Mulberry to create a new business in Asia
Mulberry to create a new business in Asia
Mulberry is forming a joint venture with Challice to create a new company called Mulberry (Asia) Limited. Mulberry (Asia) Limited will focus on China, Taiwan and Hong Kong.
It has been revealed that Hong Kong will be the headquarters of the new company. Mulberry will own 60% of the joint venture and Challice will own 40%. It is worth noting that Challice is also the major shareholder of Mulberry’s distributor in the region, Club 21. The joint venture will mark an end to Mulberyy’s relationship with Club 21 as it seeks to take control of its product offering in Asia. Mulberry said the venture is expected to make a loss in the first two years and then subsequently make a profit. One of he contributing factors to the expected losses could be a re-purchase of stock from Club 21. Mulberry (Asia) Limited is expected to start running Spring 2017.
Significant investment of about £3 million is expected to go towards marketing Mulberry in Asia. This is expected to capitalise on tourists from that region visiting the UK and Europe.
As announced by the London Stock Exchange, Mulberry’s CEO Thierry Andretta stated „We are pleased to reach a new business agreement to participate directly in the North Asia region. The new company will progress the Group’s international strategy of developing its retail and omni-channel model in a key luxury market where we see significant growth opportunity.“
Mulberry to create new business in Asia
