Dec. 3 (Bloomberg) -- Tom Ford, the designer who revived Gucci Group in the 1990s, said he plans to open two outlets of his year-old retail venture in Moscow next year.

Ford and franchisee Mercury Group will offer $5,000 custom- made men's suits in stores planned for September on Tretyakovsky Passage, a city-center lane of boutiques, and Barvikha Village on the capital's fringe.

The Moscow Tom Ford shops would carry exclusive items for the local market, including sable hats. The designer opened his first store on New York's Madison Avenue a year ago, aiming to capitalize on global demand for luxury goods that has swelled the industry's annual revenue to about $250 billion, according to consulting firm Bain & Co. in Boston.

``You should feel like you're in Moscow'' at the stores, the 46-year-old Ford said in an interview. ``Russians are hardwired to appreciate the fine things in life. They have been denied nice things for years.''

The brand will focus on men's wear and accessories, Ford said. Domenico De Sole, who as chief executive officer of Gucci Group revived the Italian label with Ford, is now chairman of Tom Ford International.

Luxury brands including Louis Vuitton, Ferragamo and Burberry are all expanding in Russia as the country's 2.5 billion-euro luxury goods market has almost tripled in the past five years. It's expected to gain about 30 percent a year as oil-fueled growth swells incomes at a faster pace than any country in the European Union, according to Bain data.

U.S. `Last Century'

``Emerging markets are the future,'' the designer said after his speech at a Moscow conference organized by the International Herald Tribune. Ford, raised in Texas, called Americans ``so last century.''

Ford, who is president and chief executive officer of his company, plans to open his first directly operated store after New York on Via Verri in Milan this summer as his retail expansion focuses on markets outside the U.S. Franchises also are planned from Beijing to Dubai.

Mercury, whose other Russian franchises include PPR SA's Gucci, said on Nov. 22 that it expects sales to rise 50 percent in 2007. Its Tretyakovsky Passage development includes Bentley and Maserati dealerships as well as fashion outlets.

There are more than 33 billionaires and more than 90,000 people with wealth of more than 1 million euros in Moscow, while more than 200,000 Russians have annual incomes of more than 130,000 euros, a report from Bain shows.

Ford has signed accords with Italian men's wear maker Ermenegildo Zegna SpA to produce his clothing and with Estee Lauder Cos. for fragrances.

To contact the reporter on this story: Sara Gay Forden in Milan at sforden@bloomberg.net

Last Updated: December 2, 2007 18:04 EST