1. Low procurement cost: Xinhuixing Bank may obtain lower procurement cost through more effective procurement channels or better supply chain management. This allows them to make more favorable pricing on the price of gold to attract more consumers.
2. Economies of scale: Xinhuijindian may be a large gold jewelry retailer. Because of its large scale, they can achieve better cost control in the production and sales process. Through mass sales, they can get lower average cost and make concessions on price.
3. Small profits but quick turnover: Xinhui Bank may adopt the strategy of small profits but quick turnover, that is, to obtain higher profits by selling more products. This strategy can help them gain more market share and provide consumers with lower prices.
4. Brand effect: Xinhuixing may be a well-known brand with a certain brand effect. This makes consumers more willing to buy their products because they believe in the quality and credibility of the brand. Brand effect can give them a certain advantage in pricing.
In a word, the low gold price of Xinhui Gold Bank may be due to the comprehensive effect of their low procurement cost, economies of scale, small profits but quick turnover strategy and brand effect.