"Chinese companies have already become major players in the global technology and internet industries. It is just a matter of time before a Chinese designer reaches that level in the global creative industry," said Chen.

During a forum co-organized by the Business of France and Bailian Group which took place on the sidelines of SFW, Pascal Morand, president of the French Federation de la Haute Couture, noted that Chinese designers must first ind their identities if they are to succeed on the world stage.

As young consumers today are more motivated by unique styles that reflect their individuality instead of big name brands, working with independent Chinese designers could also help draw more traffic to physical stores and in turn revive the lagging brick and mortar retail segment, said Chen.

The designers sponsored by the foundation would be given an option to sell their creations at the thousands of stores across the country operated by Bailian Group. Chen added that the group expects the sales of fashion products by designers backed by the foundation to amount to about 4.5 billion yuan by 2022.

With more than 4,700 sales points including department stores, outlets and supermarkets in 200 cities in China, the State-owned conglomerate operates nearly two-thirds of the shopping malls in Shanghai. Last year, sales by Bailian Group accounted for 28 percent of the total in Shanghai's retail industry.

"As a dominant player in the retail industry, we can help these designers showcase their creations at our stores which are located in prime locations," he said.

"E-commerce has drawn many customers away from physical shops. It's time we brought them back."

As part of efforts to wrest market share back from e-commerce competitors, the group is currently redesigning its shopping spaces to appeal to a younger clientele. In September, it launched The Balancing, a multibrand store similar in concept to Lane Crawford, at one of its malls in Shanghai. In addition, the group has hired a small team of fashion buyers to source for the latest creations by designers all over the world.