Domestic designers had a stronger showing at this year's Shanghai International Fashion Week as the world's biggest textiles producing country faces possible export restraints on its low-value products and struggles to develop more branded garments.

A shift in focus to higher value products is needed to combat the ravages of potentially reimposed quotas on profits.

A record 10 fashion shows have been arranged for domestic designers in the fashion-conscious city during the festival, which opened on Tuesday and runs until April 28.

Well-known international brands have hogged the limelight in the past, but at the 11th Fashion Week Chinese designers attracted a lot more attention, Shan Guoyan, an official from the organizing committee, told China Daily yesterday.

"Many overseas investors have expressed their appreciation for these designs and believe they have large market potential," said Shan.

Fashion Week is the only fashion and textiles industry event supported by the Shanghai municipal government.

This year there was 30 per cent more display space, taking the total to 46,000 square metres, and the number of companies attending rose from 900 to 1,100.

The industry's increasing awareness of branding is behind the special attention paid to Chinese designers this year, Zhang Weiyuan, a professor from Donghua University in Shanghai, told China Daily.

Although China is a huge textiles and apparel exporter, most companies get only small amounts from the manufacturing of exported products, Zhang said. He added that companies with their own branding have much higher returns.

The need for producing branded and high-valued clothes is especially pressing as more countries criticize China's cheap textiles after the trade quota was removed in January, Zhang said.

The European Commission unveiled guidelines on April 7 stating that if Chinese exports rise 10 per cent above 2004 levels an EU investigation will be triggered as well as informal talks with China on possible protectionist measures.

The United States announced on April 4 it had started looking into whether quotas should be re-imposed on three categories of Chinese textiles and apparel exports.

An official from the Shanghai Silk Group said branded garments could help Chinese companies earn more even if export volume reduced.

The group's women's clothing brand Lily will be sold in medium and high-level department stores in France from June.

"We have lowered our export target from US$700 million last year to US$500 million this year, but we believe profits will be higher," said the official who preferred not to be named.

(China Daily April 18, 2005)