(Source: https://pltfrm.com.cn)
Introduction
Tiered product strategies are essential for any overseas brand looking to grow in China. They allow you to cater to different levels of consumer spending without flooding your inventory. Whether you’re targeting first-time buyers or high-AOV loyalists, product tiering enables you to scale sales, test pricing elasticity, and maximize platform performance—all on a lean budget. Here’s how to make it work affordably and effectively.
1. Structure Your Tiers Around Value, Not Just Price
1.1 Value-Driven Tier Labels
- Approach: Use names like “Essentials,” “Everyday,” and “Premium Care” to frame tiers around benefits, not just pricing.
- Impact: Builds emotional resonance while avoiding price sensitivity as the sole decision driver.
1.2 Highlight Functional Differentiation
- Strategy: Base your tiers on usage patterns—e.g., “introductory,” “routine,” and “intensive” use cases.
- Example: A cosmetics brand could tier by frequency (travel vs. daily vs. professional kits).
2. Optimize Entry-Level Products for Customer Acquisition
2.1 Leverage Flash Sales and KOC Promotions
- Tactic: Offer limited-time pricing on low-tier SKUs to attract trial users.
- Best Platform: Use Douyin or Xiaohongshu to launch these offers with creator support and QR-based tracking.
2.2 Free Gift-With-Purchase Options
- Add-On Strategy: Include sample sizes of mid-tier products as free gifts in entry-tier orders.
- Retention Hook: Creates a natural pathway to upsell without pushing aggressively.
3. Use Mid-Tier as Your Profit Engine
3.1 Bundle for Core Revenue
- Structure: Design mid-tier sets with balanced margins, focused on hero products and seasonal relevance.
- Bundling Tip: Rotate themes every 30–45 days to keep buyers engaged and encourage recurring purchases.
3.2 Incentivize Repurchase Behavior
- CRM Integration: Offer point accumulation or exclusive refill kits to customers who return within 60 days.
- Upsell Trigger: Time promotions to align with expected product depletion cycles.
4. Position Premium Tiers as Limited or Member-Only
4.1 Drive Exclusivity
- Visual Cue: Use upgraded packaging, vertical video storytelling, or local celebrity endorsement to signal exclusivity.
- Sales Event Match: Best leveraged during Double 11, Valentine’s Day, or Qixi Festival for gifting.
4.2 Member-Only High-Tier Access
- Mechanism: Unlock access to premium SKUs only for members who have purchased twice or spent over a threshold.
- Loyalty Benefit: Enhances lifetime value without overexposing high-cost inventory.
Case Study: German Pet Care Brand Boosts AOV via Tiering Strategy
A German pet supplement brand entering China adopted a three-tiered product strategy on JD Worldwide and Tmall Global: trial chews (¥59), monthly health kits (¥179), and VIP breed-specific bundles (¥399). They used KOCs to seed entry products on Douyin, followed up with JD remarketing to pitch mid-tier kits. Premium bundles were reserved for repeat buyers via WeChat loyalty clubs. The result: a 28% jump in AOV and a 31% uplift in second-month retention—without increasing SKU count.
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!
