topic research on shopping habits and behaviors of people from 25 to 34 years old in ho chi minh city who choose thrift clothes to establish a high fashion thrift store

Purpose of the Proposed Research Project The purpose of this project is to Research on shopping habits and behaviors of people from 25 to 34 years old in Ho Chi Minh City who choose thri

UEH UNIVERSITY

COLLEGE OF BUSINESS

SCHOOL OF INTERNATIONAL BUSINESS — MARKETING

UEH

UNIVERSITY

RESEARCH PROPOSAL

MARKETING RESEARCH

Topic: Research on shopping habits and behaviors of people from

25 to 34 years old in Ho Chi Minh City who choose thrift clothes to

establish a high-fashion thrift store

Subject code: 22D1MARS50310102

Lecturer: Nguyen Quoc Hung

Student Name & ID:

Phung Thi Minh Trang - 31201023921

V6 Ngoc Tuong My - 31201020562

Neuyén Trinh Vinh Tin - 31201021037

Tran Duy Thai - 31201020902

Nguyễn Cam Thy — 31201022130

Lé Tuong Vy — 31201021187

Table of Contents

T Imtroduction oo cece 1

II Ji 0i 80/00 1

2 Overview of Luxury Thrift Store Market 20.0 cee eecceseeeeeceeeeeeeeeceseeeaeseeeeeeeeeeenees 2

3 Competitive Landscape 8n 2

Ni 0 7 3

IL Purpose of the Proposed Research PTOJ€C .- - - + Ăn kh nHnHvnHnhnrhrt 3

IH Type of Study (exploratory, des€rIpfIVe OF CaUSaÌ) .- s5 Ăn nhưng 4

IV Definition of Target Populatlon and Sample Š1Z€ - 5 5 es* s xrenrere 4

V Sample Design and Data Collection Methods - - 5 + Ă Se xnxx nh net 5

1 Sample Design 5

VN 0v 0 0 nh ố 5

VI Specific Research Instruments (In depth-interview, focus group, data collection form,

o0 ~- AOA 6

1 Qualitative Analysis — In-depth Int€TVICWS ch HH HH TH HH nh nhe 6

2 Quantitative Analysis — Online SUTV€Y - - cà nh HH HH HH He 6

VIL Potential Managerial Benefits of the Proposed Study .- se sen se 7

II iu nh hố ẻ 7

/Nxro cac ce 7

MIiNsviv iiêu, non di 6a) 8

IX Profile of the Research Company CapabiÏItI€S - - «<< se net nh net 8

X Optional Dummy Tables of the ProJected ResuÏfS - - «nen tre 8

XI ReÍ€r€enCeS - - - - + 2 + 2+ 2000100111111 KH HT ung ng 14

1 Introduction

1 Vietnam Thrift Store Market

- The model of a thrift store was infiltrated into Viet Nam between the years 2000-

2010 These stores operate in the form of receiving products from sellers, including

clothes, jewelry, accessories, cosmetics from branded products to popular goods

After that, the store will arrange and display them for sale, and some chains even

increase the livestream of products on fanpage to attract customers to buy Stores

will charge a percentage of total sales After the consignment period, shippers can

come to receive their products or donate if they no longer need them

- Thrifting is becoming increasingly popular among Gen Zs worldwide In addition,

thrifting is a useful solution to the inadequacies that the industry has placed on the

environment throughout the years

- According to a report by Thredup (in conjunction with market research company

GlobalData) shows that the secondhand market will grow more and more In

Vietnam, the trend of thrift shopping is happening and is especially bustling in early

2022

- The number of people selling and buying second-hand items has increased gradually

year by year In 2020, figures show that there were 33 million users buying

secondhand clothes for the first time And according to the survey, 76% of these

people plan to continue buying second-hand within the next 5 years The report from

