Many of my friends are having babies and finding nice presents isn't easy. Just like for adults, buying and affordable baby/kids clothes in Shanghai is a bit of a challenge (if money is no object, Jacadi recently opened in Reel Mall and Bonpoint has a store in Plaza 66).There is the famous children clothes market on Pu An Lu but not much gift-able choices there.
I like to check out Rouge Baise Elise for some hand-embroided baby clothes and bedlinen or these few Taobao shops:
Dave & Bella
[Taobao is a goldmine but it can be very time consuming so I'll try to share some links in my "Taobao Find" series. If you know any good shops, please do share! And for those who are not familiar with how to use Taobao, check this guide by Cityweekend.]