(Source: https://pltfrm.com.cn)
Introduction
Direct-to-consumer (DTC) brands have gained rapid traction in China thanks to digital-first shopping habits and the rise of private traffic ecosystems. However, with intense competition, price sensitivity, and rapidly shifting consumer expectations, having the right pricing strategy is critical to success. For overseas DTC brands, optimizing pricing in China means balancing brand positioning, platform dynamics, and local buyer behavior. This article outlines the core strategies to get your DTC pricing right—driving both conversions and sustainable margins.
1. Position Pricing Within Local Market Expectations
Benchmark against domestic and international peers
Chinese shoppers constantly compare prices across platforms and brands. Before setting a price, study competitors on Tmall, Douyin Store, and Xiaohongshu to understand local pricing anchors and discounting norms.
Don’t “go premium” without proof
DTC brands often default to premium positioning—but unless you communicate quality through local testimonials, packaging, or influencer validation, Chinese consumers may not buy into it.
2. Structure Tiered Offers to Match Consumer Decision Stages
Create “try me” pricing for acquisition
Offer low-commitment entry points such as travel-sized products, bundles under ¥99, or ¥9.9 welcome trials via WeChat. These work especially well for new users in RED and mini-program ecosystems.
Build progression pricing into product journeys
Design pricing to encourage upgrades—from single unit to bundles, or standard to deluxe. Messaging like “Upgrade to 3-month set and save 22%” performs well across Chinese digital storefronts.
3. Use Dynamic Discounting Without Diluting Brand Equity
Leverage seasonal and event-based pricing
Discounting during Double 11, 6.18, or Qixi Festival is expected in China. Plan these around tiered savings (e.g., ¥30 off ¥199) and pair them with exclusive bundles to retain perceived value.
Avoid over-discounting via private traffic
In WeChat CRM and WeCom chats, use hidden vouchers or loyalty pricing for returning users, avoiding public price cuts that can erode brand image.
4. Monitor Pricing Performance by Platform and City Tier
Optimize per channel with real-time analytics
What performs on Douyin may underperform on RED. Use platform-native tools to track pricing performance in terms of CTR, CVR, and cart abandonment.
Adjust pricing by region
A product priced at ¥159 might work well in Shanghai but may underperform in Tier 3 cities. Top-performing DTC brands run A/B tests by city tier to optimize pricing elasticity.
Case Study: Nordic Personal Care Brand Increases AOV with Tiered Douyin Pricing
A Nordic DTC skincare brand launched in China via Douyin and mini-programs. The brand tested three price points—¥89, ¥109, and ¥129—on its hero product, adjusting by region and user source. The mid-tier ¥109 bundle delivered the highest ROI. Customers cited “best value for money” in post-purchase surveys, and AOV increased by 26% compared to a flat pricing model.
Conclusion
For DTC brands in China, price is more than a number—it’s a tool for storytelling, conversion, and brand equity. A data-driven, locally tailored pricing strategy empowers overseas brands to grow faster and smarter in one of the world’s most competitive markets.
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!
