(Source: https://pltfrm.com.cn)
Introduction
Pricing is a strategic tool that evolves as your product matures. For premium brands operating in China, managing pricing across the product lifecycle ensures your value proposition stays consistent—while maximizing growth, market coverage, and customer loyalty. From initial rollout to final clearance, global brands must tailor pricing tactics to meet local expectations at each phase. This article details how to implement lifecycle-based pricing strategies that drive long-term value across your premium product lines in China.
1. Launch Stage: Set Pricing to Establish Positioning and Expectation
Begin with prestige pricing to anchor perceived value
In China’s premium space, an elevated launch price reinforces exclusivity and trust. Backed by high-end content, RED seeding, and Mini Program pre-sales, this approach solidifies brand positioning.
Limit access to build buzz and justify pricing
Launch through VIP-only channels or with a limited-edition packaging drop. Controlled distribution creates a luxury narrative that supports price integrity through subsequent stages.
2. Growth Stage: Expand Reach Through Tiered and Bundled Offers
Introduce sub-SKUs without lowering flagship pricing
Develop alternative formats—smaller sizes, seasonal kits, or regional exclusives—to attract new buyers while protecting core SKU margins.
Bundle for perceived value instead of offering discounts
Offer 2-in-1 kits, curated collections, or themed bundles tied to Chinese holidays. This increases average order value and keeps price architecture stable.
3. Maturity Stage: Maintain Premium Value With CRM-Driven Incentives
Reward loyalty through private traffic and member-only perks
Rather than public markdowns, use WeCom or Mini Program tagging to offer early access, styling services, or custom packaging to repeat buyers.
Use milestone campaigns for storytelling, not clearance
Promotions themed around brand anniversaries or product milestones preserve brand dignity, especially when positioned as limited-time celebrations.
4. Phase-Out Stage: Exit Gracefully With Legacy Positioning
Close product lines with storytelling, not discounts
A retiring SKU can be repositioned as a collectible, end-of-era item with a farewell message or signature design variant—protecting brand prestige even in final sales.
Transition customers to upgraded or next-gen SKUs
Offer concierge guidance via WeCom to help loyal customers shift to newer product lines. Provide incentives like loyalty bonuses, early trials, or private group previews.
Case Study: U.S. Beauty Brand Maintains Brand Equity Through Lifecycle-Based Pricing
A California-based skincare brand implemented a full lifecycle pricing strategy in China. New collections launched with prestige pricing and RED-driven storytelling. Growth-stage kits were bundled during 6.18 and Qixi. At maturity, members received early access to gift-with-purchase bundles. When retiring SKUs, the brand introduced “Legacy Kits” featuring upgraded packaging. The result: sustained premium perception, with less than 10% of total sales requiring markdowns.
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!
