home.
Monterrey, Nuevo Leon is a mere two hours from the Texas border. Shopping across the border is so common that there is even a verb “McAlleando” used when somone is off to McAllen, Texas shopping. Although this is typically used in reference to the wealthier families of Monterrey who go to the malls in Texas in the same way that someone from Nashville might go shopping in Atlanta.
Used clothing venders might some may head to the state of Guanajuato, the most enterprising sellers
of used clothing travel to the border markets or cross the border into Texas. The Texas market was particularly lucrative back in the early fall when it was $10pesos to the $1. We are currently closer to $14pesos to the $1- that takes a huge bite out of a small profit margin. Before the currency fluctuation, people claimed they could make double. Buy a shirt used in the US for $2 and sell it for $4. The more experienced sellers talk about the market like a long term investor about his portfolio. There are good times and bad. These are some of the bad times.
Back home, items collected by local charities, but not deemed worthy of local resale are boxed up and either sold directly in lots at stores or even auction style at rates ranging from 37cents to 55cents a pound. Many of the items are taken to market with their original Goodwill or Salvation Army tags. By one estimate 50% of donated clothing is sold back to the same workers who made them.
Typically those who cross the border for clothing sales have documentation. Following a rigorous application process that centers around current employment and a vague assessment of your likelihood of returning to Mexico, a ten year visa can be granted. These folks cross the border to bring items back in for resale. The Mexican government has laws against the import of used clothing for resale. The number of items is vague. The customs agent tries to establish a sufficient number of items for the length of your stay in Mexico. Anything else can be heavily taxed.
The government believes the import of such large quantities of used clothing is hurting local manufacturing. The government hasn’t necessarily acknowledged the importance of cheap clothing to poor families. An quick look at the Sears at Monterrey’s Liverpool Mall is a good example. For the most part the items have approximately the same prices as any Sears back home. Same can be said for the Palacio de Hierro, a high end mall in Latin America’s swankiest zip code, San Pedro. This mall targets family incomes of $250,000 and higher- that’s dollars. A shirt for $1.50 or shoes for $3 can go along way to stretch the meager earnings- items not available at Liverpool or Palacio de Hierro.
Entry filed under: ADMIC, KF6 (Kiva Fellows 6th Class), Mexico. Tags: .
1. Used Clothing Sales in Northern Mexico « Kiva Stories from the Field | ONGOING RESEARCH | 9 December 2011 at 15:36
[...] Used Clothing Sales in Northern Mexico « Kiva Stories from the Field. © 2011All photos except LINKS area are taken by the owner of this website if [...]
2. johnlink | 8 September 2011 at 03:25
DEAR SIR.
MYNAME IS JOHNLINK IAM FROM COTONOU.BENIN REPUBLIC ITRADE ON USED PRODUETS SUCH AS.SHOES .CLOTHS .BELTAND COTTON MATERIALS. IWOULD LIKE TO TRADE WITH YOU. IWILL BE GLAD IF YOU CAN SEND ME YOUR PRICE LIST OF YOUR GOOODS.
BEST REGAURD
MR JOHNLINK
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[...] Used Clothing Sales in Northern Mexico by Megan McTiernan (Mexico) [...]
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6. McT | 1 February 2009 at 20:45
David identifies some excellent reasons to be concerned about clothing excess in the West. There are some crazy stats out there about the quantity of items discarded that have never even been worn, the amount of dollars/euros spent per person on clothes, etc. The economic piece that is on the front page of the papers lately is only the beginning.
Clothing of 100% natural fibers will biodegrade. Clothing of 100% man-made fibers can be recycled appropriately. The major problem is that the majority of our clothing is made with both- hence it can’t be recycled and it won’t biodegrade. Think stretch jeans- they fit so well and will evidently be around forever- literally. We need to be mindful of our own purchasing power. It’s not easy. Sometimes it’s even more expensive.
While we come to terms with the hard choices, the sweatshop industry is alive and well here in Mexico (and worldwide). Long hours, low wages, difficult conditions are just the starting point. Used clothing sales allow Kiva borrowers to set their own schedules, care for their children and enjoy the benefits of working for themselves.
I respect the thinking and agree we absolutely need to act immediately back home. I also believe in the micro-entrepreneurship opportunities that can come from Kiva-funded loans. Used clothing sales is as honorable a method of meeting the needs of a family’s household expenses as any other.
7. tessamuggeridge | 29 January 2009 at 12:24
David, that is a very interesting idea, I have never looked at 2nd hand clothing sales from that point of view but you are absolutely correct.
Developing industry in the nations that Kiva lends to IS much more important than re-using clothing.
Parents always tell their children to clean their plate because of the starving kids in but throw out clothing when it is outgrown without even thinking.
Maybe Kiva should encourage loan-seekers to do business other than selling previously worn clothing… what do you think?
8. David Oglaza | 28 January 2009 at 02:45
2nd hand Clothing sales are a very tricky dilemma for me
2nd hand clothing sales destroy and have destroyed domestic manufacturing industires. When you go to Africa, you see them wearing old football tops and clothes from the West that are 2nd hand. Should they not be wearing clothes that are made in Africa thereby creating much needed jobs. There are no industries apart from tourism in most of Africa. Wouldnt it be great to see clothing factories on the scale of China making African clothes for African people. Imagine!
The problem is…..
As the West has a throw away culture and millions if not billions of surplus items due to changing styles, out growing them etc. what are we going to do with them if dont sell them to developing countires? Is this not the ultimate recycling but at the expense of developing countries clothing industries? We cant landfill them as there is not enough room? We cant recycle them all?
So what to do?
I personally do not lend to Kiva for 2nd hand clothing sales as I believe that jobs and industries in the developing world are more important than our recycling problems.
If the West had a clothes mountain at the end of every yr then maybe people would change there attitudes towards £5/$10 clothes that people discard as easy as food left overs!
Guide Me Green
9. Paul | 24 April 2010 at 05:42
I believe your delimma would be resolved with a little research into the used clothing industry in African countries. There are always pros and cons which are unique to each and every situation, but it seems to me that your comments stem from preconcieved notions rather than factual data.
I myself have been suprised and amazed at how much money there is in recycling and the various uses of materials. Why deprave the poorer classes of that opportunity in favor of industries that often opress the poor?
I believe you will find that in most African countries, far more jobs are involved in the used clothing industry than in cotton farming, clothes manufacturing, and tailoring combined. Also it’s impact on those industries is likely less than you would imagine.
10. Mr John Onyekwere | 11 November 2010 at 08:15
I am Mr John Onyekwere from Nigeria i want to be marketing for you but i we love to come and see with my eye i have visa to Mexico now get back to as soon aspossible i we call you on phone
Mr John