NIO sells luxury electric SUVs in China for about US$60,000 each. NIO is at the intersection of several high growth markets in China. The high-growth markets are electric cars, luxury goods and a segment of very rich people.
NIO provides all owners with an app to connect with other NIO owners. They also provide a luxury club network membership.
NIO delivered 3,318 vehicles to customers in December, 2018. NIO delivered 11,348 delivered ES8 luxury electric SUVs in 2018. The ES8, an upscale battery-electric three-row SUV positioned as a domestic Chinese alternative to Tesla’s Model X.
The wealthy in China account for about one-third of total global luxury spending.
China’s luxury sedan segment grew around 18.8 percent in the first 11 months of 2018 compared with the same period last year. The premium sport-utility segment rose about 3.5 percent between January and November.
Sales of passenger cars priced at more than 300,000 yuan (US$43,470) rose 6.8 percent to 114,000 units in November this year according to China Passenger Car Association data. For the first 11 months, sales of passenger cars exceeding 300,000 yuan jumped 15.1 percent to 1.16 million units.
NIO is selling other luxury products like clothing. NIO has partnered with Hussein Chalayan. Hussein in a leading turkish-born designer who has been called “the Picasso of fashion.” During the height of Shanghai Fashion Week, NIO’s lifestyle brand, NIO Life, partnered with fashion icon Hussein Chalayan to officially launch the limited edition “NIO X Chalayan” collection. NIO also announced the beginning of sales of custom-tailored Chalayan clothing for NIO users.
Growing Wealth in China
China is forecast to become home to 32 of the world’s 40 high net worth cities over the next five years.
China has the second most millionaires in the world. The US has the most millionaires.
SOURCES- CNBC, 60 Minutes, NIO
Written by Christina Wong. Nextbigfuture.com
Product Leader who is passionate about turning “what’s impossible” into innovative realities. Building a new digital SaaS platform to transform the $12+ billion CiscoCustomer Experience business.