(Source: https://pltfrm.com.cn)
Introduction
China’s premium goods market is one of the fastest-growing segments globally. However, tapping into this lucrative market requires brands to craft pricing strategies that resonate with Chinese consumers while reflecting local market dynamics. This article explores effective methods for adapting premium pricing in China.
1. Combining Online and Offline Strategies
1.1 Higher Prices for Online-Exclusive Items
E-commerce is a key sales channel in China. By offering online-exclusive premium goods, brands can create a sense of exclusivity and justify higher prices.
1.2 Offline Store Personalization
Premium goods sold in physical stores can be personalized to appeal to local preferences, such as customized engravings or region-specific packaging, which allows for price differentiation.
2. Balancing Prestige with Accessibility
2.1 Smaller Product Sizes
Introducing smaller or travel-sized premium products makes luxury goods more accessible without compromising their premium positioning.
2.2 Entry-Level Luxury Options
Offering entry-level options, such as accessories or smaller luxury items, helps brands attract younger consumers aspiring to own premium goods.
3. Communicating Value Across Channels
3.1 Localized Campaigns on Red and Douyin
China’s dominant platforms, such as Xiaohongshu (Red) and Douyin (TikTok), provide a space to highlight the value and exclusivity of premium goods through influencer marketing and live commerce.
3.2 Incorporating Cultural Stories
Brands that connect their products with Chinese traditions or festivals, such as the Lunar New Year, resonate deeply with consumers and support premium pricing.
4. Managing Pricing Perceptions
4.1 Transparent Pricing Structures
Building trust with Chinese consumers requires transparency in pricing. Explaining what makes a product premium, from materials to craftsmanship, helps justify costs.
4.2 Discounts for VIPs
Rather than offering broad discounts, brands can use exclusive VIP discounts for loyal customers, preserving the premium image while rewarding loyalty.
Case Study: An Italian Handbag Brand’s Multi-Channel Approach
An Italian luxury handbag brand leveraged e-commerce platforms like Tmall Luxury Pavilion to offer online-exclusive designs at higher prices. Simultaneously, they introduced in-store personalized engraving services for select collections. These combined efforts led to a 35% growth in China’s market and enhanced the brand’s reputation for offering unique, high-value experiences.
Conclusion
To succeed in China’s premium market, brands must balance accessibility and exclusivity through localized pricing strategies. By leveraging online and offline opportunities and communicating value effectively, brands can win over the discerning Chinese consumer.
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!
