On-air wear.

Argentine clothing company Kosiuko a few years back won the envy of the fashion industry. The 11-year-old clothier sent garments to U.S. pop star Britney Spears, who wore them on her Overprotected video. Now Kosiuko, run by the husband-and-wife team of Federico Bonomi and Cynthia Kern, is spinning a new marketing method in fashion: Dress the music stars, record and release original music and air it all on its own radio station--KSK Radio.

The business logic is compelling. First, it broadens income sources beyond clothing. KSK Radio is pulling in advertising revenues from Coca-Cola, Philips and other big names keen on reaching Kosiuko's trendy teen and university-age customers. Radio also reaches far more people than any ad campaign, and it provides steady exposure that is cool and energetic.

The impetus for this move into entertainment came largely from Argentina's economic crisis. With sales slowing for its pricey clothes--a mix of hip-hop, urban and retro styles--Kosiuko had to diversity. In 2003, it launched KSK Radio and opened KSK Bar, a trendy spot for summer partying in Punta del Este, Uruguay's famous beach town. In 2004 it began KSK Records, releasing a dance album with funk and '80s rock influences.

"The most important thing is that Kosiuko has stopped communicating with 30-second commercials. It is now 24 hours," says Rodrigo Figueroa Reyes, a marketing expert and partner in Kosiuko's entertainment venture. Shopping, too, is to become a fuller experience. It aims to transform some of its stores--180 domestic and 30 abroad--into places to "experience the brand," he says. Shoppers will be able to flick through racks of clothes and CDs, hang out, drink and listen to KSK Radio.