Following in the footstepsof mass-market fashion brands, luxury labels are increasingly moving productionto China."About 20 percent of Prada's collections — which range from bags and shoes toclothes for men and women — are made in China,"revealed the Wall Street Journal as the Italian high-end label made its IPOFriday on the Hong Kong stock market. But asconsumers equate labels that read "Made in Italy"or "Made in France" as anelite symbol of prestige that means quality, will they turn their noses atluxury brands that are creating goods in China? While China makes sense as it offers cheaper and faster mass productionthan Europe as designer goods face lower revenue, the verdict is out on whether that means the same qualitycraftsmanship as items made in Europe.

Some argue that Chinais capable of making the same quality of goods that Europemakes. "These shoes are high-end brands," Dorthy Goh, manager of a shoe factoryin Dongguan, China, told Marketplace. "This showsthat China'sfactories are capable of making high-end shoes." The Wall Street Journalreports that Prada designer Miuccia Prada agrees. "Sooner or later, itwill happen to everyone because [Chinese manufacturing] is so good," Prada told the newspaper.

Billionaire investor Warren Buffett even thinksso. "I threw away the rest of my suits," declared Buffett in a 2007 video,proudly acknowledging his affinity towards Chinese suit maker Trands, accordingto the Asian Age.

But perhaps there is a way to achieve European quality at less expensivecosts in China. "There may be some brands that can make this transitionsuccessfully," luxury brand consultant Janice Winter said to ARTINFO. "One way to assure the consistency of quality may be by installing European training and management 'oversight' at these new facilities."

Interestingly, luxury brands are increasinglygetting away with keeping a "Made in Italy"label by manufacturing parts in China,then assembling the product in Italy."Today, many of these brands will do some part of the operation here in China,and they will finish the shoes in Italy to be allowed to still put 'Madein Italy,' even if it is not made in Italy," said chemical supplierGiorgio Bonacarso, who sells to Chinese shoe factories that make shoes forItalian brands, reports Marketplace.

Luxury expert Carol Brodie, founder of CarolBrodie and Co. believes that for an item to be labeled "luxury," it must beproduced in small numbers at a high quality. "The word luxury implies quality, rarity, handcraftsmanship. Any mass-produced product created in factories by the hundredsor thousands no longer constitute as true luxury," Brodie told ARTINFO."Perhaps 'masstige' may be a better way to describe these products. There arevery few true luxury brands; however there are many brands who sell expensiveproducts."

One luxury goods expert believes that when a luxury label delocalizes its production that signifies a move away from high-end, exclusive goods. "Now this move from Prada indicates they are slowly moving away from a luxury strategy. They are engaging more in a fashion strategy, just asBurberry who has almost totally delocalized its production," luxury goods expert Jean-Noël Kapferer, author of "The Luxury Strategy: Break the Rules of Marketing to Build Luxury Brands" told ARTINFO. In fashionone must delocalize to reduce as much as possible the cost of goods, the manufacturing costs since soon one will have to slash the margins during the sales and supersales.

Fashion editor Jay Singleton thinks that itemsthat come with labels declaring they were produced in Europe signify a qualitythat goods made in Chinalack. "'Made in France' hasa cachet that 'Made in China'does not," fashion editor Jay Singleton said. "When you think ofproducts made in China,you automatically think cheap."

However, the move away from Europewon't deter Singleton or others from continuing to buy luxury labels. "Butpeople will still buy their Prada bags anyway," mused Singleton. "I know Iwill." If that's indeed the case, consumers will surely see more and morehigh-end brands moving production from Europe to China — with labels that proudly declare, "Made in China."