(Source: https://pltfrm.com.cn)
Introduction
Price isn’t just a number in China’s premium market—it’s a cue for quality, authenticity, and social distinction. For global brands aiming to succeed in China, aligning premium brand positioning with a multi-tiered pricing strategy is crucial. This approach enables brands to capture different consumer segments without diluting their prestige. In this article, we explore how to build price tiers that support brand storytelling, enhance perceived value, and protect long-term positioning.
1. Establish Price Tiers Based on Functional and Emotional Value
Differentiate tiers by usage occasion, material quality, or rarity
In premium segments, the perception of value must grow with price. Offer higher-tier SKUs with unique attributes—artisan touches, limited runs, or heritage detailing—to justify the leap in pricing.
Use storytelling to build emotional connection by tier
Entry-tier SKUs can emphasize lifestyle or accessibility, while upper-tier SKUs should highlight exclusivity, legacy, and craftsmanship. Tailor the narrative to match the price point.
2. Align Each Tier With Distinct Distribution Channels
Flagship platforms for prestige items, Mini Programs for mid-tier
High-end SKUs perform best on brand-owned stores where control over storytelling is strongest. Use private channels like WeCom and Mini Programs to test or sell mid-tier products with limited exposure.
Leverage livestreams and private groups for targeted tier sales
Livestreams can introduce exclusive capsule collections at mid-tier pricing, while high-touch private WeCom groups can unveil top-tier offerings to HNWIs with tailored consultation.
3. Reinforce Tier Strategy Through Content and Visual Hierarchy
Prioritize premium tiers visually in ads and digital assets
Even if mid-tier SKUs drive volume, premium-tier items should take center stage in your visual identity. Their presence elevates the brand image across all tiers.
Educate through Mini Program journeys or WeChat campaigns
Guide users through a brand narrative that explains the differences between collections. Pricing is more easily accepted when users understand the value behind the tier structure.
4. Balance Accessibility With Brand Protection
Avoid overexposure of entry-level items in premium spaces
If mid-tier items dominate Tmall or RED exposure, it may erode exclusivity. Adjust visibility to ensure premium offerings remain aspirational and authoritative.
Use pricing tiers to create consumer aspiration pathways
Well-aligned tiers encourage trade-up behavior. First-time buyers start with an entry SKU, but with effective CRM targeting, they progress toward core or prestige tiers over time.
Case Study: Paris-Based Accessories Brand Elevates Image With Tiered Price Strategy
A French leather accessories brand entered China with three tiers: Classic (entry), Heritage (core), and Signature (premium). Classic SKUs launched via RED and Mini Program, while Heritage and Signature were reserved for flagship store drops and WeCom appointments. The brand saw 3X growth in average order value among repeat buyers and improved brand perception on Xiaohongshu, where Signature items were consistently shared by fashion-forward influencers.
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!
