A recent Facebook post has stirred a heated debate among consumers and entrepreneurs alike. A bride-to-be shared her disappointment after discovering that the wedding dress she was quoted R6,000 for was available on Shein—a popular online fashion retailer—for just R900. Feeling deceived, she labeled the practice as "crookery." This incident raises important questions about business ethics, pricing strategies, and consumer perceptions in the fashion industry.

The Customer's Perspective

From the customer's viewpoint, the situation feels like a betrayal. She believed she was engaging with a supplier who had years of experience and possibly even crafted the dresses themselves. The significant price disparity between the supplier's quote and Shein's listing led her to feel overcharged and misled. In an age where information is readily accessible, discovering such a markup can damage trust and make customers wary of small businesses.

The Entrepreneur's Angle

On the other side of the coin, entrepreneurs see opportunities where others might not. The supplier identified a demand for a particular style of wedding dress and provided it at a price they deemed fair within the local market. Several factors justify the higher price:

• Import Costs: Purchasing items from international retailers like Shein often involves additional costs such as shipping fees, customs duties, and taxes. The entrepreneur absorbs these expenses to provide a hassle-free experience for the customer.

• Marketing and Overheads: Running a business entails costs beyond the product itself. Marketing efforts, website maintenance, showroom rentals, and staff salaries contribute to the final price of the product.

• Value-Added Services: The supplier may offer personalised services such as fittings, alterations, and after-sales support, enhancing the overall value provided to the customer.

Industry Insights

The fashion industry, particularly the bridal sector, is notorious for markups. Traditional retailers often have margins ranging from 100% to 300% on clothing items. This practice isn't exclusive to fashion; it's a common business model across various industries where retailers purchase goods at a wholesale price and sell them at a retail price that covers their costs and includes a profit margin.

In many cases, local businesses source products from manufacturers in Asia due to lower production costs. They then import these goods and sell them at prices competitive within their local markets. This model supports local economies by providing jobs and contributing to the tax base.

Is It Crookery or Business?

Labeling the supplier's actions as "crookery" may be an oversimplification. While the customer feels overcharged, the supplier operates within a business model that accounts for various costs and risks. Transparency is crucial, however. Misleading customers to believe that products are handcrafted locally when they are imported can harm a business's reputation.

Consumers today are more informed and have higher expectations for honesty and value. Businesses that prioritise transparency and customer education may find greater long-term success.

The Last Words

The wedding dress incident highlights the complexities of modern retail, where global supply chains and local business practices intersect. For consumers, it's a reminder to conduct thorough research and communicate openly with suppliers. For entrepreneurs, it underscores the importance of transparency and ethical marketing.

In the end, the situation is less about crookery and more about understanding the nuances of business operations. Both parties can learn valuable lessons—customers about the true cost of convenience and added services, and businesses about the importance of building trust through honest practices.