(Source: https://pltfrm.com.cn)
Introduction
The Chinese DTC landscape is complex and fast-evolving, requiring brands to fine-tune their pricing tiers constantly. Many overseas DTC brands make the mistake of simply replicating their home-market pricing ladder—without considering Chinese consumer expectations, platform costs, or behavior nuances. In this article, we reveal how to conduct an affordable, actionable pricing tier audit that aligns structure with strategy and maximizes conversion in China.
1. Review the Tier Structure Through a China-Specific Lens
1.1 Examine the Number and Spacing of Tiers
Most DTC pricing systems have 3 to 4 tiers, but Chinese consumers often expect more granular distinctions. Evaluate whether you need an additional “试用装” (trial set) or “奢享版” (luxury version) based on customer type.
1.2 Evaluate Psychological Price Points
Tier jumps that cross psychological barriers—like ¥299 or ¥499—can discourage upgrades. Consider revising tier spacing to remain within locally acceptable thresholds.
2. Assess Customer Segmentation Alignment
2.1 Behavior-Based Tier Mapping
Map customer purchase behavior to your existing tiers: do casual buyers consistently stick to the lowest plan? Are loyal repeat buyers underserved by your top tier?
2.2 Integrate CRM Insights
Use loyalty program data, coupon redemption patterns, and repeat rates to identify which tier features are most valued and which are being ignored.
3. Platform Cost and Margin Compatibility
3.1 Break Down Profit by Tier and Channel
Calculate net margin after platform fees, logistics, and service for each tier. A ¥199 tier may seem popular, but it could be unprofitable on JD.com or Xiaohongshu after all deductions.
3.2 Account for Add-On Services
Audit which tiers require customer service, post-sales support, or physical extras like packaging upgrades. Make sure these extras are priced in appropriately to protect profit.
4. Test Tier Modifications Using A/B Experiments
4.1 Run Small-Scale Tests on Specific SKUs
Split test one product with two pricing tier options across different WeChat segments or platform pages. Measure conversion, cart abandonment, and average order value.
4.2 Evaluate Perceived Value
Even without price changes, test different descriptions or benefits within the same tier. Sometimes copy optimization has greater impact than price reduction.
Case Study: UK-Based DTC Apparel Brand Adjusts Tier Strategy in China
A UK DTC activewear brand entered the Chinese market with global pricing tiers (¥299, ¥499, ¥799) but saw poor engagement. Through a targeted pricing audit, they introduced a ¥159 “discovery tier” with limited color options and added a ¥649 “gift-box edition” targeting Douyin and WeChat private traffic. The tier refresh improved total conversion by 31% and boosted top-tier sales by 42% through seasonal campaigns.
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!
