(Source: https://pltfrm.com.cn)
Introduction
A single price point can’t meet the expectations of China’s diverse digital buyers. For overseas brands launching in this highly competitive ecommerce space, a flexible tiered pricing structure helps attract new users, convert value seekers, and retain premium customers. This article outlines how to develop and evolve pricing tiers for sustained success in China.
- Set Tiered Pricing Foundations from Day One
1.1 Structure Based on Buyer Journey
- Acquisition Tier: Offer competitively priced entry SKUs that appeal to cautious first-time shoppers.
- Loyalty Tier: Design premium SKUs for repeat buyers, backed by exclusive perks and superior packaging.
1.2 Benchmark Against Local and Global Standards
- Local Comparison: Evaluate competitor pricing across marketplaces and content platforms.
- Global Alignment: Ensure mid and high tiers match international positioning to maintain perceived value.
- Align Tiered Pricing with Marketplace Positioning
2.1 Marketplace-Led Tier Customization
- Tmall for Tiered Flagships: Create multi-option product pages with clear tier breakdowns.
- JD for Functional Pricing: Emphasize value and volume bundles at the mid-level to suit JD’s pragmatic audience.
2.2 Partner with Influencers for Tier Promotion
- Livestream Demonstration: Use influencers to walk through each tier, building value understanding.
- Tier-Based Incentives: Provide different discount codes for entry, core, and premium product tiers.
- Use Loyalty Mechanisms to Guide Tier Migration
3.1 Tier-Based Benefits
- CRM Access Levels: Assign membership benefits based on historical purchase tier.
- Tier-Linked Gifts: Offer milestone rewards that incentivize buyers to ascend to the next level.
3.2 Subscription as a Pricing Strategy
- Tiered Subscriptions: Offer monthly plans with escalating value in product size, personalization, or delivery perks.
- Churn Management: Use exit surveys from premium tiers to adjust pricing or perks.
- Monitor and Adapt Using Performance Signals
4.1 Conversion Insights by Tier
- Funnel Review: Evaluate how each pricing tier performs at awareness, consideration, and conversion stages.
- Cart Drop Analysis: Identify which tier SKUs suffer most from price friction and adjust messaging or structure.
4.2 Adapt Based on Review and Sales Velocity
- High-Velocity Tier Upsells: Increase price gradually on popular mid-tier SKUs to test value ceiling.
- Low-Tier Feedback: Refine messaging or upgrade options for low performers to improve value perception.
Case Study: Korean Beauty Brand Maximizes Repeat Sales via Tier Subscription A Korean cosmetics brand entered the China market with three pricing tiers. They added a mid-tier subscription for their popular serum line, offering monthly delivery and free travel-sized gifts. The tier became the brand’s top performer in just two quarters, driving 72% of monthly revenue and reducing churn by 45%.
Conclusion
Tiered pricing isn’t just a launch tool—it’s a long-term strategy that helps brands scale efficiently in China. With smart marketplace alignment, user journey mapping, and feedback-based evolution, overseas brands can build pricing systems that convert and retain across segments.
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!
