The more romantically-inclined fashion historians have claimed in a variety of books and articles that our current economic woes could have been predicted by the trend of long skirts over this past season. As skirt hems went up so too did economic heights, but now as skirts drop the markets follow.

Of course, this does not always prove true. (And, also, it is silly.) The relationship between fashion, design and what goes on outside the fashion world is vastly more complicated and interesting.

As the US financial market struggles more and more – how many banks will have to be rescued before there are no more banks? – art, design, fashion have had to adjust to the struggles all around them.

Though they may be artists, designers still need to make money. But how to do that when even their loyal customers are feeling the credit crunch?

At Fashion Week this past February, it seemed designers of all sizes were cutting corners and cutting back. Cheaper fabrics, plain colors and basic designs without as many extra (expensive) adornments were the standard. Though there were still luxury items to be found, which serve an essential niche, even those designers that typically focus on extravagance pulled back.

Most importantly, though February Fashion Week showcases Fall/Winter lines for the distant following season, this year the looks were distinctly summery or season-less. Part of the runway’s charm has always been their disregard for the logic of current weather patterns, but the economic hard-times have created a forced practicality in the tents. If customers don’t have much money to spend, they need a good reason to spend it. Are people going to buy fall clothes in March? No. Are people more likely to buy practical(ish) clothes that could be worn in any season? Yes.

The more traditional houses cannot afford to alienate their core constituency: preppy, middle-aged, trust fund women. And these women are not looking for anything crazy. They especially don’t want to take risks right now. And the more eveningwear-focused designers, like Carolina Herrera and Oscar de la Renta, presented just that: traditional, elegant, fur-lined, jewel-encrusted gowns. Though the wealthy may be suffering from the recession, they are certainly suffering less.

“Remember, when our customers tighten their belts, it’s generally ostrich or alligator,” said Burt Tansky, CEO of Neiman Marcus.

And he may be right. Hermes stock continues to rise, as does that of jewelers like De Beers. Apparently, there’s no bad time for diamonds.

But what people in the Hamptons wear hasn’t changed for decades, to expect it to now would be misguided. Where the real change is coming, and what has taken a beating with the financial woes of the world, are the clothes actual people, stylish people, wear on the streets, to the bars, in the clubs.

But, doesn’t adversity breed creativity?

With all the practical, sensible, plain clothes on the runways and in the high-end stores, there is room for experimentation right now. People crave it!

And there’s an up-side, or at least not a down-side, to the US’s financial troubles. With the dollar doing so poorly against European currencies, buying from foreign designers is more expensive than ever and many stores’ buyers aren’t even making the same trips they use to to Paris, London and Milan. (No, wait, there’s really an upside.) This means that the market is open and ready for some hot, young, hip American designers. The true American sartorialists are looking for cheap and interesting clothes anywhere they can find them.

Shopping at H&M, thrift stores or whatever-designer-has-a-line-at-Target-this-week is no longer just for college students. Now, we’re called ‘recessionistas’.

Unfortunately, some of these people are turning to do-it-yourself fashion. And while that always seems to go well for that really cool girl you met waitressing, it never quite works out for the rest of us.

Even the hyper-fashionable, like Amanda Harlech (Karl Lagerfeld’s muse) swears by ribbons, leather thongs, pins, necklaces and lace to liven up and customize different outfits.

If that sounds a bit too complicated, the other option right now is to stick with bare and classic silhouettes and go a little crazy with the accessories. There’s a reason DeBeers is still doing a great business and it’s not just a rash of weddings. People feel that there is an inherent value in jewelry, like accessories are less likely to go out of style. A new purse, necklace or shoes can also change an entire look, but is (usually) cheaper than buying a whole new outfit. And it will be in the accessories that companies continue to make most of their money.

Besides, accessories are always more fun. People still want to feel happy and there aren’t a whole lot of places left to turn for something a little special and colorful. Heels are always popular, but with Posh Spice (Victoria Beckham) debuting Louboutin’s 5-inch Lola heels just last week, crazy shoes, tall shoes and weird shoes are more popular than ever. Who cares if you can’t walk in 5.5 inch heels, you probably don’t have a job to walk to anyway.

Just a few weeks ago designers showed their resort wear. (A show line that was created merely with the intent of having more clothes to sell. Because lots of people buy resort wear?) And looks were way more fun. The later-season, international, Fall Couture Shows also brought us the wild excessiveness of Lacroix and Gaultier. So there is some hope for fun, yet.

No cohesive style has so far formed out of the current economic downturn, but in times of trouble the industry often produces a uniformed response. The early-90s economy brought us grunge and in that there weren’t even many skirts to let us know the economy was turning against us. Who knows what this fall brings: both in designs and finances. Right now, it’s in your hands.

>Written by d/visible contributor Kelly Dunleavy.

This entry was posted on Monday, September 8th, 2008 at 12:08 pm and is filed under Fashion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.