Thredup also shows that the value of the secondhand fashion market will continue

to increase to $77 billion by 2025

- The reason why the demand for thrifting recently is because many customers have

the need to clean up their wardrobe after a year with many changes Besides, fashion

shop owners also need to clear the inventory of the past year Most importantly,

perhaps due to the attraction of "cheap" prices with secondhand clothes

2 Overview of Luxury Thrift Store Market

In the 21st century, branded clothes raise prices higher and higher To own a branded

item, sometimes buying it directly at stores is out of reach for many people As a

result, people choose to buy high-end secondhand goods

Luxury fashion, due to its high quality, is difficult to damage when compared to

popular goods second-hand handbags and shoes are sometimes sold in almost new

condition Therefore, it is wise to buy your first branded item in the secondhand

market, if you're willing to put in the time and effort of searching This shopping

habit helps to reduce the need to produce new items, and at the same time prevents

the disposal of good quality second-hand items

Unlike a number of luxury fashion accessories belonging to famous global brands

such as Hermés, Gucci, Chanel that have investment value in the resale market,

liquidated products in domestic markets belong to local brands or international fast

fashion brands such as Zara, H&M, Charles & Keith, Pedro often have prices

lower than the original price, some half or a third cheaper depending on the

condition of use Some items here even have tags, brand new The price is largely

determined by the seller

3 Competitive Landscape

3.1 Indirect Competitors

They are luxury brands that will be competitors of luxury thrift stores such as Hermés,

Gucci, Chanel, Zara, H&M, High-end fashion stores do not mass-produce, raise product

prices high, and cancel products in stock They fear that the mass availability of

secondhand products, at lower prices, will reduce their brand value In addition, young

people still have hesitation in choosing second-hand clothes

3.2 Direct Competitors

® Give Away

@ The Next

e The Labb

e Dita Preloved

However, Luxury Thrift store competitors in Viet Nam are not numerous so our store will

easily get the top-of-mind in Vietnamese consumers

4 Business problems

There are also some famous thrift stores in Ho Chi Minh City, so the competition

and elimination will be very high To survive and develop, we must build our own

reputation and brand, different from the rest to be able to attract customers

On the other hand, fashion trends are always updated, so clothes quickly become

out of fashion, if we do not keep up with the tastes of customers, we will be left

behind

Furthermore, the quality of the goods sent is not guaranteed This can also be

considered as the shortcomings of the input management stage, when the goods are

not checked and carefully reviewed, which leads to the worst case scenario of not

being able to sell the goods but also losing the cost of preservation And of course,

with the mentality of the seller as well as the consignor, they never want their goods

to be in stock or not be sold

II Purpose of the Proposed Research Project

The purpose of this project is to Research on shopping habits and behaviors of people from

25 to 34 years old in Ho Chi Minh City who choose thrift clothes to establish a high-fashion

thrift store

To shed light on the theories of consumer behavior towards thrift clothes from

luxury brands

To contribute to the development of a scale system and a research model that affects

consumers’ behavior of buying thrift clothes in Ho Chi Minh City

3

- To provide a multifunctional overview of the habit of buying thrift clothes

- To help administrators know the knowledge level of Ho Chi Minh City people about

this habit of buying thrift clothes, understand the psychology that shapes the

behavior of users of this shopping habit in Ho Chi Minh City

- To help “Luxurious” thrift store administrators establish a luxury brand thrift store

to build, form policies, supplement sales plans, marketing plans or make business

strategies that meet their needs and usage behavior of consumers in Ho Chi Minh

City

- To form core needs from consumers, capture the increasing satisfaction of

consumers to form strategies to improve, promote development, and improve the

quality of the “Luxurious” thrift store

Ill Type of Study (exploratory, descriptive or causal)

We use Descriptive study to gather data about target customers of their shopping habits

and behaviour about thrifting This data aims to know the extent to which different

conditions can be obtained among these responses

As aresult, we want to determine the shopping habits and behaviors of Ho Chi Minh City’s

people from 24 to 35 years old who have a hobby of going shopping, especially at thrift

stores and getting attention to luxury brands’ products By this way, we can understand the

wants and needs of our customers

IV Definition of Target Population and Sample Size

- Our target customers are:

e Range Age: 24-35 years old

e Allowance: From 7.500.000 - Under 15.000.000 dong

e Having a hobby of shopping

e Being fashionable and having fashion sense

- Our target customers need:

