French designers get dollar-conscious

You don't have to be a fashionista to know that French fashion has a reputation for being uppity and tres expensive. They don't call it haute couture for nothing.

But according to the Wall Street Journal, "With the euro reaching new records against the dollar, U.S. shoppers are finding European designer labels even more expensive than in past years. But a young crop of French designers is now trying to prove that style doesn't have to be so costly."

Unlike the traditional fashion houses selling $1,000 bags, less expensive French labels are outsourcing manufacturing to keep costs down -- a big no-no in traditional fashion circles, where local production is considered key to retaining cachet. Some are also taking the hit on the euro's rise, rather than passing the expense on to American consumers.

Paul & Joe is even -- gasp -- designing a collection for Target (NYSE: TGT).

Will Wal-Mart (NYSE: WMT) be able to capitalize on the trend toward more affordable French fashions, as it struggles with its efforts to sell more upscale clothing? Doubtful. If outsourcing production in France hurts cachet, designing clothes for Wal-Mart, the international symbol of corporate avarice and apathy toward people, would be fashion suicide.