(Source: https://pltfrm.com.cn)
Introduction
For overseas brands entering China’s premium market, pricing must do more than cover costs—it must communicate value, differentiate tiers, and support long-term brand equity. A well-structured price architecture is critical for aligning product hierarchy with consumer expectations, platform behavior, and regional demand. In China’s fast-moving, digitally saturated ecosystem, price architecture serves as a signal, strategy, and safeguard. This article outlines how global brands can design a premium price architecture that wins attention and builds loyalty in China.
1. Start With a Tiered Framework Anchored by Hero SKUs
Define a three-tier structure based on use case and value delivery
Establish entry (discovery), core (mainstream premium), and prestige (flagship) tiers. Each should have clear functional, visual, and emotional differentiation, tied to specific pricing bands.
Use hero SKUs to anchor brand perception
Your core-tier SKUs should represent your brand promise and pricing logic. These become your default comparison point and carry the weight of storytelling across platforms.
2. Align Price Points With Channel Strategy and Buyer Journey
Position each tier on the appropriate platforms
Offer core and prestige SKUs on Tmall, JD, and Mini Programs. Entry-tier items—like trial sizes or gifting bundles—perform better via livestreams, RED campaigns, or private WeCom activations.
Control visibility and discounting per tier
Avoid frequent discounts on core-tier items to protect brand integrity. Use entry-tier formats for tactical campaigns without compromising perceived value of higher tiers.
3. Adapt Architecture by Region and Consumer Segment
Adjust pricing elasticity across Tier 1, 2, and 3 cities
Buyers in Shanghai or Beijing may gravitate to prestige SKUs, while consumers in emerging cities may require more accessibly priced entry formats. Use pricing variation to maximize regional reach without one-size-fits-all tactics.
Incorporate gifting logic into premium SKUs
In China, premium pricing must often justify its role as a gift. Ensure your top-tier products are packaged and priced to reflect occasion-worthiness—especially during Lunar New Year or Qixi Festival.
4. Build CRM Loops Around Tier Progression
Track customer movement between pricing tiers
Use Mini Program and WeCom data to identify when entry-tier users upgrade or repurchase. Tailor offers and messaging to encourage trade-ups and increase customer lifetime value.
Bundle lower-tier SKUs as step-ups to premium offers
Use price architecture to create laddering pathways—like offering a discovery set followed by full-sized luxury products at elevated pricing.
Case Study: Danish Wellness Brand Optimizes Sales With China-Specific Price Architecture
A Copenhagen-based wellness brand entered China with a single-tier price strategy and struggled to scale. After working with a pricing consultant, they introduced a three-tier architecture: sample sets for RED activation, core SKUs for Mini Program loyalty campaigns, and premium-tier formats for gift-oriented JD buyers. AOV rose by 32%, and repeat customer rates more than doubled in six months.
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!
