For Italian fashion designer Anna Molinari, Miami was the perfect fit for the opening of Blumarine's first U.S. store.
She believes women here share her taste in fashion and a lifestyle similar to that of her native Italy. Molinari's newest collection seems well-suited for South Beach with silk caftans in a rainbow of vivid colors like lime green, bright orange and hot pink.
''Miami is very close to Blumarine's style,'' Molinari said during a visit to celebrate the store opening at Village of Merrick Park in Coral Gables. ``Women here are very extroverted. It's a way of living, not just dressing.''
Miami's reputation as a place for the hip and trendy, coupled with our influx of international visitors, are two reasons Blumarine and other specialty stores are increasingly choosing South Florida as a launching pad or key market for a U.S. expansion.
Spanish designer Adolfo Dominguez opened its flagship store in November at Village of Merrick Park in Coral Gables and has locations in the works for Aventura Mall and Sawgrass Mills. Canadian retailer Fruits & Passion opened its third U.S. store last October in Aventura Mall.
Coming in the next few months to Village of Merrick Park are Brazilian designer Carlos Miele and Chile's Mosso. Spanish jewelry company TOUS got its U.S. start in Aventura Mall in 2002, and today Florida is one of its top U.S. markets. And that's just a sampling, nor does it include the international mega-brands that have always filled the Bal Harbour Shops.
The reason for the interest comes down to economics.
STILL WEALTHY
''While Florida is certainly suffering from the economic slowdown, it's still one of the most solid consumption markets going,'' said Stan Eichelbaum, president of Marketing Developments, a retail consulting firm. ``It's a strong market for wealth.''
What's happening in Miami is also part of a bigger move toward globalization that has retailers -- including those in the United States -- searching for new markets worldwide. Industry experts say it's a trend that bodes well for consumers tired of the same old places to shop.
Aventura Mall and Merrick Park have both been working harder in recent years to court more international brands, as a way to differentiate their tenant mix.
''Our American retailers have plumb run out of new ideas,'' said Kurt Barnard, president of Barnard's Retail Trend Report, a retail consulting firm. ``Regardless of where you look, there's no novelty, no excitement. That's opened the door for these European and Asian retailers who are willing to experiment.''
South Florida's position as a gateway to Latin America and the Caribbean helps this market serve as a bridge for many retailers. For those that already have stores in Latin America, opening in Miami ensures built-in name recognition and a customer base familiar with the product.
For retailers with no existing base in Latin America, Miami provides simultaneous exposure to the United States and other countries because shopping is such a key component of South Florida's tourism industry.
NEVER AT A LOSS
''We're being fed by 35 or 40 different countries,'' said Arthur Weiner, principal of AWE Talisman, who has done leasing for several major South Florida malls. ``There's never going to be a loss of visitors. If the economy is bad in Argentina, then it's good in Brazil.''
When Spanish retailer Mango opened MNG by Mango on Collins Avenue in South Beach just over a year ago, the store quickly became one of the top five performers among the company's 18 U.S. locations. By comparison, in Chicago it took a year to get enough people to even recognize the brand name.
''Brand building is something that takes time,'' said Jose Gomez, senior vice president of business development for MNG by Mango. ``The U.S. market is very competitive. You need to develop more than just a beautiful store.''
But as happy as Mango has been with its performance in South Beach, the company has been slow to open additional stores because of the difficulty securing real estate. Gomez would like to open stores at Dadeland Mall, Aventura Mall and Town Center at Boca Raton, but has turned down locations because they weren't in high-traffic spots. MNG by Mango did open its first U.S. outlet earlier this year in Sawgrass Mills.
''Location is very important when you're trying to build brand awareness,'' Gomez said. ``In the U.S., a lot of people don't know Mango that well. If you're not in the right place, it takes even longer.''
Mango has moved quickly in the last two years to catch up in the United States with its competitors, who have led the globalization move for much of the last decade. Sweden's Hennes & Mauritz (H&M) and Spain's Zara each have dozens of stores in the United States. Both have gained fans for their affordable pricing and ability to take styles from the runway to stores in just weeks.
Zara was one of the first international brands to set its sights on South Florida, making this the chain's second U.S. market after New York and one of its top expansion priorities. Since opening at Aventura Mall in 2001, Zara has added stores in Dadeland Mall, Collins Avenue in South Beach, Orlando and Palm Beach Gardens.
By comparison, H&M has yet to sign a lease in South Florida. Industry experts say the problem is finding space for several locations in this market to open at roughly the same time.
