(Source: https://pltfrm.com.cn)
Introduction
For new brands entering China, building brand awareness quickly is essential. Penetration pricing, if handled strategically, can spark consumer interest and accelerate word-of-mouth. Here’s how consultants shape effective, sustainable penetration pricing tactics for successful China launches.
1. First Purchase Incentives
1.1 Welcome Discount Programs
Offering attractive first-purchase discounts to new users helps drive initial conversion and build CRM databases.
1.2 Referral Incentive Models
Consultants design refer-a-friend programs linked to introductory pricing, amplifying brand reach without relying solely on ad spend.
2. Creating Urgency Through Limited Time Offers
2.1 Countdown Campaigns
Time-bound countdowns (e.g., “Only 48 Hours Left”) linked to penetration pricing maximize conversion rates during launch.
2.2 Festival-Linked Promotions
Launching with entry-level prices around shopping festivals like Double 11 or 618 leverages high consumer buying momentum.
3. Building Brand Desirability During Discounts
3.1 Influencer “First Look” Promotions
Using KOLs to frame discounted launches as exclusive “sneak previews” boosts perceived exclusivity rather than signaling cheapness.
3.2 Story-Driven Promotions
Linking discounts to meaningful narratives—like sustainability, craftsmanship, or social impact—enhances emotional connection.
4. Transitioning from Price to Loyalty
4.1 CRM-Based Retargeting
After penetration pricing ends, consultants implement loyalty rewards and VIP programs to retain customers at regular prices.
4.2 Premium Product Launches
Brands introduce premium versions post-penetration phase, enabling natural price increases without losing existing customers.
Case Study: Italian Personal Care Brand Market Entry
An Italian personal care brand launched with 25% discounted prices for early adopters on Xiaohongshu, supported by influencer “unboxing” videos. After two months, they transitioned to normal pricing, retaining over 70% of customers via CRM loyalty programs and upselling new premium SKUs.
Conclusion
For new brands, penetration pricing isn’t just about low prices—it’s about creating urgency, building brand excitement, and fostering long-term loyalty. Expert consultants craft launch strategies that transform early discounts into sustainable growth.
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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