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How Nio Is Impressing EV Buyers With Its Lifestyle Ecosystem While Making Extra Cash

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How Nio Is Impressing EV Buyers With Its Lifestyle Ecosystem While Making Extra Cash

Chinese electric vehicle maker Nio Inc. (NYSE: NIO) is impressing EV buyers in China with its Nio Life lifestyle app.

What Happened: According to a report by Reuters, Nio’s user relations executive Calvin Shen said the company has designed its Nio Life App in such a way as to entice customers to interact more with the company. The Nio Life app was launched in 2018.

Shen said that as buying cars is a less frequent activity compared to taking a flight or shopping at a supermarket, Nio is creating more everyday activities in the app to keep in touch with customers.

The lifestyle app — which converges social media, e-commerce and daily commute — now has around 150,000 daily users. In addition, Nio operates its own digital currency with tradeable credits that customers can gain from buying a car, attending events or even posting their stories on the Nio app.

Nio said in a blog post in February that since the app’s launch in 2018, the company has built a strong network with over 500 designers around the world, developed 813 new products, and delivered over 2.8 million NIO Life merchandise to its users.

See Also: Nio Clarifies It Has Nothing To Do With Customer Protest Against Tesla At Shanghai Auto Show

Why It Matters: The Nio Live app has enabled Nio to tap into brand loyalty. Customers can buy cereals from the Nio Life online store, drink Nio wine, wear Nio clothes, and chat with other Nio owners on the app.

Aerospace executive Lu Hao who bought a Nio ES8 SUV told Reuters that buying "Nio stuff" had been a part of his daily life, adding that he had spent over RMB 220,000 (USD 34,000) on the EV maker's lifestyle products over the past two years.

While Nio has a market capitalization of $67 billion, the company’s sales trail that of market leader Tesla Inc. (NASDAQ: TSLA) in the Chinese EV market, which is the world’s largest.

Nio's deliveries in the recent first quarter were roughly 11% of what Tesla sold in the quarter. The company currently sells three SUV models in China, namely the ES6, ES8 and EC6.

Nio is relying on service offerings to make an impact on customers in China. The company unveiled the interior of the ET7, its fourth mass-produced model, at the Shanghai auto show last week.

Price Action: Nio shares closed 3.3% lower on Wednesday at $41.21.

See also: How to Buy Nio Stock

Photo: Courtesy of Nio

 

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