''Miami is a market we are definitely looking at,'' said Lisa Sandberg, U.S. spokeswoman for H&M. ``We'll wait until a really good property opens up.''
Some international brands choose to build their names in the United States first through wholesale and the Internet.
INTERNET FIRST
That's how the Canadian company Fruits & Passion started. Before opening any U.S. stores, the brand was sold in more than 1,000 locations including Sur La Table, Anthropologie and independent gift shops. U.S. customers -- including celebrities like Paula Deen and Rachael Ray -- have already become fans of the Canadian company's products that range from body care to home ambience.
When the brand opened its own store in Aventura Mall in October, it was only the retailer's third U.S. location. To help develop business, the company partnered with local charity events, built a customer database and held in-store events, said Heather David, director of U.S. business development.
''We see the U.S. as a huge opportunity,'' David said. ``Once the consumer discovers Fruits & Passion, they become quite loyal. But we're not waiting for a customer to walk in and discover us.''
The increasing influx of international retailers in South Florida is a sign of how much the area has grown up in the last decade as a retail market. While we've always had strong retail sales, only recently has Miami become known as a fashion leader.
Today, Miami ranks up at the top of the list for many fashion-forward brands, along with New York or Los Angeles. Five years ago, many brands would typically go first to markets like Dallas or Chicago.
''As a city we've become more sophisticated in every way,'' said Maria Llorca, senior marketing manager for Merrick Park. ``We're benefiting from the progress in Miami.''
COMFORT LEVEL
Often, the retailers who feel most comfortable in South Florida are the Latin brands, who don't have to make as many changes in their product mix because they already understand the culture and the climate.
Brazilian designer Carlos Miele, whose clothes have been sold at Neiman Marcus and Saks Fifth Avenue, will open his second U.S. store at Merrick Park in May. The only other location is in New York, but the Miami store will be the first to focus on the Miele line.
'Carlos' designs are very sensual, very tropical and very colorful,'' said Alex Berger, who will operate the Coral Gables store as a licensee for Carlos Miele. ``It's a perfect fit. The Miami woman is very body conscious and very sensual.''
While we may not have the brand-building cachet that goes with a New York flagship address on Madison Avenue or Fifth Avenue, industry experts say a store in one of Miami-Dade's key malls might be a better investment.
$2,000/SQUARE FOOT
That's because no matter how expensive real estate has become in South Florida, it doesn't come anywhere close to the $2,000 per square foot of prime Manhattan space.
''In Miami you still have great retail sales and lots of brand awareness without having the overhead of operating in New York City,'' said Cynthia Cohen, president of Strategic Mindshare, a national retail consulting firm with offices in Miami. ``You can make money in a Miami store, and you can't always make money in New York City.''
But building a new brand in the United States doesn't come without challenges, such as learning the differences in fashion tastes, climate and sizing. Add to that millions of dollars for advertising and marketing, which smaller brands often don't have.
Today, the declining value of the dollar makes it more difficult. A U.S. licensee who has the rights to sell the brand must buy merchandise in euros from the parent company. The choice: raise prices or cut profits.
Filippo Alzetta, who opened the Blumarine store in Merrick Park and holds the licensing rights for certain U.S. markets, doesn't think there's much choice when you're trying to build a new business.
''You have to lower the markup so the American public can afford it,'' Alzetta said. ``Things are expensive, but I don't want people to think we are thieves.''
TESTING GROUND
Many tenants view the South Florida malls as a good testing ground for a new concept because of the area's diversity.
''If you open in a mall like Aventura and you're successful, you can have access to a lot of other malls in the United States,'' said Dan Abouaf, who will open the first U.S. locations for La Martina and Victoria Couture later this year in Aventura Mall.
THE TOUS MODEL
In some ways, Abouaf's dream is what happened for TOUS, which started its U.S. expansion by opening in Aventura Mall in October 2002, then Orlando and Dadeland the following year. Today, the Spanish jewelry and accessory company has 22 U.S. stores, which represent about 30 percent of the worldwide sales.
Once customers in South Florida became familiar with the company's signature teddy-bear products, business took off.
''The sales went up about 100 percent in two years,'' Cristina Campello, part owner of TOUS stores in Florida. ``That hasn't happened in other places in the U.S.''
The test has also paid off for Feraud, which opened its first store for sleepwear and swimwear in the United States at the Colonnade Outlets at Sawgrass in 2006. Now, the brand is looking for other U.S. mall stores.
''It was a great base point to reflect if that type of product would work in the U.S.,'' said Margery Cohen, consultant for Feraud. ``We learned that this type of store can hold its weight.''
