Strategic design risk

13 June, 2025

Branding
Hero

Product design determines how a brand is perceived, whether accepted, rejected, or contested by its market. Beyond function and aesthetics, design elements carry cultural, political, and symbolic weight. The Baby Three plush toy incident in Vietnam during early 2025 illustrates the reputational and financial consequences of overlooking this responsibility.

The toy’s facial motif, interpreted by consumers as resembling China’s "nine-dash line," triggered backlash due to its perceived political connotation. Although unintended, the symbol was widely seen as undermining Vietnam’s territorial integrity. This led to product recalls, severed partnerships, and nationwide consumer boycotts. The incident confirms that design decisions carry tangible risk when symbolic sensitivity is not actively managed.


Signals

Design communicates meaning. Shapes, symbols, and motifs are not universally neutral. Their interpretation shifts based on the political and cultural context in which they are encountered. When design unintentionally mirrors disputed imagery, as it did in the Baby Three case, the consequences are swift and damaging.

Design teams must screen visual elements for symbolic misalignment. Decorative intentions in one market may be construed as political provocation in another. Symbol intelligence must be embedded in the design approval process.

Two Baby Three plush toys in pink costumes, including the controversial "Town Bunny Ver. 2" edition, held side by side indoors.

Cultural

Brands must localise interpretation protocols for every market. Cultural semiotics, the meaning assigned to symbols within a specific society, must guide the design cycle. Without it, visual cues are at risk of being misread, leading to accusations of ideological bias or cultural insensitivity.

In Vietnam, where sovereignty is politically and socially salient, a disputed symbol on a children’s toy was considered unacceptable. Cultural alignment requires region-specific consultation and embedded review before finalisation.


Control

Product design oversight must be systematic. Unintentional imagery can trigger regulatory responses, reputational harm, and commercial disruption. To prevent this, brands should operationalise safeguards including:

  • Symbol screening during initial concept development
  • Legal and cultural advisory reviews for regional sensitivities
  • Pre-market consumer testing for symbolic interpretation
  • Multi-departmental design approval workflows
  • Continuous geopolitical monitoring tied to design planning

These controls ensure products meet sensitivity standards before market entry.


Impact

Following the Baby Three controversy, sales in Vietnam collapsed. Products were discounted across all price tiers, from standard units originally priced between 500,000 to 980,000 VND (~US$20 to US$40), to collector sets ranging from 1,500,000 to over 2,000,000 VND (~US$60 to US$80), and premium editions exceeding US$2,000. Even with price reductions as low as 199,000 VND (~US$8), demand did not recover.

Consumers associated the product with a violation of national values. This perception was reinforced by national media, online influencers, and mass retailer withdrawals. Despite clarifying the original design intent, consumer trust did not return. The incident transitioned from a product issue to a brand crisis.


Perception

Ownership of the toy was perceived as unpatriotic. Public sentiment, shaped by a strong national identity, deemed the product incompatible with domestic expectations. This highlights how symbolic misinterpretation can discredit an entire brand offering.

In jurisdictions affected by territorial or ideological disputes, acceptance is conditional on the perceived neutrality of product design. Baby Three’s inability to recover credibility illustrates the stakes of cultural oversight failure.

Two Baby Three plush toys in pink animal costumes, including one featuring a red facial motif that sparked controversy over resemblance to the nine-dash line.

Prevention

To avoid similar incidents, brands must embed symbolic and geopolitical awareness throughout product development. The following structures are essential:

Governance

Organisations must formalise visual compliance protocols through written internal policies. These should include:

  • Prohibited symbols by jurisdiction, with visual examples
  • Escalation procedures for ambiguous or novel motifs
  • Mandatory inclusion of risk review during every design sprint
  • Enforcement mechanisms, including design rejection or rework mandates

These policies should be applicable across product lines and supported by executive-level endorsement to ensure consistency and accountability.

Panels

Establish permanent advisory panels comprising regional cultural analysts, political consultants, and compliance officers. Their responsibilities should include:

  • Reviewing product visuals for geopolitical, religious, and cultural sensitivity
  • Flagging motifs that may conflict with national narratives or regulatory boundaries
  • Advising on alternative design treatments or neutral substitutions
  • Documenting rationale for each visual approval or rejection

Panel outputs should be recorded in design governance documentation for future audit and reference.

Vetting

Integrate visual vetting into all pre-market workflows. Key requirements include:

  • Mandatory sign-off from brand, legal, compliance, and regional operations
  • Use of checklists covering symbolism, alignment with local norms, and brand tone
  • Blocking mechanisms that prevent unvetted designs from advancing to prototyping or production
  • Cross-team visibility into design decisions and objections

This approach ensures all stakeholders understand and assume shared responsibility for final outputs.

Libraries

Develop and maintain centralised, access-controlled databases cataloguing politically and culturally sensitive visual elements by region. These libraries should:

  • Include image references, geographic sensitivities, and commentary on meaning
  • Be updated quarterly in collaboration with external intelligence partners
  • Serve as a mandatory checkpoint during design ideation and approvals
  • Support training and onboarding of creative and marketing staff

The database should be treated as an operational asset and integrated into digital asset management systems.

Testing

Conduct controlled visual interpretation testing in high-sensitivity jurisdictions before any large-scale production or promotional campaign. This should involve:

  • Focus groups with demographic and cultural diversity
  • A/B testing of design variations for comparative sentiment
  • Qualitative data collection on perceived symbolism, alignment, or dissonance
  • Formalised reporting protocols to feed back into design adjustments

Testing outcomes should inform launch go/no-go decisions and guide necessary revisions.


Red paper lantern with a bold black Chinese character, illuminated against a dark background.

Integration

Brands should also establish long-term safeguards:

  • Incorporate symbolic analysis in enterprise risk reporting
  • Use geopolitical forecasts in design planning
  • Train creative teams in cultural compliance
  • Review designs annually for evolving symbolic risks
  • Document design rationales for audit and defence

This transforms design from a creative function into a monitored governance asset aligned with brand protection.


Trust

Product design is integral to public trust. Consumers assess brands by how their products reflect cultural, political, and ethical alignment. When a product violates these expectations, brand loyalty deteriorates rapidly.

In the Baby Three case, public rejection became irreversible. Retailers and influencers withdrew support, and price incentives failed to revive sales. Consumer trust, once eroded by perceived offence, could not be repaired through post-crisis explanations alone.


The Baby Three incident demonstrates that product design must be treated as a strategic function with direct regulatory and reputational implications. In politically or culturally sensitive regions, unreviewed visual elements can obstruct market entry, damage consumer confidence, and result in commercial disruption. Design oversight must prioritise symbolic accuracy, contextual awareness, and formal risk controls. Aesthetic value alone is insufficient when symbolic misalignment can turn a product into a liability.