Will women continue to shell out $1,200 for a handbag they'll see plastered in every magazine and on the arm of every other girl on the street? And how many will still be willing to spend a month's paycheck on a super-luxe outfit, only to find it knocked off at Zara for 65 bucks?

It's no surprise that mass-luxury proponent Patrizio Bertelli of the Prada Group and hip jeanswear giant Renzo Rosso of Diesel disagree on the topic. In fact, the two heavyweight managers duked out the very subject at a fashion conference held Friday in Milan.

The fashion philosophies of both men were clearly transmitted before either one had said a word at the panel discussion: Bertelli, in a formal dark suit and tie, reeked of posh business etiquette, while two seats away Rosso, who sported a deconstructed black blazer paired with super-washed jeans and worker boots, wore his reputation as fashion's favorite renegade rebel.

"The youth of today is against super-luxury and a super-waste market," declared Rosso to the panel of luxury managers. Rosso said decisively that "people are rejecting these old principles and are demanding fantastic, cool clothes without the high price tag."

Patrizio Bertelli, dismissing Rosso's assessment, retaliated: "Luxury has been present since the time of the Middle Ages and isn't going anywhere. The topic must be regarded historically." Bertelli, whose Prada Group parents several luxury brands including Jil Sander, Helmut Lang and Church's, is banking on the longevity of luxury goods in the market.

Rosso seems to know a thing or two about the under-30 market, and not just because he hangs out with skate rats. His jeanswear company has morphed into a $500 million business and is one of the most successful youth lifestyle brands today.

But what happens when these kids grow up?

Bertelli, who is no stranger to the luxury market (after all, his Prada brand has grown into a $1.2 billion powerhouse) believes they'll go right on wearing luxury in its more traditional form: "These 25-year-olds," he said, referencing Rosso's core clientele, "are going to mature, and then they will follow the trends set before them."

Rosso, on the other hand, views mass luxury goods as outdated and unrealistic in today's market, regardless of age. He says niche brands are the mainstay of luxury for the future.

Rosso cites Belgian brand Martin Margiela, which he acquired in early September, as a perfect example of this. "Small and exclusive luxury is key," said Rosso, "but it needs a casual touch."

His recent collaboration with Karl Lagerfeld to create an exclusive line of limited jeanswear pieces for Lagerfeld Gallery is another example of this philosophy at work. The high-end pieces, retailing around $300, have select distribution in Lagerfeld stores and only five Diesel concept stores worldwide.

"People want special and they want small," says Rosso. "They don't want the same expensive items that everyone else has." And the battle continues.