BRIC houses and beyond: Luxury and affordable chic find new strongholds in New York City's market

Despite dismal economic forecasts, certain retail sectors are hitting new heights, particularly among the ultra-luxury or "luxe" fashion brands such as Versace and Giorgio Armani and retailers like Bergdorf Goodman. The other retail sector holding its own in the fashion world is "affordable chic." And in an interesting twist, the two sectors have been morphing in unprecedented ways. A paradigm reflective of this trend is the "luxe" shopper wearing $48 capri pants from H&M, power walking down Fifth Ave. in $730 Jimmy Choo stilettos and carrying a $1,600 Hermes "Birkin" bag. Fueling this über shopper phenomenon is a whole new category of "BRIC" retailers who add a new cachet to the ultra luxury and affordable chic environments. The acronym actually describes four countries of origin for a new breed of retailers, i.e., Brazil, Russia, India and China. BRIC Houses Brazil's recent entry into New York is through Rosa Cha, which opened a wildly successful outpost in SoHo. The affordable chic brand currently has 16 stores throughout South America, with boutiques in Turkey and Portugal, as well. From Russia with love comes Kira Plastinina expanding an already considerable presence in Russia with 40 existing stores and two in the Ukraine. In the U.S., the brand has already opened six stores in the past two years in southern California, one in New Jersey, one in Connecticut and two in Manhattan. In addition, Kira Platinina is opening stores in Las Vegas and in SoHo at 594 Broadway. India's number one jewelry and accessories brand, Tanishq, with 108 boutiques in 73 Indian cities, has recently opened stores in suburban Chicago and New Jersey. Bombay-based fashion line Priya & Chintan opened its first U.S. boutique in Atlanta in 2006 and in New York last year to an enthusiastic and eclectic audience. As for China, there have been many high-end entrees into the luxe market over the years, such as the much ballyhooed and sadly dismissed Shanghai Tang. But super chic Blanc De Chine, which opened its flagship on Fifth Ave. and 53rd St. in December of 2005, is still going strong as destination for wealthy shoppers who appreciate its unique takes on traditional Mandarin-collar jackets, Qi Pao dresses, and pants. Beyond the BRIC Luxury and affordable chic foreign brands are proliferating in New York. Not only do they garner the advantages of the tourist dollars, but we are a city of shoppers and fashion-lovers who buy at all price points. Whether its luxury brands from France like Comptoir des Cotonniers and Zadig & Voltaire (opening in October in the Meatpacking District); children's retailers such as Oilily from the Netherlands; or Uni Qlo from Japan, retailers from other countries see a new kind of promised land in New York. Another recent success story in this mode is Who.A.U., whose U.S. launch has been spearheaded by my team. The Korean-based retailer, with its teen chic California-style fashion theme, opened stores in Paramus, N.J. and Stamford, Conn., and plans to expand throughout the U.S. with anywhere from 15 to 18 stores. Origins of luxe: Private equity, Italy and France Behind the most successful luxury retail organizations at this juncture are private equity firms, which are maintaining-even building-brand prestige among wealthy shoppers. The top three brands in the 2008 Luxury Institute Brand Status Index (LBSI) were Bergdorf Goodman, the boutique division of Neiman Marcus Group, owned by Texas Pacific Group and Warburg Pincus; Barney's owned by Dubai-based private equity group Istithmar; and Neiman Marcus' flagship brand. All of the individual contenders this year for the top LBSI were the well-established foreign brands. In the women's luxury category were Bottega Veneta, a subsidiary of Gucci, Hermès and Valentino. Last year's number three in the luxury brands category was American-based Vera Wang. But its foray into Kohl's with a separate affordable line has apparently diminished the status of its couture division. In the men's categories, Italian brands continue to represent the highest priced, most luxury valued fashion with Ermenegildo Zegno, Armani and Brioni as the top three contenders. As foreign fashion retailers amp up their entry into the U.S. market, we are seeing a distinct breakdown in terms of market sectors categories and countries of origin. Western European designers and retailers, long associated with high-end retail in New York, continue to be identified with ultra luxury brands. Affordable chic, once the domain of U.S.-based firms like GAP, is increasingly entering our shores from such unusual origins as the BRIC countries and beyond. But whether it's Madison Avenue or SoHo; Manhattan or L.A., there is a constant influx of retailers from abroad representing the gamut of luxury and affordable chic brands. It's a healthy mix for retail and a new source for vibrancy in our economy. Faith Hope Consolo is the chairman of Prudential Douglas Elliman's Retail Leasing and Sales Division, New York, N.Y.