The Luxe Starts Here

The developers were armed with statistics. According to a 2003 analysis provided by the Chevy Chase Land Co., 44 percent of the households within a three-mile radius of the development rank within the top 1 percent of affluent families. Some of them were traveling to New York and other major cities, sometimes twice a month, just to shop.

"All these retailers, their lists indicated their customers were already here," Asher said.

Meanwhile, Tysons Galleria was busy courting similar luxury stores under the management of General Growth Properties. Over the past three years, it has added Burberry, Chanel and Versace. Nearby at Fairfax Square, are Gucci, Hermes and Tiffany's -- all of which helped set a new standard for luxury shopping in Washington.

But it takes more than a high concentration of wealth to sustain the high-end industry. In fact, it takes a very small dose of extreme wealth.

According to the Luxury Institute, a consumer behavior firm focused on shoppers in top tax brackets, truly upscale retailers have a 20-80 rule: Twenty percent of their clients account for 80 percent of their profits. For some, the breakdown is closer to 10-90.

"Those are the ones who make or break luxury brands," said Milton Pedraza, chief executive of the firm. "It's not the ones who are stretching."

He said the truly wealthy have a net worth averaging about $3.1 million, which translates into an annual household income of $256,000 or more. According to market research firm Claritas, nearly a quarter of Washington area households earn between $100,000 and $249,999. But only 2.4 percent earn between $250,000 and $499,999. Just 1 percent make more than $500,000.

Asher and Karabassis are hoping that's enough to support the Collection. In fact, Karabassis has an $8,000 sable-and-cashmere coat riding on that hope. Marla Sabo, president and chief operating officer of Christian Dior North America, said the company's executives entered the market when they realized how many of their customers lived in the Washington area.

"We know they're shopping," she said. "They're loyal. They're repeat clients that are shopping internationally."

D.C. Aesthetic

There is little debate over the fact that retail in the Washington area has vastly improved, with The Collection as the icing on the cake. But there is some question about how much shoppers are willing to spend.

Across the country, sales of luxury goods have played a significant role in boosting the national economy, particularly during the holiday season. But while sales growth remained strong last Christmas, it was down from previous years.

Buscher of Urban Chic said that the average purchase at her boutique in Georgetown is between $300 and $400. But every weekend, there's always at least one customer who drops $2,000 or more. Once, a Georgetown student spent $8,000 in one swoop, then came back the same day and spent $2,000 more. Nicole Kidman, the Bush twins and Danielle Steel have all dropped by.