Merino & Co. has secured a significant distribution agreement with a Shanghai-based omni-channel partner, committing to annual sales of approximately A$1.5 million and expanding its footprint in China’s luxury fashion market.
- New distribution agreement with Shanghai omni-channel partner
- Annual committed sales of CNY ¥7 million (~A$1.5 million)
- Full Merino & Co. product range to be sold under own brand across China
- Expands access to China’s US$14.89 billion luxury fashion market
- Builds on existing partnership with BINJORA
Merino & Co. Strengthens China Presence
Australian wool apparel company Merino & Co. (ASX – MNC) has taken a decisive step to deepen its foothold in China’s luxury fashion sector by securing a new distribution agreement with a Shanghai-based omni-channel partner. This deal commits to annual sales of approximately CNY ¥7 million, or around A$1.5 million, marking a meaningful revenue baseline for the company in one of the world’s most lucrative consumer markets.
The agreement will see the distributor launch and scale Merino & Co.’s full product suite across China under the ‘Merino & Co.’ brand. The distributor’s extensive omni-channel network spans major shopping malls, national broadcast channels, and leading e-commerce and social platforms such as Pinduoduo, Douyin, and WeChat. This broad reach provides Merino & Co. with immediate access to a diverse and multi-format consumer base without the need for heavy upfront investment.
Building on Existing Partnerships
This new agreement complements Merino & Co.’s earlier partnership with Jiangsu BINJORA Era Garment & Apparel Co., Ltd, announced in September 2025. BINJORA, a brand under Bosideng International Holdings Limited, has already demonstrated early demand with an initial order exceeding A$50,000. Together, these partnerships position Merino & Co. to scale its brand rapidly and responsibly in China’s US$14.89 billion luxury fashion market.
Managing Director Fiona Yue highlighted the strategic importance of this development, stating that the agreement provides a committed revenue base and a meaningful footprint across China’s key retail and digital channels. She emphasized the company’s readiness to capitalize on the long-term potential of the Chinese luxury apparel market.
Strategic and Financial Implications
The agreement includes standard commercial terms with no material upfront capital obligations, allowing Merino & Co. to maintain full ownership of its intellectual property while expanding its brand presence. The partnership’s omni-channel approach aligns with evolving consumer behaviors in China, where digital and physical retail channels increasingly intersect.
Merino & Co.’s vertically integrated business model, encompassing design, manufacture, marketing, and sales of wool products, is well positioned to leverage this expanded distribution network. The company’s focus on sustainable, natural fibres such as merino wool resonates with growing consumer demand for environmentally friendly luxury goods.
As Merino & Co. continues to build momentum in China, the market will be watching closely to see how these partnerships translate into sales growth and brand recognition in a highly competitive luxury apparel landscape.
Bottom Line?
Merino & Co.’s China expansion is gaining traction, but execution and market response will be critical to sustaining momentum.
Questions in the middle?
- How quickly will the Shanghai distributor convert the sales commitment into actual revenue?
- What are the long-term plans for expanding product lines or entering new Chinese regions?
- How will Merino & Co. differentiate itself amid fierce competition in China’s luxury wool apparel market?