How Luxury Brands Use Anchor Pricing to Make ¥88,000 Handbags Feel Like a Bargain in China

(Source: https://pltfrm.com.cn)

Introduction
In China’s high-end market, the most expensive product on the page often isn’t meant to sell — it exists to make everything else look reasonably priced. Top overseas luxury brands deliberately place ultra-premium “anchor” items at ¥80,000–¥300,000+ so that a ¥28,000 bag suddenly feels accessible to upper-middle-class consumers. Master this psychology and your average transaction value can rise 35–60 % almost overnight.

  1. Building the Perfect Price Ladder
  2. 1.1 The Extreme Anchor Item Create one halo product priced 3–5× higher than your core offering (e.g., ¥288,000 crocodile leather limited edition when your main line is ¥48,000–¥78,000). This item rarely sells more than 5–10 units but resets consumer price perception for the entire collection. Display it prominently on category pages and in flagship store windows.

1.2 The “Just Below” Sweet Spot Position your best-selling model at 23–28 % of the anchor price. Chinese luxury buyers consistently choose items that feel “reasonable” compared to the extreme anchor while still signaling status.

  1. Visual & Platform Presentation Tactics
  2. 2.1 Hero Image Dominance On Tmall Luxury Pavilion, JD Luxury, and Dewu, always show the anchor product as the first image in the carousel with the highest resolution. The brain registers this price first, making subsequent options feel discounted even at full price.

2.2 Side-by-Side Comparison Tables Use built-in platform comparison tools to display anchor vs mid-tier vs entry-luxury models. Highlight that the mid-tier has “92 % of the craftsmanship” for only 27 % of the price.

  1. In-Store & Live-Streaming Reinforcement
    3.1 Flagship Store Layout Place the anchor piece on a dedicated pedestal at the entrance with dramatic lighting. Sales associates are trained to say “Many clients start with the iconic piece, but most fall in love with this slightly more practical version at ¥68,000.”

3.2 Live-Streaming Anchor Strategy During Douyin or Tmall live sessions, hosts always introduce the extreme anchor first (“This ¥198,000 version is already sold out…”), then immediately pivot to the core model with “but we prepared this almost-identical edition at ¥49,800 — link exploding!”

  1. Seasonal Anchor Refresh
    4.1 Limited Capsule Collections Release 1–2 new extreme anchor pieces during Chinese New Year and 818 to re-calibrate perception twice a year.

Case Study – Italian Leather Goods Brand Autumn 2024

An Italian heritage brand introduced a ¥268,000 Himalayan crocodile Kelly-style bag limited to 8 pieces in China. Core saffiano leather bags remained at ¥46,000–¥68,000. Result: average transaction value on Tmall Luxury Pavilion jumped 58 % quarter-on-quarter while the crocodile bag sold all 8 units within 48 hours.

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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