Core Viewpoint - The controversy surrounding Jun Ji-hyun's new drama "The Storm Circle" has led to major luxury brands like Louis Vuitton, La Mer, and Piaget severing ties with her due to perceived cultural insensitivity and negative portrayal of China [2][4][5] Brand Impact - Jun Ji-hyun has built significant commercial value in the Chinese market, having been a brand ambassador for top luxury brands, including Piaget and La Mer, which have now removed her from their promotional materials [4] - The swift actions taken by brands to distance themselves from Jun Ji-hyun reflect the importance of maintaining a positive brand image in the Chinese market, which contributes significantly to global revenues [4][5] Cultural Sensitivity - The backlash against "The Storm Circle" highlights the critical need for cultural sensitivity in global media productions, as the portrayal of China in the series has been deemed offensive by Chinese audiences [3][5] - The incident underscores the broader implications of cultural, commercial, and political interactions in a globalized environment, where local sensitivities must be acknowledged by all stakeholders in the industry [5]

Core Viewpoint - The luxury brand Burberry has reported a significant decline in sales and profits for the fiscal year ending March 29, 2025, prompting a strategic restructuring plan to improve its financial performance and brand image [2][4][5]. Financial Performance - Burberry's sales decreased by 17% year-on-year to £246 million, with adjusted operating profit falling to £26 million, a 94% decline [4]. - The company recorded an operating loss of £3 million and a pre-tax loss of £66 million, compared to a sales revenue of £2.968 billion and a profit of £418 million in the previous year [4]. Strategic Initiatives - New CEO Josh Schulman has committed to accelerating the "Burberry Forward" transformation plan, focusing on enhancing brand expression and restoring sales, profit margins, and cash flow while controlling costs [5]. - The company plans to lay off approximately 1,700 employees, representing about 18% of its workforce, to achieve a cost-saving target of £60 million by 2027, supplementing a previously announced £40 million cost-saving plan [7]. Market Response - Despite the ongoing performance challenges, Burberry received a positive boost in the capital market, with Citigroup upgrading its stock rating to "Buy" for the first time in 17 years, indicating a recovery in investor confidence [9]. - Burberry's stock price rose by 9% following the earnings report, reflecting optimism about the company's long-term transformation potential [9].