(Source: https://pltfrm.com.cn)
Introduction
Many international brands entering China misjudge how to structure pricing. Too simple, and they leave money on the table. Too complex, and they confuse the consumer. With the help of pricing structure advisors, brands can create scalable, localized pricing that drives sales and builds brand equity. This article outlines the most common mistakes and how consultants help avoid them.
1. Over-Reliance on Global MSRP Structures
Global Parity Doesn’t Work in China
China’s costs, consumer psychology, and platform expectations are different. Consultants help brands rework pricing locally instead of importing global MSRP blindly.
Currency Fluctuation Risk
Advisors factor in RMB volatility and help companies set pricing that protects margins even as currency shifts affect landed cost.
2. Inconsistent Platform Pricing
Tmall vs. JD vs. Offline Gaps
If prices vary too much between platforms or retail outlets, consumers lose trust. Consultants enforce synchronized pricing frameworks while managing promo allowances per platform.
Lack of Control on Third-Party Channels
Consultants audit reseller pricing and provide governance tools or distributor agreements to prevent grey market undercutting.
3. Missing Entry-Level Price Points
Failing to Offer “Test and Try” Options
Chinese consumers often want trial sizes or giftable formats. Consultants recommend entry-tier SKUs to reduce friction and increase first-time conversion.
Ignoring Young Demographics
Gen Z buyers may love the brand but not afford the flagship item. Smart price ladders open the door to lifetime value.
4. Skipping Post-Promo Recalibration
Permanent Discount Syndrome
After major events like Double 11, brands sometimes forget to reset pricing. Consultants build “rebound pricing” strategies that restore value perception while protecting retention.
Promo Fatigue Avoidance
Advisors also limit discount depth over time and introduce smart value levers—like early access, exclusive SKUs, and service add-ons.
Case Study: U.K. Footwear Brand Rebuilds China Price Structure
A global fashion footwear brand priced its China products in line with its U.S. store. Over time, it struggled with undercutting, low conversion, and unclear positioning. A pricing advisor introduced a localized pricing ladder, built bundles tailored for festivals, and realigned channel strategies with premium partners. Revenue rose 61% across China platforms, and brand favorability improved in RED and Weibo sentiment reports.
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!
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