(Source: https://pltfrm.com.cn)
Introduction
China’s online marketplaces are highly dynamic, with pricing shifts happening in real time across platforms like Tmall, JD.com, Pinduoduo, and Douyin. For overseas brands, competitor price benchmarking isn’t just optional — it’s essential for staying competitive. Here’s how to build an agile, insights-driven price benchmarking system for success.
1. Setting Up a Comprehensive Competitor Monitoring Framework
1.1 Identifying Primary and Secondary Competitors
- Approach: Identify direct competitors (same category, same audience) and indirect competitors (substitutes or alternative solutions).
- Impact: Creates a layered view of the competitive landscape for sharper pricing strategies.
1.2 Platform-Specific Competitor Lists
- Method: Build separate monitoring lists for each marketplace, as pricing behavior can vary significantly between Tmall and JD, or JD and Pinduoduo.
- Benefit: Enables platform-tailored responses.
2. Leveraging Technology for Real-Time Price Tracking
2.1 Price Scraping Tools
- Tactic: Deploy automated scraping tools or partner with SaaS platforms that track daily price changes across platforms.
- Result: Minimizes manual tracking and ensures up-to-date intelligence.
2.2 Alerts and Competitive Dashboards
- Plan: Set threshold-based alerts when competitors run promotions, discounts, or bundle offers.
- Benefit: Allows faster, more reactive pricing adjustments.
3. Interpreting Benchmarking Data for Strategy
3.1 Pricing Positioning Analysis
- Method: Compare your median price positioning versus market averages for similar SKUs.
- Impact: Determines whether to position your brand as premium, value, or aspirational.
3.2 Promotional Calendar Mapping
- Strategy: Analyze competitor pricing behavior around major Chinese shopping festivals.
- Benefit: Helps forecast when aggressive discounting is needed — and when premium pricing can be preserved.
4. Adjusting Pricing Strategically Based on Benchmarking
4.1 Dynamic Price Adjustments
- Tactic: Move prices dynamically in response to competitor promotions while maintaining margin protection.
- Result: Stay competitive without falling into race-to-the-bottom price wars.
4.2 Value-Added Differentiation
- Approach: Where price undercutting isn’t possible, offer added services like extended warranties or loyalty points to maintain appeal.
- Impact: Preserves brand equity while staying market-relevant.
Case Study: A Swiss Watch Brand’s Competitive Benchmarking Journey
Entering Tmall, a Swiss luxury watchmaker closely tracked Chinese competitor brands during Double 11. When competitors discounted aggressively, the brand held firm on prices but bundled limited-edition gifts. This preserved its premium image and still achieved a 28% YoY sales increase, proving that smart benchmarking is not just about matching lower prices — it’s about strategic response.
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!
