Several Ways for Industrial Gases to Seize Market Share

Since their inception, industrial gas projects have been plagued by issues such as intense competition, customer poaching, and low-price sales. The number of industrial gas companies in a central city is limited, while the number of industrial enterprises remains constant. How can these companies rapidly expand into new markets, seize market leadership, and forge their own unique business paths? Currently, the problem of product homogenization and cutthroat price competition among industrial gas enterprises is particularly pronounced—largely due to unreasonable business management practices and suboptimal market strategies. As the industry reaches its ceiling and the market becomes saturated, fierce competition inevitably leads to price wars during the customer development process. Beyond price competition, companies lack better solutions to win customers’ favor. Drawing on the unique characteristics of industrial gases and the inherent features of the industry itself, we have designed a marketing model that breaks through the industry’s bottlenecks.

Market Pain Point Analysis: The marketing approach adopted by most industrial gas companies in China is as follows: investing in plant construction, hiring employees, and managing operations independently. This family-run business model is currently widespread. Since each company’s management has industry-specific limitations on its marketing strategies, it’s impossible for these companies to develop marketing models that differ significantly from those of their competitors. The operational mechanisms of the industry are primarily driven by factors such as scale, cost, and talent. When a company reaches a sufficiently large size, its advantages in raw material procurement, production, operations, and financing become strikingly evident. However, small- and medium-sized gas companies, due to their limited resources, cannot enjoy the same advantage of low production costs.

The design of marketing models for industrial gas companies cannot break through the industry’s inherent limitations. No matter how much we think about leveraging the internet or adopting other marketing approaches, the solutions to problems will always remain confined within the industry itself. Due to bottlenecks and internal constraints faced by enterprises—such as limitations in product R&D and a lack of marketing expertise in corporate management—business development is often hindered.

We expand our industrial gas market through four steps: 1. Reducing operational costs for businesses; 2. Lowering gas consumption costs for target customers and providing businesses with more value-added services; 3. Accelerating the growth of corporate clients: Our own sales representatives approach businesses, yet these companies often aren't enthusiastic about our services. Moreover, when working with their current gas suppliers, businesses are bound by contractual obligations and other emotional ties. At this stage, aside from lowering product prices, our sales reps have few other effective ways to engage with these businesses; 4. Alleviating financial pressures on businesses themselves: Our gas suppliers typically prefer to produce gas themselves and then deliver it directly to customers, who pay only after they’ve used up their supply. Sometimes, businesses fail to make timely payments, putting significant financial strain on them. Therefore, by offering mutually beneficial incentives, we can help businesses avoid potential risks.

When a business is merely an individual proprietorship, its growth is inevitably constrained, because the company’s mindset always revolves around simply profiting from the price difference between the product’s purchase and sale. This mindset will gradually erode the company’s competitive edge as e-commerce continues to develop. Moreover, once large capital enters the picture, the damage inflicted on the company itself can be substantial. Based on our experience over the years, whenever major international corporations enter the Chinese market, our competitive advantages immediately diminish, leading to significant losses for our clients. However, once our businesses cease being independent entities and form industry alliances, our strengths are instantly amplified many times over, greatly enhancing our competitiveness.