"The label 'Made in China' is still, unfortunately, synonymous with 'cheap and poor quality'," said Michel Phan, LVMH-chaired professor of marketing at French business school ESSEC's Singapore campus.

"High-end fashion houses are what they are today because they design and produce in Europe (France, Italy, UK or Spain). Those countries are synonymous with quality and attention to detail."

Even ‘Made in Italy’ is not enough for Versace, which says all its clothes carry a label stating the item was produced at a Versace factory in Italy.

CHINA ADVANTAGE

Ho's designs might be European but his brand is Asian and he is trying to use this to his advantage by applying his knowledge of the Chinese garment industry to make high-quality gowns at prices that are impossibly low for Europe design houses.

Ho, who worked for his parents' knitwear company before setting up on his own, says he has complete control over quality because his garments are manufactured in his factory in Shenzhen, across the border from Hong Kong.

"We can control price because we own our factory in China," said Ho.

"It's very painful in China for American and European designers because they have to outsource and so they have to work hard to control quality. If you subcontract in China people might copy your designs," he added.

Manufacturing in China is tempting for Western fashion companies as they struggle to keep up with costs.

British fashion group Burberry last year started making polo shirts there, closing a plant in Wales which it said was no longer commercially viable -- a move that triggered protests outside Burberry stores in Europe and the United States.

... contd.