China pulls in foreign designers in bid to build up own brands

Guangzhou

WHEN evaporating profit margins prompted China's Zhejiang Willing Foreign Trading Co to launch its own brand for yoga wear last year, it spurned homegrown talent and turned to a French freelance designer.

"Chinese designers just don't have good taste for foreign markets," said Zhang Tao, assistant manager at the Hangzhou-based company. "Chinese businesses have been good at manufacturing but now we have to change our mindset. Brands are the future."

After years of rising wages eroded its position as the world's bargain manufacturer, China is striving to build its own brands and improve product quality and design. Those advances are crucial to maintaining the high growth needed to make the leap from middle- to high-income status - a jump only five economies have managed, including Taiwan, Hong Kong and Singapore, acc…