The best-known French and Italian brands can start making a handbag or shoe in China or Turkey and bring it back home to be finished and gain the "Made in France" or "Made in Italy" tag.

But designers in Paris and Milan have the benefit of commercial networks in the luxury goods trade developed over centuries and still thriving local artisanship, that is often protected by the biggest conglomerates. PPR's Gucci Group, for example, trains the artisans making its Bottega Veneta signature woven leather bags.

By contrast, designers and luxury industry executives say Britain is jeopardizing the growth of its talent by taking the move to offshore too far.

Among Britain's most acclaimed young designers, Christopher Kane is one who is suffering from the lack of nearby manufacturing capacity.

Even with his credentials -- he was partially sponsored by Donatella Versace through his master's degree -- Kane said he has difficulty finding anyone willing to make his clothes.