1. Fierce market competition: Chengdu Chongzhou Distillery may be affected by fierce market competition in liquor industry, including sales pressure from other brands and enterprises. It is impossible to maintain a dominant position and gain enough market share in this highly competitive environment, which leads to a decline in sales and financial difficulties.
2. Poor management: The successful operation of wineries requires effective management and good strategic decisions. There are serious mistakes in the internal management of Chongzhou Distillery in Chengdu, resulting in low production efficiency or lack of innovation, which leads to the break of capital chain, reduced profits and problems in the overall operation.