J'adore the new Dior

FASHION-watchers say that during an economic downturn, hemlines rise and heels get smaller and clumpier, while during times of prosperity, skirts fall below the knee and we brandish our stilettos. However, for those privileged few who can afford to spend tens of thousands of pounds on couture pieces, economic uncertainty couldn't be further from their minds.

This attitude was evident at the Dior couture show in Paris, which opened Couture Fashion Week on Monday. The sheer extravagance of the creations and, more specifically, the cinched-in waists, padded hips and cantilevered bustlines were reminiscent of Christian Dior's New Look collection of 1947. Much like that controversial post-war collection, which seemed to laugh in the face the frugal 'make-do and mend' mentality, John Galliano's latest collection for Dior gave a sartorial two-finger salute to the credit crunch, in its reams of luxurious fabric.

It might be argued that the wealthy women who wear couture are relatively unaffected by the day-to-day economy. Yet even by Dior standards this was a dazzlingly extravagant collection. Ballgowns were full-skirted, fairy-princess affairs with layers of sparkling organza and billowing chiffon; waists were corseted and hips padded to cartoonish proportions. Oversized pleats featured heavily – perhaps a reference to the full skirts of the New Look – while jackets were stiff and folded, origami-style.

While couture is traditionally worn by women over 35, Galliano's creations were youthful and sexy, with tight bodices and sheer skirts: a hint, perhaps, that the label may be reaching out to a younger couture customer.

"This collection definitely echoed the New Look, particularly through its use of a lot of fabric," says Danielle Radojcin, the fashion editor at Hand bag.com. "It was very clearly aimed – more than ever – at the rich elite, those essentially unaffected by (recession]. Galliano is a rebel and he likes to be a bit anarchic. I wouldn't be that surprised if he was taking a bit of a swipe at the credit-crunch mood with this collection."

If so, then Galliano is reflecting the approach that Christian Dior took 61 years ago when he realised that, regardless of the economic state of the country, high fashion is always in fashion. In his autobiography, Dior said of his beloved New Look collection: "I wanted my dresses to be constructed, moulded upon the curves of the feminine body, whose sweep they would stylise." He dubbed the line "Corelle", but its perceived frivolity initially made it unpopular.

"Post-war, Dior's extravagant and expensive New Look was seen as utterly outrageous – a sort of betrayal of the economic standard," says fashion historian and clothing collector Rosemary Hawthorne. "Most people saw it as an extravagant disregard of the climate at the time, very shocking and typically French! On the other hand, very little can stand between a woman and fashion: I think women were so enamoured with the New Look they were prepared to do whatever it took to get it."

In the 21st century, attitudes appear little different. Surprisingly, the couture market is currently booming in spite of economic uncertainties. This is thanks in part to an increase in the number of clients in the Middle East, Russia and Asia. Sales of Lacroix's summer collection jumped 40 per cent year-on-year, while Chanel saw couture sales rise more than 20 per cent last year, and its January collection, shown in the Grand Palais, was one of its most successful to date.

"The demand for very, very high-end products continues to be strong," Sidney Toledano, president of Christian Dior (which enjoyed a 35 per cent increase in couture sales last year), told Women's Wear Daily this week. "Very rich people are not suffering from the (financial] crisis. The workshops have been very busy."

"We have not seen any real impact, in the couture world, from the generally negative economic climate," adds Robert Triefus, an Armani executive vice-president of worldwide communications. "This seems to underscore the widely held belief that, at this level of the market, clients are impervious to economic downturns."

Even the ready-to-wear collections have been relatively untainted by the slow-down. Fiona Jenvey, the CEO of fashion trend forecaster Mpd click.com, says that when the financial chips are down fashion designers tend to pull out all the stops: "During times of economic downturn, you would expect the consumer to take less risk in terms of fashion: the reverse is true.

"Styling and colour become more flamboyant and individual. If you think back to the recession of the early 1990s and look at the eclectic 'grunge look', you see a strong individual statement. Look at the autumn-winter 2008/9 runway collections and an almost identical look is emerging: grungy, dark colours in shiny fabrics, combined with flamboyant, bright highlights. This may represent sober times but shows that, at heart, the consumer is the eternal optimist."

Indeed we are. All together now, ladies: "What credit crunch?"