(Source: https://pltfrm.com.cn)
When selling on Tmall, pricing is a critical aspect. The Chinese market is unique, and its vast customer base has a wide range of purchasing powers. To establish competitive pricing strategies that appeal to Chinese customers, consider the following:
1. Understand the Market:
- Market Research: Conduct comprehensive research to understand the price range of similar products on Tmall and other Chinese e-commerce platforms.
- Consumer Insights: Identify your target audience and their purchasing behaviors. Understand the value they place on various product features and benefits.
2. Cost Structure:
- Determine Costs: Before setting a price, have a clear understanding of your costs, including production, shipping, taxes, platform fees, and marketing expenses.
- Break-even Analysis: Calculate the minimum price you need to cover costs and desired profit margins.
3. Competitive Pricing:
- Monitor Competitors: Regularly check your competitors’ prices. Price your products competitively, either slightly lower or on par, especially if you’re offering similar value.
- Dynamic Pricing: Implement tools or services that allow for dynamic pricing changes based on market demands.
4. Value-Based Pricing:
- Perceived Value: If your product offers unique features or superior quality, you can set a higher price, emphasizing the added value and differentiators.
- Branding: A strong brand presence can justify higher prices. Invest in marketing and branding to elevate your brand’s perceived value.
5. Psychological Pricing:
- Pricing Tactics: Use tactics such as “¥299 instead of ¥300” as such prices are often perceived as being lower.
- Discounts: Offer periodic discounts or flash sales to attract price-sensitive shoppers.
6. Bundling and Cross-Selling:
- Product Bundles: Offer packages or bundles at a discounted rate, which can increase the perceived value.
- Cross-sell: Recommend complementary products at a special price when purchased together.
7. Loyalty Programs and Incentives:
- Reward Loyal Customers: Offer special pricing or deals for returning customers.
- Early-Bird Discounts: Give discounts to customers who pre-order or buy shortly after product launches.
8. Participate in Tmall Promotions:
- Festival Sales: Engage in popular sales events like the Double 11 (Singles’ Day) where consumers expect deals and discounts.
- Tmall Marketing Tools: Utilize Tmall’s promotional tools and advertising options to highlight deals and offers.
9. Feedback and Adjustments:
- Monitor Sales: Regularly review sales performance. If a product isn’t selling as expected, consider adjusting its price.
- Customer Feedback: Pay attention to customer feedback regarding pricing. If many find it too high, consider running promotions or revisiting your pricing strategy.
By adopting a flexible and researched approach to pricing, you can appeal to a broader segment of Chinese customers on Tmall and boost sales.
PLTFRM is an international brand consulting agency that works with companies such as Red, Tiktok, Tmall, Baidu and other well-known Chinese internet e-commerce platforms. We have been working with Chile Cherries for many years, reaching Chinese consumers in depth through different platforms and realizing that Chile Cherries exports in China account for 97% of the total exports in Asia. Contact us and we will help you find the best China e-commerce platform for you. Search pltfrm for a free consultation！
