(Source: https://pltfrm.com.cn)
Introduction
China’s luxury buyers expect more than a premium product—they expect a pricing model that supports their identity and signals quality. For overseas brands, price is a critical component of positioning, especially in an environment where consumers are increasingly knowledgeable and brand-savvy. This article outlines four price strategy pillars to help luxury brands succeed in China.
- Define and Maintain Pricing Integrity
1.1 Transparent Premium Positioning
- Price Parity with Purpose: Avoid unnecessary discounts; maintain alignment with global pricing unless offering a locally exclusive product.
- Prestige Pricing: Use high prices as a marker of exclusivity, not just cost.
1.2 Controlled Discounting Channels
- Event-Only Sales: Restrict markdowns to specific luxury campaigns like Tmall Super Brand Day.
- Private Discounts: Provide access-based discounts through VIP programs to protect brand equity.
- Localize Luxury Through Psychological Pricing
2.1 Aspirational Framing
- Anchor Premium Products: Highlight your most expensive items to elevate perception of the full collection.
- Justify Pricing: Tie prices to craftsmanship, rarity, or country of origin.
2.2 Number-Coded Psychology
- Positive Price Points: Use culturally significant numbers (¥888, ¥1688) that align with luck and prosperity.
- Tiered Packaging: Offer different priced tiers with clearly distinct experiences to match expectations.
- Craft Experiences That Warrant the Premium
3.1 Personalized Luxury Journey
- VIP Access: Offer exclusive showroom appointments or private Douyin live sessions.
- Relationship Pricing: Personalize follow-up offers for top clients using CRM data.
3.2 Product Prestige Support
- Story-Rich Branding: Use WeChat content to explain why your pricing reflects your brand’s legacy.
- Service Add-Ons: Provide luxury services that validate higher price tags, from free international shipping to white-glove delivery.
- Monitor High-End Consumer Trends
4.1 Consumption Evolution Tracking
- Age Shift: Millennials and Gen Z are redefining luxury priorities—prioritize social and experiential value.
- Market Signals: Use Xiaohongshu trends and Tmall data to anticipate shifts in pricing sensitivity.
4.2 Dynamic Pricing Readiness
- Premium Launches: Prepare to raise prices based on successful product adoption.
- Community Feedback: Let social commentary inform minor recalibrations.
Case Study: Swiss Watchmaker Protects Brand Value with Service-First Pricing A heritage watchmaker entered the Chinese ecommerce space with strict price discipline. All SKUs matched international rates, but bundled concierge support and lifetime battery service. Despite higher prices, the brand saw a 3.8x increase in referral-based purchases after just six months.
Conclusion
Luxury brands entering China must design pricing systems that resonate emotionally and culturally while preserving international consistency. When executed properly, premium pricing builds loyalty, aspiration, and long-term brand equity.
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!
