(Source: https://pltfrm.com.cn)
Introduction
China’s mid-tier consumer segment is expanding, and with it comes an appetite for products that blend quality and affordability. For overseas brands, this is a prime entry point—but it requires a pricing structure that’s both strategic and cost-effective. This article explores how to build a mid-tier B2C pricing model for China without high consulting fees or complex restructuring.
1. Define a Clear Mid-Tier Positioning Strategy
1.1 Research Price Ranges Across Categories
On platforms like Douyin, JD, and Xiaohongshu, identify what defines the “middle range” in your product category. Typically, it sits above ￥99 but below ￥299 for daily-use consumer goods.
1.2 Link Pricing to Lifestyle Segments
Map your pricing not just to product type but to usage scenarios—family dining, student dorm essentials, or urban skincare routines. This approach supports emotional resonance with buyers.
2. Design Pricing to Fit China’s Platform Ecosystem
2.1 Price for Search Engine Filters
Many users filter by price (e.g., ￥100–￥199), so position your lead SKUs to fall within these visible brackets to improve discoverability.
2.2 Adjust for Platform Commission Fees
Ensure your mid-tier pricing accounts for transaction fees (3–10%) on Tmall or JD, as well as any platform promotional deductions. Factor these in before setting your final shelf price.
3. Reinforce Value With Local-Ready Product Variants
3.1 Localize SKU Sizes or Units
If your standard product is too expensive per unit, create smaller pack sizes that fit the mid-tier window. Chinese consumers value unit-based affordability.
3.2 Introduce Trial Sets or Combo Packs
For categories like fragrance, food supplements, or cosmetics, offer mid-tier combo sets to build perceived value without deeply discounting.
4. Use Storytelling and Trust Signals to Anchor Pricing
4.1 Share Brand Story in Product Descriptions
Mid-tier pricing is justified by brand credibility. Highlight your brand origin, sustainability credentials, or innovation features to justify a ￥149–￥249 price tag.
4.2 Trust Badges and Certification Logos
Display certifications like “进口商品” (imported product), ISO, vegan, or cruelty-free badges. These reassure mid-tier consumers they’re buying a reliable international product.
5. Case Study: Australian Health Snack Brand’s Mid-Tier Breakthrough
An Australian healthy snack brand initially struggled with pricing at ￥299 per box. After a competitor review and platform analysis, they introduced a ￥179 5-pack value set and a ￥99 trial-size offer. Their Tmall GMV tripled in 60 days, with their mid-tier SKU becoming the lead driver. Pricing changes were accompanied by short-form videos explaining ingredient sourcing and product benefits, which resonated with urban professionals seeking balanced value.
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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