The low-cost, low-price business model is well developed; low prices for products in limited amounts leads to high store traffic and fast inventory turnover. The limited assortment, both in variety of SKUs and the quantity per SKU, and quick inventory turnover creates a treasure hunt experience that keeps consumers coming back with an urgency to buy. MINISO embraced this model, carrying only 3,000 SKUs on average per store. The products turn over in 21 days and new products arrive every seven days.
Eighteen years after it was launched, Kiwibank still has less than 5 per cent market share, with the big players making massive profits from ordinary New Zealanders. In its current form, Kiwibank simply isn't working as intended. By perpetuating the profits of the Aussie banks in New Zealand, Kiwibank has achieved exactly the opposite of its stated purpose. It's a great group of people, trapped in a horrible business model.