(Source: https://pltfrm.com.cn)
Introduction
With China’s DTC market becoming more saturated and consumer expectations more segmented, a pricing tier audit is no longer optional—it’s essential. For overseas brands, adjusting price tiers is not just about cutting prices but about finding the right structure that speaks to value, personalization, and cultural relevance. This article provides a practical framework for running a cost-effective pricing audit tailored to China’s DTC landscape.
1. Audit Tier Definitions and Perceived Value
1.1 Clarify What Each Tier Represents
Do your tiers reflect clear product or service upgrades? Ensure customers can distinguish why one tier costs more and what value they gain, especially in product-rich markets like beauty or wellness.
1.2 Localize the Tier Language
Instead of “Basic,” “Pro,” and “Premium,” consider labels like “入门装,” “日常装,” and “奢享装” to match local consumption psychology. Tier naming can influence how value is perceived.
2. Assess Performance by Tier
2.1 Order Breakdown by Tier
Pull DTC order data segmented by pricing tier. Are certain tiers cannibalizing others? Do users consistently downgrade or only purchase during promotions?
2.2 Usage Metrics Beyond Sales
For subscription or service-based DTC models, measure usage rates per tier. Low engagement at higher tiers may signal misaligned offerings or poor communication.
3. Evaluate Tier Relevance Across Platforms
3.1 Cross-Platform Tier Testing
Each platform (Douyin, JD, WeChat Mini Program) has a different audience and user behavior. Use audits to test whether each platform needs its own tier structure based on logistics, interface, or shopping behavior.
3.2 Optimize for Ecosystem Fit
For example, WeChat users may value services like delivery tracking or in-app CRM access in premium tiers. JD customers may prefer bulk-buy discounts or add-on warranties.
4. Re-Engineer Tier Benefits Based on Feedback
4.1 Collect Direct Feedback
Use post-purchase surveys, review data, and community channels to understand whether customers feel satisfied with what they received at each tier.
4.2 Remove or Refactor Underused Perks
If certain features or benefits go unused, consider eliminating them from the tier—or reshaping them to better align with actual customer needs (e.g., swap printed manuals for QR-based video tutorials).
Case Study: Singapore-Based Tech Accessory Brand Rebuilds Tier Ladder
A DTC electronics brand from Singapore launched in China with three tiers but saw inconsistent results across channels. After running a pricing audit, they learned their middle tier (¥399) was too close to the entry tier (¥299), yet lacked perceived benefit. They restructured it to include a “gift with purchase” and prioritized Douyin-specific videos highlighting its uniqueness. Post-adjustment, their middle-tier sales doubled and top-tier uptake increased by 19% on WeChat.
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!
