Under a belt-tightening cloud, Paris Fashion Week is underway.

PARIS, Oct 1 (Reuters) – Celebrities and international visitors have descended on the French capital, marking a sharp comeback as the fashion industry rides a post-pandemic spending frenzy.

The final Paris Fashion Week runs until October 4 and features big names including Chanel, Dior, Hermès, Louis Vuitton and Saint Laurent, culminating a month of shows also held in New York, London and Milan.

As the City of Light fills with designers and executives from the United States and Asia — with the exception of China — “the mood is great,” said Natalie Lucas Verdier, womenswear buying director at France’s Department Printemps. “I feel like we still don’t really understand the risk of inflation or recession or the geopolitical context.”

The packaged fashion line has provided another boost to local retailers following a surge of tourists who took advantage of the euro’s weakness this summer.

The glamorous catwalk shows and after parties erupt against a belt-tightening backdrop. Local authorities are gearing up for energy-saving measures. French President Emmanuel Macron’s government has called on companies to cut their electricity consumption by 10 percent. Lights at the Eiffel Tower will go out an hour earlier than usual, while boutiques with LVMH ( LVMH.PA ) brands will turn off their store lights three hours earlier.

LVMH on Thursday announced bonuses for 27,000 workers in France to offset inflationary pressures on their budgets.

Wealthy customers of fashion houses are mostly protected from the high cost of living. But analysts at Exane BNP Paribas added a recessionary outlook to the luxury industry forecast starting in the fourth quarter and continuing for three quarters.

This puts fashion labels in a difficult position. They aim to create a buzz around their collections and recruit new consumers – arguing for failure – without seeming tone-deaf or unaware of the drama and glamor expected of such events.

Dior designer Maria Grazia Chiuri said: “We live in very difficult times. The Dior catwalk featured a large cave-like cardboard structure created by artist Eva Jospin.

“It’s really been three very intense years… It’s impossible to imagine that it hasn’t influenced my work,” says Chiuri, whose exhibition highlights the ability and creativity to transform the ordinary and high-end materials into art.

One of the key, international capitals of fashion, Paris, stronger than the epidemic, has added new places to serve the industry, and has invested heavily in department stores and high-end hotels with luxury groups based here. Labels from other markets – including the UK’s Victoria Beckham – have also flocked to the city to gain wider exposure and fashion credibility.

American designer Vaquera sent models down the runway in ripped jeans, blaring punk music and waving faded American flags, sparking outrage. “I guess it’s all over the world right now,” said Vaquera designer Brian Taubensee, speaking about the tension in the United States ahead of November’s midterm elections.

Some industry observers noted the difference in style and what Verdier described as “a bolder mix” of the Pretemps. Tik Tok star Jessica Wang’s stylist Posh McCoy looked at high and light styles as well as vintage pieces.

“Now we want you to take the dress, but add in your mother’s shoes, add in your grandmother’s favorite diamond collection, add these things to make that thing look like yours,” he said.

Reporting by Mimosa Spencer; Editing by Daniel Wallis

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