BY JANE CRYSTAL , I A on g famous for a relaxed lifestyle and extremist trend setting, California has never been known as a haven for young up-and-coming fashion designers. Not until now, that is. Until recently, the West Coast was a manufacturing base for swimwear and junior sportswear companies. Now a renaissance of design talent is emerging. California's design community, which stretches from San Francisco to San Diego, is finally coming into its own. Here is a sampling of six of the bright new stars on the California fashion horizon: DAAD Foremost among the young and avant-garde West Coast designers is DAAD, a San Francisco-based company with a novel approach to sportswear. On the creative end is designer May Dajani; the firm's business is managed by sister Rita Dajani. Raised in Brazil and extremely well traveled, the Dajani sisters bring an im- pressive international air and cosmopolitan flavor to DAAD, which stands for Design and Abel Villarreal shows a young, baby-doll style —high dress waisted, with a short flaring skirt and black leather straps.