(Source: https://pltfrm.com.cn)
Introduction
In China’s premium market, consumers use price as a proxy for value, status, and authenticity. For global brands, aligning price tiers with brand positioning is not just a financial decision—it’s a strategic necessity. An effective pricing architecture reinforces your premium identity, clarifies your customer journey, and enables segmentation without brand erosion. This article explores how overseas brands can structure their price tiers to strengthen premium positioning while scaling effectively in China.
1. Define Clear Price Tiers That Reflect Strategic Brand Layers
Use a tiered structure to support multiple consumer entry points
Develop distinct levels—such as entry, core, and prestige—that cater to different spending capacities. Each tier should maintain brand DNA while offering variation in exclusivity, experience, and product depth.
Ensure each tier delivers value appropriate to its positioning
Entry-level SKUs can emphasize design and accessibility. Mid-tier products offer differentiated materials or limited editions. Top-tier SKUs must embody craftsmanship, scarcity, or legacy.
2. Activate Tiers Through the Right Channel Ecosystem
Map price tiers to differentiated distribution platforms
Sell prestige collections via Tmall Luxury Pavilion or by-appointment WeCom channels. Mid-tier items can go to RED or Mini Programs with a concierge shopping layer. Entry SKUs may appear in curated livestreams or private domain pop-ups.
Control discounting and exposure by tier
Avoid cross-tier cannibalization by ensuring entry SKUs don’t appear in premium-only contexts, and that high-end items remain shielded from price-sensitive promotions.
3. Align Content, Packaging, and Service With Tier Intent
Differentiate packaging and user experience per tier
Use upgraded packaging, handwritten notes, and fast-tracked delivery for higher tiers. Entry-tier SKUs can focus on sleek simplicity and digital unboxing content. This enhances perceived value at every level.
Match tone and visuals to brand hierarchy
Visuals for premium items should emphasize art direction, luxury lifestyle, or heritage cues. Entry-tier assets may lean more into urban, aspirational storytelling to broaden appeal without diluting brand strength.
4. Use CRM and Private Traffic to Promote Tier Progression
Track buyer behavior and trigger upgrade campaigns
If a buyer purchases an entry-level product twice, target them with personalized upsell offers, loyalty perks, or invitations to limited-tier product previews.
Build VIP tiers through WeCom-driven segmentation
Assign sales reps or stylists to guide high-value customers up the brand ladder. Through personalized touchpoints, customers develop emotional connection and increased willingness to invest in premium SKUs.
Case Study: Milan-Based Footwear Brand Enhances Premium Identity With Tiered Positioning
A high-end Italian sneaker label implemented a three-tier strategy: Urban (entry), Crafted (mid), and Atelier (prestige). Urban items were seeded via Douyin creators and livestreams, while Atelier pairs were reserved for WeCom VIP clients and offline activations. Product packaging, storytelling, and access were carefully tailored per tier. Within the first six months, 60% of mid-tier buyers upgraded to Atelier, and brand mentions on RED increased by 41%.
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!
