Crafting tailored pricing strategies for global growth

Setting tailored pricing strategies to grow your international markets and boost conversions. Here's how 👇
🌍 Economic landscape

Understand the economic context of your targeted market
Research spending habits as the high per capita income of a country (e.g. UAE) does not necessarily equate to price insensitivity, and vice versa
When locals' willingness to pay is low, they'd find ways for free access despite it might involve a long process or hassle

🏆 Competitive landscape

Identify local & international competitors
Study their pricing strategies & market share
Use that as a reference, not a constraint. Align your pricing strategy with your brand identity & value proposition

💎 Perceived value and attitudes towards paying

Determine locals' value perception Vs their willingness to tolerate limitations, e.g. Ads, content access delays, limited features
How much they're willing to pay for a product/service varies across categories & markets
✨ E.g. Indians are price-sensitive with essential goods like groceries (which account for a large portion of household spending with a big family setup), but less so with experiences that provide social connection, personal growth or lasting memories. On the contrary, Americans are price-sensitive with experiences due to the availability of affordable alternatives
Perceived values could be in many dimensions - functional, social, emotional, conditional and epistemic
✨ E.g. Japan has a cultural emphasis on quality and craftsmanship hence Japanese have a higher willingness to pay a premium for well-made products
✨ E.g. Filipinos or Kenyans are more willing to pay for video streaming services but not music. Why? The former is a shared experience (e.g. watching with family so it's more worthwhile). The latter is personal (e.g. one-person usage so it feels less justified, more guilty)
Emphasise the perceived values that are important to your local markets to empower you to set a pricing strategy that might be higher than your competitors

💰Local currencies

Local currencies enhance the customer experience and demonstrate your commitment to the local market
In some cases, pricing in a foreign currency, e.g. EUR instead of RON in Romania, may not be a significant barrier to purchase as locals are familiar with the conversion between the currencies
Prioritise addressing other key conversion blockers if they exist. But make sure to offer prices in local currencies, when possible

🎎 Cultural aspects

Consider cultural influences on pricing
✨ The number 8 represents wealth or fortune in China, leading to the prevalence of pricing that ends in 8 (e.g. ¥118) instead of 99 in the Western culture (e.g. £2.99, the 'charm prices', making items appear cheaper)

Tailor your pricing strategies to local contexts and consumer behaviours to succeed in global markets.