(Source: https://pltfrm.com.cn)
Introduction
In China’s B2C market, pricing plays a defining role in how a brand is perceived. While premium and budget segments are crowded, the mid-tier space offers an untapped sweet spot—if priced right. For overseas brands, crafting a mid-tier pricing structure doesn’t require excessive investment. This article explores affordable, scalable approaches to position your brand competitively within China’s mid-market range.
1. Define the Mid-Tier Price Band for Your Category
1.1 Use Category Benchmarks to Set Ranges
Check top Chinese platforms—JD, Tmall, Douyin—for your product category. Identify the pricing clusters and isolate the range where mid-tier SKUs (typically ￥80–￥300) dominate.
1.2 Segment by Function and Use Case
A mid-tier skincare item may be ￥129, while a home gadget’s range could be ￥199–￥399. Always match pricing tiers to perceived functionality and daily usage.
2. Develop Tiered SKUs With Value Separation
2.1 Anchor With a Hero SKU at Mid-Range
Select one best-seller to price right in the mid-tier sweet spot. This becomes the reference point for your category presence.
2.2 Add Entry and Premium Adjacent SKUs
To support your mid-tier position, introduce one budget version (e.g., smaller size) and one high-end model. This gives consumers the illusion of choice and nudges them toward the middle.
3. Justify Mid-Tier Value Through Packaging and Messaging
3.1 Emphasize Ingredient or Feature Quality
In China, consumers justify higher pricing if the product is “imported,” “natural,” or “limited edition.” Highlight such claims with visuals or trust badges.
3.2 Show Value with Comparison Frames
Use charts or influencer content to compare your product to both higher-priced and lower-priced alternatives, reinforcing why yours is the “just right” option.
4. Use Discounts Without Destroying Mid-Tier Perception
4.1 Offer Bundles Instead of Price Cuts
Instead of discounting your mid-tier SKU, bundle it with accessories or samples. This maintains the price point while enhancing perceived value.
4.2 Use Time-Limited Coupons Strategically
Limit coupons to events like 618 or Double 11 and offer small, condition-based discounts (e.g., ￥20 off ￥199) that don’t degrade brand perception.
5. Case Study: Swiss Kitchenware Brand’s China Entry
A Swiss kitchen tools brand launched on Tmall targeting mid-income households. They set their flagship knife at ￥268—well below luxury brands but higher than domestic options. The pricing was backed by Swiss-origin messaging, influencer demos, and gifting during launch. They offered a smaller version at ￥149 and a two-knife bundle at ￥399. This pricing pyramid boosted their mid-tier product’s conversion rate by 31% within the first quarter.
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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