PLBY Group has inked a new joint venture in China for its namesake Playboy brand, as the US apparel firm looks to refresh its brand presence in the Asian market.
The Los Angeles-based company said it has inked a five-year license agreement with Guandong Duhan Industrial Co., establishing a stronger manufacturing and marketing channel for Playboy-branded men’s and women’s apparel and accessories in China.
In addition, the China joint venture encompasses a new three-year license agreement for footwear, bags and specialty apparel, extends the brand’s license agreement for underwear and enters into a new event and venue license agreement that will bring Playboy-branded venues to Chinese customers in major cities, including Shanghai, Beijing and Hangzhou.
Under the agreement, Duhan will license select Playboy intellectual property in China for certain men’s and women’s apparel and accessories and cannot sublicense without the express approval of the China joint venture. The Chinese manufacturer is also required to pay minimal royalties of approximately USD$37M over the five-year term, as well as any excess royalties. The new license partially replaces a terminated license agreement.
