What is the pricing strategy of thermos cups in the Southeast Asian market?

What is the pricing strategy of thermos cups in the Southeast Asian market?

Pricing strategy of thermos cups in the Southeast Asian market
Due to its unique climatic conditions, consumption habits and cultural background, the Southeast Asian market has different characteristics in terms of demand and preference for thermos cups from other regions. This article will discuss in detail the pricing strategy of thermos cups in the Southeast Asian market, analyze the factors affecting pricing, and provide specific strategic recommendations.

I. Characteristics of the Southeast Asian market
1. Climate conditions
The climate in Southeast Asia is hot and humid, with an average temperature between 25 and 35 degrees. Therefore, consumers prefer to use thermos cups to keep drinks cool rather than to keep hot drinks warm. For example, Filipino consumers usually add ice cubes to thermos cups at home and add water after going out to keep the drink cool.

2. Consumer preferences
Consumers in Southeast Asia not only regard thermos cups as functional products, but also as fashion accessories. Therefore, the appearance design and color selection of the product have an important impact on consumer purchasing decisions. For example, Filipino consumers prefer restrained colors, while Malaysian consumers prefer conspicuous styles.

3. Market growth potential
The Southeast Asian e-commerce market is growing rapidly and is one of the fastest growing regions in the world. According to a report released by eMarketer, Southeast Asia accounts for half of the top 10 fastest growing e-commerce markets, with the Philippines, Malaysia, Thailand, and Vietnam all on the list.

2. Factors affecting pricing

1. Cost orientation

Cost is the basis of pricing strategy, including raw material costs, production costs, R&D and design costs, and marketing costs. These costs will directly affect the pricing bottom line of the thermos cup. For example, CIVAGO’s thermos cup uses austenitic 316 stainless steel, which has excellent corrosion resistance and acid and alkali resistance. It is certified by the US FDA and has a high cost.

2. Market demand

The strength of market demand will also affect the pricing of the thermos cup. If a certain thermos cup is very popular in the market and is in short supply, the price may increase accordingly. On the contrary, if the market demand is insufficient, the price may be lowered to stimulate sales. For example, a water cup priced at US$5.87 from CIVAGO has sold thousands of pieces in the past 7 days, with a five-star praise rate of 91.44%.

3. Brand positioning and differentiation

Brand positioning and product differentiation are also important factors in pricing. High-end brands of thermos cups often focus on quality, design and user experience, so they are priced higher. Mid- and low-end brands pay more attention to cost-effectiveness and have more affordable pricing. For example, CIVAGO successfully attracted consumers’ attention by launching a gradient-colored thermos cup, which became a hot-selling item on Shopee.

III. Specific pricing strategies

1. Cost-plus pricing
Cost-plus pricing is one of the most common pricing strategies. Companies first calculate the total cost of the product, then add the expected profit percentage to determine the final selling price. For example, CIVAGO’s thermos cup was sold at a price of $5.87 after considering the costs of raw materials, production, R&D and marketing, ensuring cost coverage and reasonable profits.

2. Market-oriented pricing
The market-oriented pricing strategy determines prices based on market demand and competition. In the Southeast Asian market, due to the high demand for thermos cups among consumers, companies can appropriately increase prices. For example, the gradient-colored thermos cup launched by CIVAGO in the Philippine market has a relatively high price because there are no similar products on the market, but it is still popular among consumers.

3. Differentiated pricing
The differentiated pricing strategy increases the added value of the product by providing unique functions or designs, thereby increasing the price. For example, CIVAGO’s thermos cup uses tailless vacuum technology and copper plating technology to ensure better insulation performance, so it can be priced higher.

4. Promotional pricing
The promotional pricing strategy stimulates sales by regularly reducing prices or offering preferential activities. For example, CIVAGO launches promotional activities during the off-season or on specific festivals to reduce prices and attract more consumers to buy.

IV. Success Case Analysis
1. CIVAGO
CIVAGO achieved an annual GMV of US$12 million by entering the Southeast Asian market from the perspective of “keeping cold”. The key factors for its success include:

Product innovation: The launch of gradient-colored thermos cups meets consumers’ demand for fashionable appearance.
Technical advantages: The use of tailless vacuum technology and copper plating technology ensures better insulation performance.
Market positioning: In response to the climatic conditions and consumer preferences in Southeast Asia, a thermos cup suitable for keeping cold was launched.
Pricing strategy: Combining cost-plus and market-oriented pricing ensures the competitiveness and profit margin of the product.
2. Owala
Owala’s freesip series products have become popular in overseas markets with their “high appearance”. The key factors for its success include:

Appearance design: The product appearance design is unique and attracts the attention of consumers.
Brand marketing: Through social media and influencer marketing, the brand’s popularity and influence have been improved.
Pricing strategy: Provide products in a variety of price ranges to meet the needs of different consumers.
V. Conclusion
The pricing strategy of thermos cups in the Southeast Asian market needs to comprehensively consider factors such as cost, market demand, brand positioning and product differentiation. Through cost-plus, market-oriented, differentiated and promotional pricing strategies, companies can ensure the competitiveness and profit margins of their products. The success cases of CIVAGO and Owala show that innovative design, technological advantages and market positioning are key factors. I hope this article will help you understand the pricing strategy of thermos cups in the Southeast Asian market.