(Source: https://pltfrm.com.cn)
Introduction
For global brands in China’s premium market, pricing is not a one-time decision—it’s a dynamic strategy that evolves throughout the product lifecycle. From initial launch to market maturity and eventual phase-out, each stage requires tailored pricing decisions that support brand equity, revenue targets, and consumer expectations. Effective lifecycle pricing management ensures consistency across product lines while maximizing margin and customer loyalty. This article outlines how to build and manage premium pricing strategies across every phase of your product’s lifecycle in China.
1. Launch With Premium Anchoring and Controlled Scarcity
Set high initial pricing to establish prestige and desirability
In China, first impressions matter. Price your product to reflect its highest value—limited edition releases or VIP-only pre-sales can anchor premium perception from day one.
Use scarcity to drive urgency and narrative
Partner with RED influencers or launch through Mini Programs with limited inventory. Controlled availability in the early stage reinforces exclusivity and supports long-term price protection.
2. Stabilize Pricing During the Growth Phase With Tier Structuring
Introduce pricing variations through formats, SKUs, or bundling
Once demand is proven, expand your offer through tiered SKUs—like standard vs. gift sets—to capture broader audiences without discounting core products.
Manage channel-specific pricing to maintain consistency
During growth, distribute across platforms such as Tmall and JD, but control which SKUs go where. Consultants can help design platform-specific bundles that protect margins while maximizing reach.
3. Extend Product Maturity Through Targeted Promotions and Loyalty Offers
Avoid deep discounts—reward loyalty instead
Rather than lowering prices broadly, use CRM-driven tactics like WeCom-exclusive gifts, early access, or cross-product bundles to drive continued purchases from existing customers.
Maintain premium image through curated campaign timing
Align pricing events with China’s major ecommerce dates—such as 6.18 or Double 11—but frame them as “member appreciation” or “brand milestone” campaigns, not clearance events.
4. Manage Phase-Out With Limited Reissues or Collector Editions
Position product retirement as an exclusive closing chapter
When winding down a product line, consider releasing a final edition with upgraded packaging or a story-driven twist. This approach protects brand integrity while capturing final-stage sales.
Redirect loyal users to next-tier product lines
Use CRM data to identify who should be invited to upgrade. Offer personalized recommendations, loyalty-tier incentives, or WeCom concierge support to ease the transition and preserve lifetime value.
Case Study: French Fragrance Brand Drives Repeat Purchase With Lifecycle Pricing Strategy
A Paris-based fragrance house managed its pricing across three lifecycle phases. New collections launched at a premium via WeCom, mid-life SKUs were bundled during major festivals, and end-of-life editions were reintroduced as limited “Heritage Sets.” This structured approach resulted in a 37% increase in repeat purchase rate and a 22% lift in average order value over 12 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!
