(Source: https://pltfrm.com.cn)
Introduction
Pricing is not static—it should evolve with the product lifecycle. In China’s premium sector, where consumers are highly attuned to value cues and social perception, managing lifecycle pricing is essential for maintaining relevance and profitability. From launch to phase-out, each stage presents opportunities to reinforce brand positioning and strengthen customer relationships. In this article, we explore how overseas brands can strategically manage pricing across product lines to sustain growth and elevate brand equity in China.
1. Launch Phase: Price to Signal Status and Exclusivity
Introduce premium SKUs with aspirational pricing and limited access
Position launch products with high-end pricing backed by strong storytelling. Use Mini Program exclusives, KOL co-branded editions, or by-invitation pre-sales to generate early traction.
Support pricing with elevated packaging and social proof
Collaborate with top-tier influencers or stylists on Xiaohongshu to validate your price point. Premium consumers in China seek community reinforcement before purchasing at high-ticket levels.
2. Growth Phase: Expand Without Diluting Brand Value
Offer mid-tier SKUs or discovery formats to capture new segments
Add smaller sizes, cross-category bundles, or new scents/styles that lower the entry barrier but stay within the premium price band.
Segment pricing by platform and audience
Use JD for core product delivery, livestreaming for mid-tier trial kits, and WeChat Mini Programs for personalized journeys. Each channel supports different pricing layers.
3. Maturity Phase: Maximize Margin While Protecting Image
Activate CRM-driven engagement over deep discounting
Reward high-LTV users with WeCom-only promotions, loyalty perks, and early-access campaigns. Avoid mass discounting that may erode perceived value.
Repurpose packaging or formats to refresh product appeal
Introduce limited-run colorways or “anniversary packaging” to extend product lifecycle. These refreshes offer novelty without impacting the original price tier.
4. End-of-Life Phase: Transition With Premium Positioning
Use final runs and limited reissues to elevate legacy products
Frame phase-out products as special editions—e.g., “last run,” “heritage edition,” or “closing collection.” This maintains emotional connection and justifies price integrity.
Use data to guide product migration across your catalog
Analyze user preferences via Mini Program tagging or Tmall behavior to suggest suitable replacements. Upsell to similar or upgraded SKUs with personalized WeCom outreach.
Case Study: Dutch Design Brand Sustains Premium Value With Lifecycle Pricing
A Dutch home décor label executed a pricing lifecycle strategy across its modular shelving line. The launch was positioned at a premium with hand-crafted packaging. Mid-cycle, smaller configuration kits were introduced at a slightly lower price to appeal to first-time buyers. Mature SKUs were refreshed with color variations, and retired items became part of a “Legacy Series.” The result: brand AOV increased by 26% and markdown rates stayed below 8% annually.
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!
