Still, there are plenty of active, budget-conscious shoppers in Japan and the fast-fashion segment is thriving. H&M said the flagships it opened in Ginza and Harajuku in 2008 were its most successful openings ever. Forever 21 plans a large store in the spring right next to H&M and a few doors down from a recently enlarged Topshop/Topman. Fast Retailing’s Uniqlo chain, which offers low-priced, colorful basics heavy on textile innovations like heat retention or moisturizing capabilities, has been a top performer. Same-store sales rose 5.7 percent in January as consumers snapped up spring items like machine-washable sweaters and skinny stretch jeans.

Coach’s Luis noted how Japanese consumers are increasingly less influenced by the prestige factor that drove the luxury business in years past.

“Consumers are increasingly looking for value,” he said. “As they become more confident and independent, they are less likely to choose traditional luxury brands that represent external status symbols and more likely to choose brands that are relevant to their modern lifestyle and meet internal emotional needs.”

A survey from the Nikkei Research Institute of Industry and Regional Economy released Friday backs up that point: 32 percent of the 900 Japanese surveyed were “very much” or “somewhat” interested in high-end foreign brands, against 51 percent in 2004.

In terms of favorite brands, Burberry came out on top with 38 percent. Uniqlo, with 29 percent of the vote, managed to beat out Louis Vuitton for second place. LV came in third with 25 percent. Muji, another retailer known for high-quality, low-priced clothing, was fourth with 22 percent.

Consumers’ tendency to spend less is forcing retailers and vendors to rethink their strategies. Restir, one of Tokyo’s premier specialty stores located in Tokyo Midtown, has weathered the downturn thus far by catering to its core clientele of ultrarich shoppers and celebrities like Lindsay Lohan, said president and ceo Hiroaki Takashita. Still, he forecast the April-to-June period to be “very tough” so he’s planning to shift some of the store’s merchandising mix away from European luxury labels to cheaper gift items, T-shirts and more competitively priced apparel, such as Ashley and Mary-Kate Olsen’s contemporary brand, Elizabeth and James.

“Restir has the image of being a super exclusive brand, but along that line we want to mix in more reasonable products,” he said.

Retail and residential complex Roppongi Hills has managed to keep customer traffic and sales relatively stable in January and February, thanks to the development’s diversification beyond retail. Atsushi Matsunaga, general manager for retail development at Mori Building Co. Ltd., noted that visitors are still coming to the development to visit the Mori Arts Center and dine in its restaurants. “People are enjoying Roppongi Hills more like a town or a city,” Matsunaga said, adding that strong-performing stores like Zara and Diesel are helping compensate for the luxury downturn.

Tokyo-based jewelry firm E.M. has been having a hard time convincing consumers to shell out for its gold and platinum rings and necklaces, but it’s faring much better with more accessibly priced hair accessories like brass bobby pins and grosgrain ribbon headbands adorned with oversized faux gemstones. “People can’t afford expensive items, but they can still buy a few smaller things,” spokeswoman Rika Aizawa said during last week’s trade show Rooms.

A designer who goes by the name Lica and runs a small fashion label called Zechia said she hasn’t felt the effect of specialty store closures so far. The brand, which has been going for three seasons, has added about two to three new wholesale accounts each season. Lica said she and her colleagues stand to gain from consumers’ waning appetite for imported brands. “I think that this bad economic situation is a kind of chance for younger designers,” she said.