(Source: https://pltfrm.com.cn)
Introduction
For many global brands, premium pricing is a proven tactic—until they enter China. The Chinese market reacts to price in ways that challenge traditional Western logic. Price isn’t just about function or quality—it’s about symbolism, prestige, and even storytelling. This article explores common pricing mistakes global brands make and how premium pricing consultants correct them for sustainable growth.
1. Mistaking High Prices for Prestige
The False “Luxury” Signal
Without local storytelling, high prices appear arbitrary. Consultants help brands build product narratives that justify the price through craftsmanship, exclusivity, or origin.
Trust Indicators Are Missing
In China, credibility often precedes pricing. Consultants add social proof—like verified RED reviews, KOL endorsements, and Baidu presence—to build legitimacy first.
2. Over-Reliance on Discounts
Short-Term Wins, Long-Term Damage
Consultants help brands shift from blanket discounts to curated events—preserving brand equity while still driving urgency during 6.18 or Double 11.
Alternative Value Offers
Instead of cutting price, consultants introduce premium packaging, member gifts, or WeChat-only exclusives to increase value without hurting margins.
3. Ignoring Channel-Based Pricing Dynamics
Same Price, Different Context
A ¥999 product on Douyin may need a different positioning strategy than the same item on Tmall. Consultants tailor pricing strategy by platform and shopper expectation.
Grey Market Monitoring Tools
Consultants use software to monitor unauthorized listings, manage MAP enforcement, and tighten distribution control.
4. Misaligned SKU Architecture
Too Many “Mid-Range” SKUs
Brands often cluster in the middle. Consultants push brands to clarify pricing ladders, highlighting ultra-premium SKUs for halo effect and entry SKUs for acquisition.
Bundling Strategy Optimization
Smart bundling enhances perceived value. Consultants redesign product combinations to meet cultural gifting norms and seasonal demand spikes.
Case Study: German Kitchen Brand Rescues Premium Strategy in China
A luxury appliance company saw low traction despite global success. A premium pricing consultant repositioned the brand, added showroom-style RED content, and implemented a tiered pricing model that introduced entry-level SKUs alongside a flagship collection. AOV increased 64%, and RED traffic grew by 120% during their “home upgrade” campaign.
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!
info@pltfrm.cn
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