Core Viewpoint - The recent salary reduction incident at Peak has sparked significant public outcry, highlighting a shift in consumer behavior where the treatment of employees is now a critical factor in brand trust and purchasing decisions [1][4][5] Summary by Sections Incident Overview - The salary reduction at Peak was disclosed in mid-September, with reports indicating a reduction of 10%-50% for employees at headquarters and some subsidiaries, while store employees were not affected [1][3] - The company reported a loss of 130 million yuan in the first seven months of the year, which was cited as the reason for the salary adjustments [3] Internal and External Reactions - Peak's management emphasized that the salary cuts were primarily aimed at loss-making departments and high-salary positions, with an overall reduction of less than 10% [3] - Despite claims of employee understanding and support, over 200 employees submitted objections to the salary cuts, and some reported not receiving their salaries after refusing the cuts [3][4] Changing Consumer Dynamics - The incident reflects a broader trend where consumers, particularly younger ones, are increasingly evaluating brands based on how they treat their employees, shifting from traditional product-focused assessments to a more holistic view of corporate ethics [4][5][8] - The rise of "avoidance culture" among consumers indicates that purchasing decisions are now influenced by a company's treatment of its workforce, with social media amplifying these sentiments [5][8] Implications for Brand Management - The evolving public perception of brands necessitates a reevaluation of corporate communication strategies, as traditional cost-cutting narratives may no longer resonate in today's social media landscape [9] - Brands must navigate the delicate balance between operational efficiency and maintaining employee welfare to preserve public trust, as consumer expectations continue to evolve [9]