North Korea outsources product design to China for competitive edge

In North Korea, a shift has occurred as the country increasingly relies on Chinese firms for the design of packaging and labels for various products, including premium food items. This change has been driven by local challenges, such as inadequate domestic power supply, resulting in poor-quality printing, and a lack of sophisticated design capabilities. Recent information reveals that factories in North Korea, particularly those in North Pyongan province, are commissioning design work through trading companies based in China’s Liaoning province, with a focus on enhancing the visual appeal of products like ramen, tea, and ginseng. These products are delivered with packaging strikingly similar to popular South Korean brands, highlighting the trend of imitating foreign designs to bolster market competitiveness. In the past, this outsourcing practice primarily pertained to pharmaceutical and health supplement packaging, but there has been a marked expansion into food products and everyday items. Reports indicate that the authorities in North Korea are accepting this outsourcing as a practical approach to improve product competitiveness amidst ongoing economic constraints. This strategy seeks to cater to the expectations of consumers who are increasingly exposed to foreign goods and brands. Despite the improvements in packaging aesthetics, feedback from residents in Sinuiju City, where much of this new packaging is being showcased, reveals dissatisfaction with the actual quality of the products. Observers note that while the outer presentation has become more attractive, the contents remain largely unchanged, leading to a perception that the enhancements are merely superficial and serve as a facade for ongoing issues in local production quality. Residents have expressed their disappointment, stating that only the packaging has improved while the actual products are perceived to lack the quality consumers expect. This divergence between the ambitions of North Korean authorities and the realities perceived by the populace exemplifies the ongoing struggle the country faces in balancing its self-reliance policy with the practicalities of economic conditions and consumer expectations. Analysts believe that the use of Chinese-designed packaging is not just a technical necessity but also a strategy adopted by the authorities to portray an image of advancement and modernization amidst external scrutiny. This situation encapsulates the ongoing challenges and contradictions faced by North Korea as it navigates domestic and international contexts to maintain competitiveness in an increasingly connected world.