DTC846: Price Localization, Gen Z Deep Dive, and Secretly Filming TikTok Ads

Good morning, 

Here’s what you’ll find in today’s DTC: 

🌎 Think Global, Act Local
How to price products by market. ‍

👀 Unpacking Gen Z
What this generation values most. 

📦 Daily Tariff Update
Breaking news.

🥸 High Converting TikTok Content
Why this ad style is taking off.  

You’re reading this newsletter along with new subscribers from: Nature’s Flavors, The Strong Band, and Domus Lighting. 👋

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🌎 Why Price Localization Matters

Are you localizing prices according to where customers are from?

Pilothouse shares as a best practice, brands should always try to show native currency to the region you're advertising to. 

Dougie from Pilothouse explains: “For Google Shopping placements, it is recommended to have separate product feeds for each country. Depending on the post-click setup given, you need to ensure your feed price matches your PDP price.”

Along with that, brands also need to adjust prices based on a country's purchasing power.

Price testing is a great way to gauge how customers are willing or able to pay for your product while managing cost volatility and protecting margins.

Google advertisers saw a 20% increase in revenue after strategically pricing their products in different markets. 

So don’t leave money on the table and do some testing!

Here's how to price strategically 👇

First off, who are you targeting?

High and low-context cultures have different associations with how they perceive prices.

Low-context cultures prioritizes tangible benefits and direct value when looking at price. (e.g. U.S., Canada, Germany, Australia, etc.)

But high-context cultures perceive prices differently. They are more inclined to buy for other reasons like getting social status or approval. (e.g. China, Japan, Korea, Africa, and the Middle East)

Different countries have different psychological pricing preferences.

Knowing that, here are some important numbers to note 👇

• Do your prices end in 9? 

Prices ending in .99 appear much more frequently in low-context cultures.

• Ending in 0 is seen more in high-context cultures.
  
• 8 is a number of symbolic significance in Asian countries like China, Japan, and Hong Kong. 

The number eight in Chinese sounds similar to the word for prosperity, and is often used when coming up with pricing.

• Price ending in 5 is seen more in low context cultures however, there are some exceptions to the rule.
  You often see 5 in India, which is a high-context culture.
  

The takeaway?

When developing a localized pricing strategy, it's essential to consider how some markets are more price-sensitive than others.

Don't set and forget pricing! Test to find the optimal price point and track metrics.

✍️ Parisa Wang Saw An Additional $32K In 30 Days With Instant Audiences. Here’s How To Copy Their Success

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So, they teamed up with Instant, looking to:

• 🛍️ Identify and capture more shoppers
• 📨 Trigger more abandonment flows
• 💵 Recover lost revenue

The results? A 14.8x return on investment. They saw $32K in incremental revenue in the first 30 days. 📈

Want to see how you can reconnect with high-intent visitors and copy their strategy?

📦 Your Daily Tariff Check-In

Whether it’s a minor tweak or a major shift, we’ll keep you posted on the latest tariff changes—so you’re always in the know. 

June 26, 2025 update:

• Clothing Prices Are Rising Due To Tariffs
  
  • Daniel Ervér, the chief executive of the Swedish retailer H&M, shares, "Different competitors are acting in different ways. Some more aggressively [increasing prices] and some more cautiously."
    
  • He admits it is unclear how the market will develop as this is a "fast-moving situation," and the Trump administration has changed tariffs on several occasions.
    
  • Ervér said, "The customer is very price sensitive" and H&M will need to rely more heavily on discounts compared to last year to encourage shoppers to make a purchase.

🎧 How Gatsby’s Green Light Explains Gen Z Consumer Trends

In the latest episode of Ad-venturous, Aves dives into one of the greatest novels of all time, The Great Gatsby, to unpack Gen Z’s consumer psychology. 

Learn why endless scrolling, fast fashion, and influencer signals tell us brand strategy must evolve.

Aves explains Gen Z isn’t chasing true individuality but rather the illusion of individuality. 

In this episode, we dive into:

• Gen Z Spectators: Rather than being culture-makers, Gen Z are more passive (like Nick in The Great Gatsby), they observe culture but don’t drive it.
  
• Advertising overload = fatigue: Gen Z view modern ads are omnipresent but hollow.
  
• Manufactured authenticity wins: Brands must signal authenticity convincingly—even if it’s performative.

“Authenticity is performed, not felt. Brands that can signal it quickly win more than those that own it deeply.”

• Favoring product speed over marketing fluff: Today’s success depends on rapid iteration and relevance.
  

👉 Listen to the full episode with Aves here.

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Have you tested this TikTok ad type? 

Secret filming style ads are taking off. 

Position your camera so it looks like the subject is unaware they are being filmed to hook in audiences.

Can't view the image? Click here

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Have you heard our latest podcasts?

• 😀 TWBERP 39: How To Keep Your Customers Long Term 
• 🚴 Bookstrapping Revel Bikes from Innovation to Acquisition 
• 🔒 AKNF 518: CCPA/CPRA Explained For Ecomm Tech Managers  
• 🧓 Ad-venturous 6: All About Baby Boomers 
• 📧 TWBERP 38: Stop Double Tapping Unengaged Addresses 
• 🍘 How Back To Nature Repositioned Away From ‘Plant-Based’

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DTC Newsletter is written by Rebecca Knight and Frances Du. Edited by Eric Dyck.

Please note that items in this newsletter marked with * contain sponsored content.