But even the rarified worlds of fashion and luxury are linked to the broader economy—and marketing lavish, often ephemeral goods is brutally challenging in the best of times. With banks tanking, bonuses vanishing, and retailer bankruptcies on the rise, peddling luxury in 2008 is no enviable task. Here's a quick survival guide for how the American fashion industry will ride out these distinctly un-fabulous times.

Accessories will be everywhere. Like jewelry, for example.

In a paper detailing predictions for the 2008 luxury market, consumer-trends analyst Pam Danziger of Unity Marketing deemed jewelry purchases less susceptible to market fluctuations. "Jewelry is unique among luxury goods because it offers the customer some perceived inherent value," she said. Retailers and editors are keeping their fingers crossed that Danziger is right. "We've shot more and more with jewelry," says Sally Singer, fashion news and features director at Vogue. "Jewelry can upgrade any outfit, and jewelry purchase values don't change as quickly as clothes, especially gold."

Other accessories—especially shoes and handbags—will continue to be big business for designers and retailers. Consumers might be skittish about investing in expensive, trendy apparel but will still give themselves a smaller designer fix with these products. And designers—many of whom already make more money from accessories than ready-to-wear—will be looking for ways to further expand these lower-price-point lines of their brands.

At least one Wall Street brokerage, Wedbush Morgan, downgraded its shares to "hold" from "strong buy" with analyst Jeff Mintz citing reduced retail demand for the product. "Current macrotrends in the environment" have led to weaker-than-expected sales, according to Crocs Chief Executive Ron Snyder, speaking to analysts during a conference call on Tuesday. Colder weather and the closure of the company's Canadian factory were also expected to crimp profit.

Reduced store traffic in U.S. stores, together with fewer retail orders, have cut into the footwear maker's sales, given what Snyder called the "impulse buy" nature of his company's shoes. "We need the traffic in order for our sales to really pick up," Snyder told analysts. U.S. consumers have been cutting back on purchases as they feel pressure from high gasoline and food costs, a slump in the housing market, tight credit and fears of a recession.

J.P. Morgan analyst Robert Samuels called Crocs' lowered guidance -- which predicts a possible loss of up to 5 cents per share in the first quarter from an earlier view of 46 cents profit -- "stunning." "We think bears will take the shortfall as evidence that the brand is over," Samuels wrote in a note. Samuels said he believed there was still a place in the footwear market for the Crocs brand, but advised investors to stay on the sidelines until current economic pressures, inventory issues and short-selling activity play out.

THIS spring, nearly every top designer has a "Cinderella" slipper, a shoe priced so high that it should come with a handsome prince -- or an hour with a male escort, at least. Christian Louboutin's webbed suede and button sandals sell for $1,345, while Versace offers a $1,400 satin pump festooned with nothing more than a few tassels. Dior's platform slingback with beaded heel runs $1,030, while Balenciaga's pink and brown braided gladiator sandal goes for $1,375.

Then, there's the $1,045 Lanvin flat (pictured on the cover) that should land at Barneys in Beverly Hills any day now. Already, women are salivating for this sandal adorned with a couple dozen leather-covered studs. Run, don't walk. There's a waiting list. "Footwear is having its runway moment," says Marshal Cohen, chief analyst for New York market research firm NPD Group. Designers are "raising the cachet of the brand by having one extravagant style, and that one makes the other pairs seem more reasonable."

In other words, the glass slipper has shattered and consumers have resigned themselves to splurging. Case in point: You pick up a sandal and sigh with relief when it costs less than your monthly car payment. And those sale endorphins surge when you see $1,000 platforms marked down to $675. Pièce de résistance styles aside, the going price for a luxury designer pump has climbed from $350 in 2004 to $500 in the last year. Mary Janes, an "it" style for spring, range in price this season from $575 for a sleek patent leather pair by Gucci to $690 for suede ones with zaftig curves by Prada. Miuccia Prada recently was quoted as saying, "The obsession with handbags has finished for now. It feels over. It's about shoes." Celebrities such as Kirsten Dunst pout for Miu Miu ads that highlight accessories, and starlets name-check their mules on the red carpet. Christian Louboutin's iconic crimson undersoles -- as eye-catching as fresh spilled blood on asphalt -- have become status symbols. Every new season brings a new style, and with the reign of jeans and casualwear, a breathtaking shoe separates the chic from the chaff.

That's not exactly good news for shoe junkies. A pair of sandals could set you back as much as a shoulder bag. Right now, a turquoise Prada satchel sells for $535 on the Neiman Marcus website, and the designer's wavy ankle-wrap sandal sells for $550. "I will literally think, 'Do I spend $600 on shoes or get new plumbing?' " says Carlota Espinosa, vice president of online sample sale retailer HauteLook.com. "They keep raising prices to see if people will pay more. And there's no law that says they can't."

