Xiaomi’s mantra of success: Flash sales??

 The model used by Xiaomi is not a usual one. It did not spend millions like other big brands to create brand awareness rather it is claimed by Xiaomi that the money saved is spent on providing better quality parts. Xiaomi is known as the, “Apple of the East”. Let’s see an apple to apple comparison of, “Apple of the East” with the original Apple.

Apple IPhone 5S	Xiaomi Mi4
$868 (In China)	$320 (In China)
1.3 GHz dual-core Apple A7 processor	2.5 GHz quad-core Snapdragon 801 processor
1GB of RAM	3GB of RAM
1.2MP front camera & 8MP main camera	8MP front camera & 13MP main camera
4 inch screen	5 inch screen

Now let us talk about the model used by Xiaomi which resulted in the enormous success. The model is Flash sales. Also known as deal of the day, it is a business model in the E-commerce world in which a single product is offered for sale by a website only for a period of 24 to 36 hours. The potential customers are being registered and notified about the deals. 

                                                                      Now the question is how did flash sales model helped Xiaomi?  First of all, the important aspect worth noting is that Xiaomi is not the pioneer in selling through internet. This began in February 2014 with Motorola typing up with Flipkart to sell its Moto-G, Moto-E & Moto-X online. The result of this initiative was the sale of 1 million phones of Motorola. This success encouraged other players like Samsung, Lava & Microsoft to sell through the online route. Xiaomi did not used only the online media alone but also the flash sales model, as already explained above. 

                                                        The flash sales model helped in creating exclusivity for Xiaomi, we all have well studied the relationship between scarcity and value. It was never made available in any stores. This made consumers even more curious about the product. The product no doubt offers great interface but is it the contribution of flash sales model that makes it even more popular, is a thought worth answering.

-- By Mudita | Great Lakes Institute of Management

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Steps towards good governance – Indian Context

Governance has over time become the concept that is very closely related with driving the societal developments. The term good governance has been abused by so many factors that it has become next to impossible to achieve it. The governments are engulfed in conflicts which make them vulnerable to take right decisions which would lead to good governance. Also, it is not self-evident that good governance will lead to alleviation of societal and managerial problems. Certain reforms and innovations may prove to be effective in short term but may not be sufficient in long term. All said and done, good governance depends largely on efforts of the government and its activities. In the context of India, the following concerns must be worked upon:

Holistic approach:

States must ensure that whatever development programs they sponsor, focus on poverty alleviation, improvement of productivity levels and involvement of poor people.

Proper utilization of funds:

Government at state and national level needs to ensure that public expenditure is properly utilized and somebody takes responsibility for that.

Corruption:

Measures need to be taken to lessen corruption at least at the central level. This covers civil services. The government must ensure safety of civil servants and see to it that they work towards the betterment of society rather than take bribes to get things done. This requires safety also as in our country; whistle blowers are either transferred or murdered. This is a deplorable condition and it has been plaguing our country for a long time.

Representation of Women:

For good governance, women form a crucial part. With an increase in the women representatives in democratic institutions, there has been some stability in the policies. Women can bring socially sustainable policies to the table. They can act as leaders, teachers and policy makers. Good governance stems from these.

Electoral process:

We have to ensure that contestants with serious criminal records don’t get to stand for elections as these representatives sometimes incite a mob to indulge in riots which can lead to communal violence and are personally involved in similar incidents also.

The government needs to focus on employment, empowerment of people and also delivery of services which would be the outcome of quality of civil servants in the judicial and administrative system of our country.

By Rahul Sharma | Great Lakes Institute of Management

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