(Source: https://pltfrm.com.cn)
Introduction
Entering China’s massive e-commerce ecosystem means adapting not only to new consumer behaviors but also to platform-specific expectations. Successful overseas brands know that localizing their pricing strategies is critical for winning customer trust and market share on Tmall and JD.com.
1. Platform Behavioral Differences
1.1 Tmall’s Affinity for Storytelling Value
- Insight: Chinese shoppers on Tmall expect to pay a premium for products with strong storytelling and brand legacy.
- Action: Price slightly higher while emphasizing brand heritage, certifications, and endorsements.
1.2 JD.com’s Focus on Speed and Utility
- Insight: JD consumers prioritize efficiency and reliability.
- Action: Offer bundle discounts, warranty upgrades, and delivery guarantees with sharper pricing.
2. Seasonal and Festival-Specific Pricing Models
2.1 6.18 and Double 11
- Strategy: Design aggressive price slashing campaigns during China’s massive 6.18 and 11.11 sales events.
- Benefit: Captures significant short-term volume and boosts algorithmic exposure.
2.2 Mid-Autumn and Lunar New Year
- Plan: Develop gift-focused bundles at strategic price points that match seasonal gifting expectations.
- Result: Drives higher AOV (Average Order Value) through culturally relevant offers.
3. Utilizing Loyalty and Referral Incentives
3.1 Member-Exclusive Offers
- Tactic: Provide limited-time price discounts for loyalty program members or app users.
- Impact: Builds stickiness and increases repeat purchase rates.
3.2 Social Sharing Discounts
- Method: Offer incentives for users who share purchases on WeChat or Xiaohongshu.
- Benefit: Enhances virality while optimizing cost per acquisition (CPA).
4. Price Optimization Through Testing
4.1 Multivariate Testing
- Execution: Simultaneously test variations in price points, bundle combinations, and shipping promotions.
- Result: Identifies winning combinations faster and refines promotional spending.
4.2 Smart Retargeting Adjustments
- Plan: Serve personalized discount offers to users who engaged but didn’t convert.
- Impact: Salvages lost leads without mass price reductions.
Case Study: An Australian Beauty Brand’s Tailored Launch Strategy
An Australian skincare company launching on Tmall priced their hero products 20% higher, paired with luxury packaging and influencer endorsements. On JD, they promoted efficiency with bundled discounts and free returns. As a result, the brand saw a 30% market share growth on Tmall among women aged 25-40, and a 44% YoY sales increase on JD.
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!
