(Source: https://pltfrm.com.cn)
Introduction
Chinese consumers span a wide range of price sensitivities, preferences, and expectations—especially across city tiers and income groups. A well-structured product tiering strategy can help overseas brands cater to diverse audiences while maximizing both reach and profitability. This article offers practical guidance on how to design an affordable, high-impact product tiering model that fits China’s fast-paced e-commerce ecosystem.
1. Define Clear Entry, Mid, and Premium Tier Logic
1.1 Entry-Level Products for Mass Market Reach
- Goal: Capture new users with low-commitment SKUs—trial sizes, travel kits, or single-use packs under ¥99.
- Platform Fit: Ideal for exposure campaigns on Douyin or Xiaohongshu where consumer testing behavior is high.
1.2 Mid-Tier SKUs for Value-Conscious Regulars
- Structure: Bundles or full-size core products that deliver strong value at mid-range prices (¥129–¥249).
- CRM Benefit: These SKUs often convert first-time buyers into repeat customers when paired with loyalty rewards.
1.3 Premium Offers for High-AOV Buyers
- Format: Gift sets, exclusive limited editions, or high-volume bundles that justify premium pricing.
- Target Audience: Tier 1 cities, business gifting, or brand loyalists looking for elevated experience.
2. Bundle Strategically Within Each Tier
2.1 Starter Kits at Entry Level
- Design Tip: Combine bestsellers + one niche product to encourage exploration without risk.
- Value Message: Emphasize trial + savings (e.g., “3-in-1 discovery kit for ¥89”).
2.2 Solution-Based Mid-Tier Bundles
- Use Case: Offer product combinations built around lifestyle needs—like “Daily Skincare,” “Home Office Essentials,” or “Post-Workout Recovery.”
- SaaS Sync: Tie bundle logic to behavior data for tailored offers based on browsing or purchase history.
3. Use Tiered Structure to Drive Upsell and Retention
3.1 Encourage Basket Expansion via Visible Upgrades
- Display Strategy: Show “Upgrade for Only ¥30 More” next to mid-tier SKUs to push AOV upward.
- Automation Tip: Use dynamic pricing displays to trigger these nudges at checkout.
3.2 Loyalty Triggers by Tier
- Tactic: Offer exclusive perks (free shipping, early access, birthday gifts) to buyers of mid- and high-tier products.
- Platform Link: Deploy via WeChat Mini Programs or in-store popups on Tmall.
4. Localize Pricing Tiers by Region and Platform
4.1 Match Tiers to City Tier Preferences
- Example: In Tier 3 cities, emphasize entry kits; in Tier 1, highlight premium SKUs and design collaborations.
- Operational Tip: Use identical SKUs with different featured imagery and messaging per city segment.
4.2 Platform-Based Tier Adjustments
- Douyin: Emphasize flash-deal entry products and bundles with strong visual unboxing appeal.
- JD/Tmall: Focus on mid- and high-tier products with long-form product pages and brand credentials.
Case Study: U.K. Wellness Brand Launches Tiered Strategy on Tmall
A U.K.-based wellness supplement brand entered the Chinese market with a three-tiered product line: a ¥69 intro trial kit, a ¥189 mid-range core pack, and a ¥349 “premium performance” bundle. Targeting different city tiers via customized visuals and regional KOLs, the campaign drove a 33% boost in first-time purchases. The mid-tier pack saw the highest repurchase rate, while premium bundles accounted for 41% of total revenue within 60 days.
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!