The Golden Globe-winning actress, and longtime vegetarian, has teamed with the New York label Té Casan to design her own line of vegan-friendly footwear, a collaboration that has aptly, if not predictably, been dubbed the Natalie Portman Collection. Designs for the shoe line have yet to be revealed, save for one pair of red patent high-heeled Mary-Janes, which the 25-year-old sports on the chic label's Website.

As well as being made without animal ingredients—no fur, no leather, no feathers-5 percent of the range's profits will be donated to charity, which could quickly add up to a hefty sum. While the kicks are decidedly critter friendly, they may be less kind to consumers' wallets, with each pair expected to retail for around $200. The Natalie Portmans won't officially be made available until February.

• Samsung Progressive HD Camcorder SC-HMX10C
• UGG Australia Classic Crochet Tall Boot
• Toywatch Crystal and Colored Crystal Watch
• Perfect Endings Cupcakes from Williams-Sonoma
• Melamine Bowls, Measuring Cups and Spoons
• The Artisan Stand Mixer from KitchenAid Home Appliances
• The Discovery Channel's Planet Earth DVD Set
• Kai Body Butter and Body Buffer
• Clarisonic Skin Care System
• Claus Porto Soaps from Lafco New York
• The Pillars of the Earth by Ken Follett
• Breville Ikon Panini Press from Williams-Sonoma
• HDTV Refrigerator with Weather and Info Center from LG Electronics Model LSC27991
• Ciao Bella Blood Orange Sorbetto
• Rachel Pally Swing Turtleneck and Sailor Pants
• Scrabble Premier Edition from Hasbro
• United Artists 90th Anniversary Prestige Collection
• Shaklee Get Clean Starter Kit
• O's Guide to Life
• Josh Groban's Noel CD

Rene Caovilla, retailer of Harrods, one of London's well-known high-end stores, designed a pair of ruby, sapphire and diamond encrusted sandals worth $120,000. Caovilla ordered live Egyptian cobras to guard the shoe counter on its launching day. Security experts said that hiring a poisonous snake to guard their most precious footwear is really the most effective because no one would dare touch their most expensive sandals.

Harrod's spokesperson said, it is just for photo op and they hired the cobras just for the occasion. "The snake has now been returned to its owner," the spokeswoman said. "So no need to fear snake bites at the shoe counter then," she added. "Not unless you're a burglar," the spokeswoman said.

A new footwear design concept that aims to make women safer and more comfortable behind the wheel, without compromising on their style, is launched today.

Sheilas' Wheels has developed the Sheila Driving Heel which gives women the best of both worlds - a safe, flat driving shoe and a glamorous pair of heels in one - all interchangeable at a push of a button. More than 11.5 million* women drivers in the UK are putting themselves and other drivers at risk by wearing the wrong footwear when behind the wheel, according to new research from Sheilas' Wheels - the car insurer for women.

One in ten (10%) female motorists admit that they have had a car accident or a near-miss because of their shoes slipping off or getting stuck between, or under, the foot pedals whilst driving.

The Safe Shoes report shows that a massive 80% of female drivers wear inappropriate footwear when in control of a car - choosing style over safety. A third (33%) of all female drivers confess to wearing flip-flops, while 18% claim that they have worn no shoes at all when driving, which experts say can be extremely hazardous and is currently illegal in some parts of the UK**.

In fact, just under half (47%) of women drivers said they chose what shoes to wear when getting ready in the morning based on what went best with their outfit rather than being the safest for driving in.

Under a fifth (17%) of female drivers keep a spare pair of driving shoes in the car to change into, while nearly a quarter (23%) admit they can't be bothered to change their shoes when behind the wheel even if they know they are not the safest for driving.

Jacky Brown, spokesperson for Sheilas' Wheels, said: "It's astonishing that so many women are putting themselves, their passengers and other drivers at risk by wearing the wrong shoe or no shoe at all whilst behind the wheel. Stilettos, sling-backs and strappy sandals aren't the sensible choice when it comes to controlling a car."

"Our Sheila Driving Heel design could provide safety-conscious female motorists with the ultimate driving shoe - allowing women to wear a safe flat shoe whilst driving, and a fashionable heel once they are out of the car."

The report highlighted that 63% of women called for better guidelines to advise them on the correct form of footwear to wear when driving. A lack of understanding is clearly evident as over half (54%) of female motorists believed that sports trainers were the safest shoes to drive in - even though their thick soles and chunky design limit both movement between, and contact with, the pedals.

Dianne Ferreira, spokesperson for Brake the national road safety charity, added: "An alarming number of female drivers simply do not realise the danger they are putting themselves, and others, in by driving in inappropriate shoes. High heels, platforms and flip-flops can seriously hamper your ability to drive safely, and could have fatal consequences. It only takes a few seconds to change your shoes before each journey to help ensure you arrive safely."