(Source: https://pltfrm.com.cn)
Introduction
For overseas brands entering China, success in the premium segment hinges on more than product quality—it requires aligning your price architecture with the way Chinese consumers interpret value and brand status. In a market where tiered pricing is not only common but expected, premium positioning must be reinforced through thoughtful segmentation, channel strategy, and messaging. This article explores how global brands can structure price tiers that reinforce their premium image while capturing broader market potential.
1. Use Tiered Pricing to Reflect Brand Hierarchy and Exclusivity
Segment your product portfolio by lifestyle relevance and perceived value
Chinese consumers intuitively associate higher prices with higher social value. Create tiered collections—entry, core, and prestige lines—each with clear differentiation in materials, packaging, or exclusivity.
Anchor top-tier SKUs to reinforce brand prestige
Even if volume comes from mid-tier products, your highest-tier offerings shape brand perception. Limited editions or seasonal exclusives should be priced boldly to maintain brand elevation.
2. Match Pricing Tiers to Channel Strategy
Use flagship stores for full-price premium lines
In Tier 1 cities, brand-owned Tmall or JD flagships should focus on premium SKUs with full retail pricing. This aligns with user expectations of authenticity and brand control.
Introduce accessible pricing through private traffic or WeCom
Offer mid-tier SKUs or introductory items via Mini Programs or WeCom advisors. These private channels allow personalized pricing strategies without eroding the brand’s public image.
3. Localize Value Narratives by Tier
Translate global brand values into China-relevant language
Use language that resonates with Chinese aspirational ideals—terms like “refined,” “limited,” or “custom-crafted” speak louder than “affordable luxury.” Tailor messaging by price tier while keeping the brand ethos intact.
Educate consumers on what makes higher-priced items different
Use WeChat articles, Mini Program banners, or livestreams to explain the materials, sourcing, or design philosophy behind premium lines. Transparency boosts willingness to pay.
4. Monitor Tier Performance to Maintain Brand Integrity
Track how each tier performs across customer segments
Use CRM data to identify whether HNWIs are opting for entry-level SKUs or if aspirational buyers are stretching into core tiers. Misalignment here can dilute brand positioning and pricing integrity.
Adjust offerings if mid-tier products overshadow brand halo
If promotional SKUs begin to dominate, recalibrate tier availability, visual prioritization, or even pricing to restore balance and protect perceived value.
Case Study: Scandinavian Fashion Brand Repositions With Tiered Pricing Strategy
A Scandinavian apparel brand entering China segmented its collection into three tiers: Signature, Essential, and Atelier. Signature pieces launched on Tmall at full price with limited stock. Essentials were distributed via Mini Program channels with styling advice. Atelier, the highest tier, was offered only via appointment-based livestreams. This structure preserved brand prestige while maximizing accessibility. Within 6 months, the brand grew its CRM base by 28% while maintaining premium margins.
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!
