“The Italian businessmen were in Egypt as both representatives of their companies and, as well as, their membership in the Italian fashion federation. Norsa is board member of the Italian Chamber of Italian Fashion and Zegna is president of the federation which combines the former “Italian Fashion System” and the Italian Textile Association. The Italian CEOs scouted Egypt’s potential as a retail market for luxury Italian products at a time when the Italian apparel industry is facing an influx of Chinese products. Italian entrepreneurs are seeking to open up new markets for their goods after their own market has become inundated with Chinese products, since quotas were lifted in January 2005 .Egyptian manufacturers, for their part, suggested that Egypt could become a part of the Italian fashion production chain by means of outsourcing. A number of local manufacturers are already involved in outsourcing for major European and US brand names. Egypt is also targeting outsourcing for the higher-end luxury items. “Why produce cheap goods, when we can produce luxury items?” said Alaa Arafa, chairman of Arafa Holding, a major Egyptian textiles and garments maker and exporter .Valentino manufactures some 100,000 men’s suits annually in Egypt, out of 30 million pieces produced by the group. This is Valentino’s only outsourcing operation outside of Italy .