This 95:5 cotton-Lycra camisole and panty set from Quanzhou Suntex has elastic, lace and button trimmings. The set is available in sizes S to XL and in buyer-specified colors.

A Strategic location and an established supply chain are boosting upscale manufacture in this city of Fujian province.

Quanzhou's proximity to Taiwan and the presence of ancillary industries are helping suppliers move into high-value production of men's and women's underwear.

Accounting for approximately 10 percent of the mainland China's exports in the line, this city in Fujian is located directly across the strait to Taiwan. This has encouraged Taiwan enterprises to invest in Quanzhou's underwear factories or relocate production facilities there.

At present, about 10 percent of Quanzhou's 400 underwear manufacturers are large, Taiwan-invested enterprises. The rest are small and midsize locally owned companies, many of which are based in the Shenhu area. These suppliers exported nearly $1.7 billion worth of men's and women's underwear in 2007, up by 15 percent.

Investment from Taiwan has not only helped to boost exports but has also paved the way for technology transfers. The island is particularly strong in the research and development of synthetic-fiber and functional fabric, textiles that are now being used in abundance in Quanzhou.

Suppliers also benefit from an established supply chain network. Manufacturers have convenient access to raw materials, while those that do not have direct export capability can ship by way of the city's numerous trading companies. In addition, various local governments provide R&D training to the suppliers. The county-level city of Shishi, for example, arranges private training sessions for the manufacturers with the Shanghai Fudan University and the Economic College of Xiamen University.

This, along with the technology from Taiwan-based investors, has helped suppliers shift to high-value manufacture.

Apart from these steps, companies are hiring designers or working with R&D organizations and purchasing advanced equipment to create upscale models.

Companies are now offering briefs, boxers, tanks tops, sleeveless shirts and panties in bamboo fiber and modal. In fact, while companies are expecting volume shipments to drop by year-end, export sales are forecast to increase as a result of the upscale shift.

Underwear suppliers in Quanzhou offer mainly midrange designs made of textiles that are compliant with the Oeko-Tex Standard 100. They also send samples to SGS or Intertek to test for azo content, shrinkage against washing, expansion and color fastness.

The suppliers, however, are increasing production of high-end versions, which now account for up to 40 percent of output at some companies.

Among the suppliers interviewed for this report, Baichuan Dress & Weaving Co. Ltd Quanzhou offers boxers, briefs and tank tops. High-end models in printed pure cotton make up 30 percent of shipments. The company exports mainly to Europe.

High-end designs constitute 40 percent of Quanzhou Kaiwei Garments Co. Ltd's exports. These come mainly in soft, breathable and hypoallergenic bamboo fiber. The rest are midrange designs in pure cotton or a blend of cotton and spandex. Many of the products have multicolor printed patterns or lace trimming.

About 65 percent of the fabric is made in-house. Five percent is purchased in Hong Kong, Taiwan or South Korea and the rest is sourced from the provinces of Guangdong and Zhejiang.

The company's factory is equipped with several cutting and sewing machines and adopts an advanced type of production system from Japan.

The supplier exports to the EU, Canada, the US and Australia. Hanes, Gap and Auchen are among the major clients.

As with Quanzhou Kaiwei, Queen International Textile Co. Ltd adopts bamboo fiber in releases. In addition, the company employs modal and blends X-silver in designs. The latter is a type of functional fiber said to be anti-bacterial, deodorizing and UV-resistant. All fabric is made in-house.

Most of the company's equipment is imported from Japan, including a special type of machine used to process X-silver fiber.

Quanzhou Great Garments Co. Ltd specializes in seamless underwear, including models for use during athletic activities. Modal is commonly adopted in designs.

Most of the products at Quanzhou Leader Garments Co. Ltd are midrange designs that come in a blend of 70 percent cotton, 25 percent nylon and 5 percent spandex. The company offers bras, briefs, boxer shorts, T-shirts and tank tops.

Midrange models also dominate production at Quanzhou Suntex Garments Co. Ltd. The lingerie sets, boxers, briefs, panties, tank tops and camisoles adopt pure cotton or a blend of cotton and spandex.

A selection of men's and women's underwear from Quanzhou, China

Baichuan Dress & Weaving Co. Ltd

Model: Men's Boxers
Minimum order: 5,000 pairs per color
Delivery time: 50 days
Price: $0.80
Description: 100% cotton; 160g; covered waistband; all sizes available

Model: GM030
Minimum order: 6,000 pairs
Delivery time: 60 days
Price: $1.50
Description: Men's boxer briefs; 95:5 cotton-Lycra; 180gsm; allover printed; 3cm jacquard elastic trimming; sizes S to XL; packed one piece with hanger and hangtag

Model: KW-4679
Minimum order: 1,500 pieces per color
Delivery time: 45 days
Description: Men's A-shirt; 95:5 cotton-spandex; 170g

Model: 07083
Minimum order: 1,000 dozen
Delivery time: 60 days
Price: $1.60
Description: Camisole; 70:25:5 cotton-nylon-spandex; 170gsm; allover printed; lace-trimmed V-neck; ribbon trimming on straps; all colors available; sizes S to XL; price excludes packaging

Model: S03
Minimum order: 2,400 sets
Delivery time: 50 days
Description: Camisole and T-string set; 88:12 polyester-spandex lace; sizes S to XL; packed one set in PVC bag

Model: THT-XWPT-002
Minimum order: 100 dozen pairs
Delivery time: 55 days
Description: Women's panties; 90:5:5 nylon-spandex-X-silver; cotton-lined crotch; sizes 5 to 8; anti-bacterial, deodorizing, anti-static functions; center back seam for natural shaping; sides measure 2.5 inches from waistband to top of leg opening; 0.375-inch waist and leg elasticized binding; full bottom coverage