The launch of Mulberry (Asia) Limited is a new business agreement with Challice Limited that will operate the group’s business in Hong Kong, China and Taiwan. It will start trading in Hong Kong next Monday with a subsidiary in China and a branch office in Taiwan expected to be operational during this year once its gets the relevant business licences for those territories.
The launch will also come along with “significant” marketing investment in North Asia. In addition to local marketing initiatives, Mulberry plans to invest around £3 million in additional support over the next two years.
As an immediate priority, the brand’s store network will be added to with a new location in Shanghai as well as the relocation of its existing stores in Hong Kong and Beijing.
Interestingly the new venture is not only aimed at increasing sales within Greater China but also increasing the awareness of the brand for the Chinese purchasing abroad.
Mulberry owns 60% of the share capital of the new venture with Challice holding the other 40%. Challice already owns 56% of Mulberry’s share capital and is under the same ultimate shareholder control as Mulberry’s ‘previous’ distributor in the region, Club 21.
It will initially operate four stores (two in China, one in Hong Kong and one in Taiwan) and manage the brand’s regional wholesale ops, which are supported by the group’s Chinese language mulberry.com site and omnichannel platform throughout the region.
Mulberry CEO Thierry Andretta said the firm sees significant growth opportunity in the region.