® New experlence in shopping

® A place where they can find second hand fashion products from luxury

brands

e A solution for less thinking, less money, time-saving and healthier lifestyle

V Sample Design and Data Collection Methods

1 Sample Design

In order to fact-check the data, a sample size of 366 people was gathered Convenience

sampling procedure was used, sharing questionnaires to groups and asking strangers,

family, and friends for information on the research

e Development of the survey questions and wording

e Description of population of interest

e Explanation of target population appropriateness

e Determination of sample size needed

e Sampling procedures (random or convenience)

e Determination of the sample population

e Method of survey distribution

2 Data Collection Methods

- Qualitative method:

This method was used to gain insight into what the average consumers, who choose thrift

clothes to establish a high-fashion thrift store, wanted and needed through in-depth

interview methods, conducted by focus group discussion technique, with the participation

of the author group and 5 people having the knowledge and habit of buying thrift clothes

(n=5) using a pre-set questionnaire The objective of the preliminary study is to discover

and correct the variables in the proposed model as a premise for a quantitative survey in

the official study

- Quantitative research:

Using direct interview techniques through survey questionnaires - Google Form The

collected information is used to evaluate the reliability (convergence and discriminant

value) of the scales, the factors affecting the intention to choose to order online, test the

research model and the hypotheses Research theory, testing whether or not there is a

difference in the level of impact of factors affecting the intention to start a business through

the processing software SPSS 22.0

VI Specific Research Instruments (In depth-interview, focus group, data collection

form, scales)

1 Qualitative Analysis — In-depth interviews

The 5 interviews were conducted face-to-face and lasted 15-30 minutes Demographic data

(gender, age, location, marital status and monthly income), Awareness, Fashion interest,

Inspiration, Emotional, Social involvement, Informativeness were all separated into seven

sections in the script

2 Quantitative Analysis — Online survey

Quantitative research is carried out in stages:

- Purposive sampling method: The survey sample is carried out by purposive random

sampling method with the number of over 300 people in Ho Chi Minh City

- Data collection methods:

e Secondary documents are collected from many sources, using a variety of

media such as journals, books, previous studies of other authors and using

Internet tools to support faster and more effective in the process of finding

relevant information

e Primary information is collected from the design of questionnaires and

distribution of survey questionnaires to research subjects

e The survey was conducted by: designing an online questionnaire on Google

Form and sending it to the respondents

Data processing methods: linear regression and descriptive statistics

Information processing tools: use a variety of tools to analyze data through SPSS

25.0 1.6 software

VII Potential Managerial Benefits of the Proposed Study

1 Theoretical values

The study sheds light on the theories of consumer behavior towards thrift clothes

from luxury brands

The research results contribute to the development of a scale system and a research

model that affects consumers’ behavior of buying thrift clothes in Ho Chi Minh City

Provides a multifunctional overview of the habit of buying thrift clothes

2 Practical values

The results of the report “Research on shopping habits and behaviors of people from

25 to 34 years old in Ho Chi Minh City who choose thrift clothes to establish a high-

fashion thrift store” will help administrators know the knowledge level of Ho Chi

Minh City people about this habit of buying thrift clothes, understand the

psychology that shapes the behavior of users of this shopping habit in Ho Chi Minh

City

As a source of reference information to help “Luxurious” thrift store administrators

establish a luxury brand thrift store to build, form policies, supplement sales plans,

marketing plans or make business strategies that meet their needs and usage

behavior of consumers in Ho Chi Minh City

Get an overview of the behavior of buying thrift clothes, satisfaction or

responsiveness level of consumers in Ho Chi Minh City at the time of conducting

the research Thereby forming core needs from consumers, capturing the increasing

satisfaction of consumers to form strategies to improve, promote development, and

improve the quality of the “Luxurious” thrift store

VIII Proposed Cost for the Total Project

This marketing research will last for 2 weeks, starting from the time of accepting the

proposal The total fee will be 50.000 VND including printing the questionnaire for in-

depth interview and evaluating the data collected

IX Profile of the Research Company Capabilities

This section is to describe the researchers and their qualifications as well as a general

overview of the company However, we are assumed as a group working on a project

to practice market research so this section is left blank intentionally

X Optional Dummy Tables of the Projected Results

Number Questions Answers

- Male

1 What is your gender? - Female

- Other

- 24-27

2 How old are you? - 28-29

- 30-32

DEMOGRAPHIC - Student

- Bachelor's degree

3 Your current academic level?

- Master

- Doctor

- Single

- Married

4 Your current marital status?

- Divorce/Separated

- Widow