By CATHY HORYN


The fabric in the hands of Thakoon Panichgul is exquisite. An Italian jacquard, woven from yarns of eight different colors, it costs more than $100 a meter. A dress that Mr. Panichgul plans to make from the cloth for his runway show will cost $2,000.

He lets it fall away. It troubles Mr. Panichgul that as much as people love beautiful clothes, they do not understand why they cost so much. “It’s becoming a losing battle,” he said.

Designer fashion - the creative wellspring of the apparel industry, the engine of style magazines, the stuff of plain old dreams - is experiencing a serious case of the blues. As another show season rolls out across New York, against the chilliest retail climate in years, many believe this is not merely a difficult moment for high-end fashion but a defining one as well.

Here is the reality: More and more people shop at H & M and other purveyors of cheap chic. Factories offering fine craftsmanship in Italy and New York are closing as business moves to China. Consumers do not see longevity in the clothes they buy. “I think the true designer business is in trouble, no question about it,” said a senior buying executive at the retail store Macy’s, declining to speak on the record because of the company’s policies.

With shoppers afraid to spend, department stores cut orders for fall goods by 30 percent. For next spring - the collections being shown during New York Fashion Week through September 17 - little improvement is seen.

“In my 40 years in fashion, I’ve never seen women scared to shop - at all price levels,” said Vera Wang, who sells $1,000 dresses at stores like Bergdorf Goodman and also has a low-priced line at Kohl’s department store.

Retailers have pressured designers like Ms. Wang to lower their prices. Anyone walking through an empty store in recent months could see why this was necessary. The luxury chain Neiman Marcus reported a $668 million loss for the year. Saks posted a 16 percent drop.

Makers of high-end fashion wonder how far they can drop prices without diminishing their prestige or compromising their creativity.

Ms. Wang said she cut prices for her resort collection this year by 40 percent, but was told by some stores that those $600 to $800 dresses were maybe too low for a designer brand. “I don’t know what’s going to happen,” Ms. Wang said, referring to the future of prestigious labels. “It’s going to be a world of crepe de Chine.”

Although many consumers would not mourn the disappearance of $2,000 dresses from the racks, the creativity of runway collections inspires looks in the mass market and sets trends that entice shoppers back into stores season after season, fueling a vast segment of the economy.

In the 40 years since modern readyto- wear came into existence in Europe and America, designers have enjoyed enormous respect and prosperity. However, in the past few years, they have lost some credibility with consumers. Their clothes became exotically pricey as they courted celebrities and makers of fast fashion.

Another impact of recession-driven designing is a retreat to the safe looks that sold well in previous seasons. The designer Elie Tahari, whose labels generate about $500 million in sales, is focusing on animal prints, leggings and slim pants worn with tunics.

“Fashion has to be new and wearable and there has to be a need to it,” he said. Mr. Tahari has cut prices by 30 percent and closed a factory he had in Italy to move that production to China.

European houses, with their savoirfaire and deep pockets - thanks to leather goods and perfume sales - may hold a creative edge over American counterparts that will matter in the marketplace. Stores insist that women, while choosier now and prone to mixing styles, can’t part with quality altogether.

“There are still customers who want that workmanship,” said Ann Stordahl, the general merchandise manager at Neiman’s. “There are just fewer of them than there were.”

But there’s a paradox in all this. Ultimately, what distinguishes highend fashion is an appreciation for the small differences: in the fit, the fabric. This is a designer’s creative toolbox. Remove a tool, and he has less with which to do his job.

Joseph Altuzarra, a young designer in New York, specializes in ruched georgette dresses, priced around $2,000, which are made in France. Recently, he asked his factory there if it might simplify the ruching process to lower costs. The factory refused.

“They said they would be ashamed to produce a garment that way,” Mr. Altuzarra said.


“In my 40 years in fashion, I’ve never seen women scared to shop - at all price levels.” VERA WANG