(Source: https://pltfrm.com.cn)
Introduction
With Chinese consumers shopping across multiple platforms and city tiers, a one-size-fits-all product strategy limits growth. Product tiering—offering clearly structured value propositions at different price points—empowers overseas brands to appeal to varied budgets without bloating their SKU list. This article outlines how to implement an affordable product tiering model that increases conversion, supports upselling, and drives long-term brand loyalty in China.
1. Establish Tiering Based on Consumer Behavior, Not Just Price
1.1 Define Use Case-Based Tiers
- Approach: Structure product tiers by customer needs rather than arbitrary price gaps—e.g., “Intro Use,” “Daily Routine,” and “Advanced Solution.”
- Conversion Boost: Makes each tier feel intentional and relevant, encouraging buyers to self-identify with the right package.
1.2 Set Clear Differentiation Between Tiers
- Product Presentation: Use distinct packaging, copy tone, or benefits highlighted per tier.
- Psychological Impact: Clear visual hierarchy influences perceived value and supports price anchoring.
2. Keep Entry-Level SKUs Simple and Cost-Efficient
2.1 Trial-Size Singles or Sample Kits
- Goal: Eliminate buyer hesitation by offering SKUs under ¥99 with free shipping or coupons attached.
- Platform Fit: Ideal for WeChat Mini Program popups or Xiaohongshu KOC campaigns targeting new followers.
2.2 Affordable Introductory Bundles
- Tactic: Bundle high-volume, low-cost items to create perceived value while controlling margins.
- Labeling Tip: Use terms like “starter kit” or “first-timer pack” to position as entry-level.
3. Use Tiered Structures to Encourage Cross-Sell and Repeat Purchases
3.1 Link SKUs Across Tiers
- Strategy: Include lower-tier items inside mid-tier bundles or offer mid-tier users exclusive upgrades to high-tier.
- SaaS Enablement: Automate these flows through CRM-based recommendations or post-purchase offers.
3.2 Loyalty Progression System
- Example: Unlock higher-tier perks (e.g., access to limited editions, members-only bundles) based on past purchases.
- Execution Tip: Reinforce status with WeChat badges or personalized promotions in Douyin retargeting ads.
4. Tailor Your Tiers to Platform Ecosystems
4.1 Match Visual Expectations Per Channel
- Douyin: Emphasize lifestyle and impact visuals for lower-tier viral appeal.
- Tmall/JD: Use detailed storytelling and brand education for mid-to-premium SKUs.
4.2 Sync Tiering With Campaign Structures
- Sales Campaigns: Feature lower-tier products as entry points during 618 or Double 11, while premium tiers ride the halo of high traffic.
- Cross-Platform Strategy: Direct entry-tier buyers from Douyin or Xiaohongshu to your Tmall store for bundled upsells.
Case Study: U.S. Personal Care Brand Increases LTV with Tiered Bundles
A U.S. hygiene brand entered China with a basic 3-tiered structure: a ¥79 trial-size travel kit, a ¥199 daily routine set, and a ¥399 gift bundle. They used WeChat to offer entry-tier discounts and retargeted engaged buyers with mid-tier options via Tmall CRM ads. In 90 days, repeat purchase rates doubled, and 47% of trial buyers upgraded to mid or high-tier products. The brand scaled the model to JD with zero additional SKU development costs.
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!
