Luxury retailer Dickson Concepts (International) is to lose the license to sell "Polo" and "Ralph Lauren" branded products from 1 January 2010, it said on Friday (13 February).

The decision is part of plans by Polo Ralph Lauren Corporation to take direct control of its wholesale and retail distribution in South East Asia following similar moves in Europe and Japan.

As part of the agreement, Polo Ralph Lauren will pay US$18.2m for the loss of the license in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand and the People's Republic of China.

To make up for the loss of revenue, Dickson Concepts plans to add new brands to its portfolio which also includes Brooks Brothers, Tommy Hilfiger, Seibu and Harvey Nichols department stores.

Earlier this month New York based Polo Ralph Lauren posted a 7.1% drop in third quarter profit to US$105m, as sales fell 1% to $1.25bn, and reduced its full-year revenue guidance.