Not 100% true. With $1200 it has wider market reach than $1500. There are still people spend $1500 for a floor lamp, but 100% it will be fewer if it was priced at $1200.
Also pricing it too high means higher chance a clone will exist, because they can copy literally 1:1 and price it a little lower.
Another thing in China is they move fast. As long as you have enough money, the time to market is insanely short.