Fashion trends in an uncertain economy

By Alexandria Sage

LOS ANGELES (Reuters) - Recession or no, middle-class fashionistas are dressing fashion forward. Their determination to follow the latest trends is playing out in disparate ways -- buying pricier but fewer haute style pieces, or opting for a wardrobe of reasonable facsimile knock-offs that won't strain the budget.

Who needs to spend money on yet another boring T-shirt? When times get tough, women look for special self-pampering items or trendy, low-priced looks that do not require foregoing the latest rage. The strategies devised by shoppers to deal with the uncertain economy are a further twist in a complex and fickle industry that pressures women to refresh their wardrobe every season.

Yet clothing retailers are feeling the pinch as shoppers scale back on buying, amid escalating gasoline prices, a housing slump, tighter credit and widespread consumer skittishness. The trendiest fashions, after all, are nice to have, but hardly essential.

Sales of women's apparel are estimated to have dropped 3 percent in February and March from year-ago levels, according to market research firm NPD Group. The worst-hit categories? Coats, sleepwear and accessories.

"In this kind of economy, obviously there's the temptation to shop in your own closet," said Wendy Liebmann of marketing consultants WSL Strategic Retail. "The temptation not to buy is clearly huge at this point."

Still, the truly dedicated shoppers are managing to find fashion fulfillment at the high end, and at the low.

Retailers like J Crew (JCG.N: Quote, Profile, Research, Stock Buzz) or Coach Inc (COH.N: Quote, Profile, Research, Stock Buzz) are banking that their best strategy lies in stocking one-of-a-kind items difficult to find elsewhere. Those items carry higher price tags, but shoppers may find that their quality and unique design justify the expense.

Every woman has a button-down shirt in her closet. But the sophisticated silver lame one at J Crew? Hard to resist.