DESPITE news of a recovering economy, the credit crunch continues to cast a pall over the world of fashion. And no, not even the (often) sheltered ephemeral world of haute couture has been spared. At Paris's just-ended haute couture week, it was clear that the ugly claws of recession have been digging in deep. Nowhere was this more apparent than the house of Christian Lacroix who showed what could possibly have been his final high-fashion collection on Tuesday. News of his 22-year-old fashion house going into administration came right after Singapore's Audi Fashion Festival in May, where organisers scored a coup by showing Lacroix's last season's couture collection in the city for the first time ever.

Unfortunately, unless a rich fairy godmother emerges soon, Lacroix's work may eventually be mentioned only in the past tense.

Not surprisingly, stoic tears flowed at the Musee des Arts Decoratifs as the fashion maestro presented an emotional collection that was only made possible through the charity and the collective will of the artisans - from seamstresses to shoemakers - and models (who were only paid 50 euros each to comply with French labour laws) in a bid to salvage the business of the designer that they had come to love and respect.

To make matters worse, should a backer not emerge by the end of the month, this farewell collection will not even make it to production. Which in itself is a huge pity for Lacroix had finally managed to dig deep within himself to produce his most wearable collection to date.

Showing restraint and ease as he pared his flamboyant use of colour down to mainly black and midnight blue, he took the theme Parisian chic to heart with flirty cocktail dresses and slender gowns. The accessible collection spurred the famed embroiderer François Lesage to tell journalist Suzy Menkes: 'Why couldn't he have done it earlier?'

The demise of Lacroix serves as a stark reminder to the fashion world that talent and passion alone are not enough to survive in today's unforgiving fashion industry. The harsh reality is that it is what sells that matters and what if last week's couture shows is any indication, then what sells are the 'classics'.

Maybe it was a hankering for the good old times, but there was little doubt that other big couture houses in Paris were big on nostalgia, eschewing ground-breaking fashion in favour of classic looks inspired by the glory days of the past, a mantra followed by grand couturier Dominique. 'The problem with a lot of the younger designers is that they keep trying to come out with creations that are out of this world in order to grab attention, and that is simply not sustainable,' he told BT in an interview earlier this year. 'This is why designers such as Karl Lagerfeld do so well because while he is creative, he never loses sight of the essence of the brands that he designs for, which few other designers actually remember to do.'

Not one to let Chanel's fans down, Lagerfeld delivered precisely that at the Grand Palais. There was a definite throwback to the fashion house's iconic past, as models clad in a slew of signature skirt suits, dresses and gowns boasting Chanel's impeccable craftsmanship strutted their stuff around giant sculptures of Chanel No 5 perfume bottles.

And therein lay the genius of Lagerfeld. His ability to creatively tweak, reinvent and modernise without losing sight of what made Chanel the success it is today is the reason why he is one of the most sought-after designers today. It is the reason why although it has been 38 years since the death of Madame Coco Chanel, every piece sent down the runway bearing her name still looks like a classic out of her own closet, explaining why Chanel continues to sell despite a credit crunch.

Likewise, at Armani Prive, Giorgio Armani finally showed that he has learnt the lesson that it is better to stick to what you do best. Rather than sticking to his silly no-pants rule that marked the beginning of his couture shows four years ago, he showed the world why he is the reigning king of suits and pantsuits with designs boasting sharp tailoring and a hint of glamour.

But nobody paid bigger homage to the past than Christian Dior's John Galliano. Adhering to the idea that revisiting house values trumps crazy new ideas, Galliano took spectators back to the intimate salon days of the 1950s as he showed the clothes in the way that Christian Dior used to present to clients and press.

Drawing inspiration from photographs of Dior himself presiding over the backstage mayhem, the scenario entitled 'Fever in the Cabine' featured garter belts galore and Dior's signature New Look full skirts, jackets cinched at the waist, structured ruffled gowns and models in various states of undress.

Further historical references came in the form of the show at Dior's own chic premises on Avenue Montaigne (complete with more than 4,000 roses) - a move that Sidney Toledano, president of Christian Dior Couture described to AFP as a way of 'rediscovering the atmosphere of haute couture, which needs to get back to its roots and values.'

Was the lack of clothing and 'humble' choice of location a cheeky play on the tough times of today? Probably not. However, it provided good fodder for much needed humour. A reporter was overheard teasing one of the staff: 'Did you spend all the money you saved on the location on flowers?'

Having said that, what do you do if you are a smaller couture house with little history or classic shapes to fall back on?

Then you have to think outside the box, says couturier Franck Sorbier who calls it 'difficult times for haute couture'.

Despite budget constraints, the enterprising designer funded his showcase by selling his artwork online and paring down his collection to just 10 pieces - five for women and five for men. And drawing inspiration from the maverick Serge Lutens who has mastered various arts such as photography and perfumery, Sorbier's showcase was also used to sell works of art in the form of tableaus, using materials such as crockery and lace to create quirky portraits mounted on notice boards.

'It was a challenge but I found the whole process refreshing as it was a chance for me to show the world that I have other talents other than designing clothes,' he says. 'I also hope that people will start to see couture more as an art rather than items of clothing that they wear.' While he admits that the big spenders these days are clearly the Middle Easterners, Sorbier adds: 'French women are still ready to spend on couture - the problem is that they don't want to be seen as being extravagant enough to buy couture.'

Thankfully, for these women who are beginning to fight shy of excess, salvation came in the form of Valentino, showcasing one of the strongest collections of the week. Although Valentino himself has retired, his successors Maria Grazia Chiuri and Pier Paolo Piccioli did not let him down with their couture offering on Wednesday.

A simple colour palette that was primarily black with hints of nude, the designs were a luxurious spectacle of macrame and Chantilly laces, embroidery and sequins. Even then, not a single piece sent down could be deemed ostentatious or in your face. Rather, through the clever use of silhouettes and structures, the designs remained simple and exceedingly elegant.

If there was any single collection that may have cracked the code of creating outstanding haute couture without tipping into the realm of excess, this would be it. If anyone is going to smile through these tough times, it will be Valentino's pearly whites that are going to shine very bright.

This article was first published in The Business Times