Williamson has limited her food purchases, walked the mile and a half to class instead of taking the subway, and skipped going out to bars and clubs in order to save up for her beloved Lululemon yoga pants and a new pair of designer jeans.

She, and other Gen Y women have grown up on brands just as they came of age with Nick at Nite, Beanie Babies, and slap bracelets. They sought out designer buy goods as early as middle school, first with $150 Kate Spade bags, soon after with $80 Juicy sweatpants and finally with $160 designer jeans. Over the years, Gen Y has become hyperaware of designer labels.

Although the recession has hurt premium apparel brands, they continue to find favor among fashion-conscious, Gen Y women who, so long as companies tailor their marketing strategies appropriately, are buying into affordable luxury.

Branding expert and author Rob Frankel believes that successful lines play to the desire for designer labels. “A big difference from traditional spending is that brand is far more important today than ever,” said Frankel, whose book, “The Revenge of Brand X,” instructs companies on effective branding strategies. He believes that Williamson, who is cutting back, is part of a minority. “Today, consumers will either go into debt to buy their chosen brand — or prefer to do without.” Frankel added.

Whether or not they are going into debt, members of Gen Y have enormous spending power. Adjusted for inflation, they spend five times more than their parents did at the same age, according to “Why Y Women,” an October 2009 study of Gen Y women’s influence on lifestyle trends prepared for Sugar Inc. by Radar Research. Gen Y spent more than $120 billion in 2007, found a recent Harris Interactive study.

With all of these dollars leaving Gen Y’s wallets, there is little doubt that the group is passionate about shopping. They spend more time at the mall, are surrounded by product placement, and are unwilling to repeat the same outfit, said Jayne O’Donnell, a retail reporter for USA Today. “One girl said to me, ‘if I’m going to post something on Facebook on Friday, I can’t be wearing the same thing the next Friday in my photos,’” said O’Donnel, who also co-authored “Gen BuY: How Tweens, Teens and Twenty-Somethings Are Revolutionizing Retail.” With more people watching, the pressure to consistently debut a fresh, impressive style has shot up.

To attract Gen Y shoppers, apparel companies must spice up their images. “Especially during this time, brands really have to focus themselves as providing something unique,” said Kwesi Blair, a senior associate at Robert Burke Associates, a New York luxury consulting and brand development firm. “It’s really going to be about, ‘Why should I get this brand over something else?’” Blair points to Tory Burch, defined by its emblematic $195 shoe, the Reva ballet flat, as an example of a company that has made itself stand out.

For affordable luxury brands wishing to distinguish themselves, digital marketing campaigns are a must. Coach has ramped up its Facebook page, which now has over 470,000 fans. D&G is a heavy presence on the Dolce & Gabanna Facebook page, and Tory Burch updates its Facebook page daily. All of these brands are on Twitter.

But, even with this slew of changes, old-fashioned quality reigns supreme. “It’s more worth it for me to invest in something I know I will have forever and ever than to buy cheaper, trendier pieces that may fall apart after one wearing or that I’m not sure I will like after a few weeks,” said Courtney Griffin, an NYU junior whose closet is filled with pieces from Marc by Marc Jacobs, Juicy Couture, and Free People. All three of these labels fit into the affordable luxury category, with prices ranging from $90 to $500.

Ultimately, young female shoppers are responding well to the ways in which the fashion world is accommodating their desire for affordable luxury. “I don’t necessarily make any sacrifices to wear designer clothes, but I do try to be smart about it,” added Griffin.