Trying to be mindful of retailers’ quests for more affordable designer items, Suwannagate is offering select styles that retail from $300 to $500, but most of her collection is more expensive. Jackets, for example, retail for $1,200. "It's hard because we use fine cashmere, but I do know it's important to have those key pieces," she said, adding that her show will feature 15 looks instead of 24 like last time.

Rather than introduce a cheaper diffusion line that would potentially dilute her name, she is ironing out a private label deal with a Target-type store that she declined to identify. Suwannagate has put the brakes on plans to open her first store in Los Angeles, due to the ailing economy and the fact that "so many people are doing that already," she said.

After dabbling in ready-to-wear and contemporary sportswear, the designer has returned to what her business was founded on—handcrafted, sculptural knitwear. "I can do the rest, but it's not where my heart is. Since this is how the world is going to be, I decided to move forward with what I know and not be all over the place," she said.

Jason Wu received such media attention after dressing Michelle Obama for the inaugural balls that he decided to put a fur license with Saga Furs on hold to focus on RTW. Wu said he has been getting many requests for a diffusion line, but decided against the move. "It's not about doing anything differently, but do what you do and be the best at it," Wu said. "There is no market for excess. People buy exactly what they need. You need to create demand and desirable clothing people want to buy. The contemporary price point is already a large market, and I don't feel I would be contributing to it."

In recent months, Rose has launched a licensed bridesmaid dress collection, opened a bridesmaid dress store and developed a few products for Beauty.com. Now she is trying to wrap up a licensing deal with an unidentified party "for something that really fits in with the brand," which has been in the works for months. "I would never be interested in doing a licensing deal with something that didn't make sense for my collection," she said. "One of the worst things a designer can do now would be to make a deal or a partnership that doesn't make sense, because when we come out of this, people will remember," said Rose.

The runway collection she will show Sunday centers on "salable — it's not about pushing the envelope," she said. There is also a greater emphasis on daywear and more pick-up separates, due to the decline in cocktail parties and events. The fact that a number of stores are on the lookout for dresses that retail for $900 or $1,000 bodes well for Rose since the bread and butter of her dresses are in that price range, and have details, great fabrics, colors and even embroidery. Another plus is the wave of designer shoppers who are foregoing their typical $4,500 purchases in favor of sharper-priced designer dresses, she said.

Chai, for his part, is embracing the new retail landscape. "It's a reality, but it makes you be creative in a different way, across the board. It wasn't my intention to have a secondary line, but I gave a different tier of price points to my collection," he said.

For the first time, Chai will have pieces that are closer to the contemporary price range, by adding silk jersey and crepe de chine to his lineup, with silk jersey tops coming in at less than $200 at suggested retail, and silk jersey dresses at $600 and $700 at suggested retail. "The challenge is to try and create clothes that are appealing and come in at a competitive price point," Chai said.

He is not oblivious to the situation, and is more mindful of budgets, by reducing colorways and samples. "In a weird way, it's invigorating," Chai added. "It's [a matter of] 'What do I have to do? How do I make this interesting and how do I make this work?'"