(Source: https://pltfrm.com.cn)
Introduction
For overseas brands entering China, the B2C market presents a golden opportunity—especially in the mid-tier pricing zone, where consumers seek both value and quality. The challenge? Setting a pricing structure that resonates with China’s cost-conscious yet brand-aware shoppers without overspending on research or restructuring. This article walks you through affordable tactics to build an effective mid-tier pricing model.
1. Analyze Existing Mid-Tier Competitors
1.1 Track Top Mid-Range Sellers
Search for category leaders in the ¥100–¥300 range on Tmall or JD. Pay attention to pricing patterns, product features, and bundled offers. Note the brands with high sales volumes and customer loyalty.
1.2 Evaluate Value Proposition Messaging
Study how mid-tier competitors position their quality—do they highlight ingredient sourcing, design origins, or packaging innovation? These cues help you align pricing with perceived value.
2. Build a Tiered Offering to Reinforce Mid-Tier Value
2.1 Use the “Good-Better-Best” Structure
Position your core SKU as the “better” option, priced just above low-end brands but well below premium. Then build a “good” (basic) and “best” (enhanced) SKU around it.
2.2 Create a Modular Bundle Option
Instead of a big price drop, offer your mid-tier product in bundles (e.g., product + sample or refill) to give a value feel while retaining margin.
3. Keep Cost Control in Mind With Packaging and Logistics
3.1 Optimize Packaging for Shelf Perception
Use lightweight but premium-looking packaging materials. Visual appeal plays a major role in justifying mid-tier pricing in China’s image-driven marketplaces.
3.2 Local Fulfillment to Reduce Overheads
Work with bonded warehouses in cross-border zones like Ningbo or Zhengzhou. Lower logistics costs allow you to hold a mid-tier price point while maintaining profit.
4. Promote Mid-Tier as the “Smart Choice”
4.1 Highlight Savings Over Premium Brands
Compare your mid-tier option against expensive international labels, showing 20–30% savings without compromising on key features.
4.2 Leverage KOC Testimonials
Use micro-influencers to reinforce trust in your price-to-quality ratio. Chinese consumers respond well to real user feedback when validating a mid-range product.
5. Case Study: Nordic Personal Care Brand’s Mid-Tier Pivot
A Nordic body care brand initially launched in China with premium pricing but saw low conversion. After a quick pricing review, they repositioned their best-seller at ¥109, supported by minimal packaging and local warehousing. They bundled two other SKUs for ¥249 and promoted the set during Xiaohongshu campaigns. This shift brought their repeat customer rate up by 40% and helped the brand solidify its mid-tier identity within 6 months.
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!
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