Laura and Kate Mulleavy, the sister duo behind three-year-old high fashion label Rodarte are not your typical designers. Most noticeably, they don’t drape themselves in fancy designer goods (some of their dresses can cost upwards of $20,000.00). They instead stick with the basics, preferring gray Hanes t-shirts paired with jeans and sneakers. And, an existence in suburban California is preferred in lieu of the fashion mecca of New York City.

Their foray into the esteemed fashion world wasn’t done in the standard way, either. They didn’t secure initial backing for their label from a financier or a fashion conglomerate. Instead, Kate sold off her entire collection of rare records while Laura waitressed until recently. Both still live at home with their parents in Pasadena, California and remain humble despite establishing a critically acclaimed label in three years’ time.

Part of Mulleavys’ success can be attributed to an unwavering work ethic coupled with a wild imagination. The draw inspiration in unlikely places ranging from electronics stores to motorcycle rallies. Perhaps the most amazing part of their story is that neither went to school for fashion design (instead settling on degrees in art history and english). Their design skills are completely self-taught.

Currently, the Rodarte clothing line is sold in 42 stores worldwide and the Mulleavy sisters are regarded around the world as a fashion fairy-tale story. But, behind the scenes, they work relentlessly to innovate and push the envelope with layering and colors.

Some fashion critics bag Rodarte as being too art and concept driven instead of producing wearable clothing. I disagree. Their unwavering vision and dedication to design and innovation makes them stand tall among their peers. The concept of clothing as art should be embraced in this brave new world.

The current Rodarte collection can be viewed on Style.com.

A slumping economy has caught much of the apparel industry off guard and faltering under an increasingly volitile wave that can be attributed to the deflation of pricing on mainstream American labels, increased manufacturing costs and savvier consumers who are putting more thought into their purchases.

While the price of gas, utilities and groceries has skyrocketed, discretionary (non-essential) spending has been hit hard. “Fast fashion” retailers have fared okay so far in this lackluster market, but eventually, something has got to give.

Many of the staples in mainstream American apparel (Levi’s jeans, Lacoste polos) have actually decreased in price, even when adjusted for inflation due in part to the trend of moving manufacturing to countries with cheaper labor costs. But with the dollar losing steam, those rates have jumped. “As far as bottom costs go, we’re there. I think we’ve exploited all the countries on earth for people who really want to work for nothing,” said Bud Konheim, the chief executive office of Nicole Miller (NYTimes.com).

In many social circles, it is now hip to focus on individuality with regards to fashion and making thoughtful purchases. Instead of purchasing a gaudy, logo-driven article that is instantly recognizable (and quickly dated), people are leaning towards rare, more unique items. “Everything we pick up today has to pass a test,” said Candace Corlett, the president of WSL Strategic Retail, a consulting group. And, with so many options nowadays, who can blame consumers for taking their time to make a purchase? Unfortunately, the NY Times mentions that this is causing many fashion executives to feel the pressure on their bottom lines. Bud Konheim laments that “We as a business cannot afford to have a customer take a second look and ask, ‘Do I need this?’ That is the kiss of death. We’re finished, because nobody really needs anything we make as a total industry.”

Not everyone is faring badly in the tough American economy. Tom Wallace, President of trend forecasting company Label Networks lists a handful of brands including American Apparel, H&M and Uniqlo that are weathering the storm surprisingly well. This may be because of their ability to deliver consistently on-trend clothing in basic shapes at reasonable prices that are easily mixed in with what consumers already own.

To be fair, the recession isn’t hitting everyone. The International Herald Tribune says that “While American buyers are keeping an uncharacteristically low profile, with a beady eye on the miserable dollar exchange rate, other parts of the world are rejoicing in burgeoning markets and have no thought of recession.”

To cope with the lagging economy, luxury fashion houses are surviving the downturn by pushing accessories including jewelry, shoes and handbags more heavily. While shoppers might pass up high priced trendy clothing, they will still drop money on items they can use regularly.

As the U.S. recession deepens, it will be interesting to see what creative tactics brands will employ to stay relevant when consumers are more concerned with basic needs. With rock bottom prices already the norm in the nation’s collective consciousness, the sinking of many labels will be inevitable.

Go get your schwag!