It will be Mothercare's first non-franchise venture outside the UK and the retailer intends to develop a national presence in China over five years.
Mothercare will hold a 30 per cent stake in the venture and Goodbaby will have control of the remaining 70 per cent. Three trial stores - two in Shanghai and one in Beijing - will open in spring 2008.
Mothercare chief executive Ben Gordon was confident that the retailer's brand and Goodbaby's distribution networks and local knowledge would prove a successful combination. 'We know that our brand travels well and Goodbaby is the perfect partner with which to enter the Chinese market, where we see significant opportunity to grow and develop a strong presence,' he said.