(Source: https://pltfrm.com.cn)
Introduction
In China’s retail market, consumers interact with brands across multiple platforms—from livestreams and mobile apps to flagship stores and pop-ups. For overseas brands, maintaining consistent yet flexible pricing across these channels is crucial. A hybrid pricing model ensures profitability, enhances customer experience, and aligns with Chinese shoppers’ omnichannel expectations. This article explores how to design and implement hybrid pricing systems that work across both digital and physical sales channels in China.
1. Anchor Pricing for Consistency, Add-ons for Flexibility
1.1 Establish a Fixed Anchor Price
Set a consistent base price across all channels to maintain price integrity. This prevents pricing conflicts that can confuse customers or damage brand perception.
1.2 Channel-Specific Add-On Strategies
Use packaging upgrades, bonus SKUs, or service perks to create variation without lowering the base price. For example, a Tmall-exclusive gift or in-store complimentary service adds value without undercutting price.
2. Behavioral Data to Tailor Price Experiences
2.1 Leverage Cross-Channel Analytics
Track customer behaviors across platforms using tools like WeChat CRM, Alibaba DataBank, or Douyin Ads Manager. This data enables fine-tuned pricing personalization at the channel level.
2.2 Heat Mapping In-Store & Online Traffic
Identify which locations (physical or digital) have high conversion or dwell times. Adjust promotional pricing dynamically based on this insight—either to boost volume or enhance margin.
3. Event-Based Pricing Alignment
3.1 Synchronized Festival Pricing
During major sales events (e.g., 618, Singles’ Day), maintain uniform pricing across online and offline channels to avoid price conflict and maximize campaign reach.
3.2 Rolling Discounts with Time Zoning
In cases where full synchronicity isn’t viable, use staggered discounts—such as launching online discounts in the morning and in-store offers in the evening—to maintain control and momentum.
4. Integrating DTC and Retail Partner Strategies
4.1 Tiered Margin Frameworks for Resellers
For brands working with local retail partners, build a tiered margin structure into your pricing model. This keeps retail partners profitable while preserving unified customer-facing pricing.
4.2 Omnichannel Brand Store Controls
Where possible, open and operate official brand stores (online and offline). These become reference points for pricing and allow for tighter control over promotions and perception.
Case Study: US Smart Wearable Brand Creates Dynamic Hybrid Model
A U.S.-based fitness watch brand developed a hybrid pricing strategy for the China market, where their JD and Tmall prices matched the in-store price. However, each channel had a unique value proposition: livestream buyers received limited-time bundles; offline buyers enjoyed a free personal training session with purchase. Loyalty points accrued across all platforms. This alignment boosted cross-platform trust and doubled their returning customer rate over one quarter.
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!
