Mulberry Group, Challice Ltd launch Mulberry Asia

It said this was, as previously communicated, a new business agreement with Challice Ltd and would operate the group's business in Hong Kong, China and Taiwan.

Mulberry Asia would begin trade in Hong Kong from 3 April 2017, with a subsidiary in China and a branch office in Taiwan expected to be operational during 2017 upon receipt of the relevant business licences for those territories.

Mulberry said it owned 60% of the share capital of Mulberry Asia, with Challice holding the balance.

"Mulberry Asia will initially operate four stores (two in China, one in Hong Kong and one in Taiwan) and manage regional wholesale operations. These are supported by the Group's Chinese language mulberry.com site and omni-channel platform throughout the region," it said.

Mulberry Asia and the group planned significant marketing investment in North Asia.

"In addition to local marketing initiatives, the group plans to invest c. £3.0m in additional support over the next two years to build brand awareness in the region and capitalise on international tourist flows to the UK, Europe and North America."

In the near term, the brand's store network would be enhanced with a new store in Shanghai as well as relocation of its existing stores in Hong Kong and Beijing.

At 12:12 GMT, shares in AIM-traded Mulberry were down 0.78% to 1080p each.