Toy manufacturer Mattel announced on Tuesday a strategic partnership between its educational toy brand Fisher-Price and the Chinese domestic clothing brand Three Gun Group.

Under the partnership, the two companies will launch their first co-developed product line of newborn and infant clothing. The product-line for Chinese infants and toddlers includes underwear, indoor clothing, outdoor clothing and accessories.

Mattel will grant the licensing of the Fisher-Price brand while Three Gun will be responsible for the manufacturing. It is Fisher-Price's first comprehensive cooperation with a Chinese garment brand.

The first batch will be put on the market in September, with distribution ranging from Three Gun's 5,000 channels all over the country, as well as the online and offline platforms of both companies. Three Gun will roll out a specific online flagship store for the sales of this product line.

Cao Chunxiang, deputy manager of Three Gun Group, said that the company used to focus on clothes for 4 to 14-year-old children. The company reached sales revenue of 250 million yuan ($37 million) in 2016.

With the deal, he said Three Gun will be able to break new ground in the infant and toddler industry.

According to Jeff Wang, vice president of Mattel greater China, the partnership is a recognition of the company's strong licensing capabilities, and also an opportunity to fulfill Mattels' promise in "advancing infant/toddler development for the Chinese market".

"In the past few years, Mattel has witnessed double-digit growth in China with the licensing business volume increasing threefold in the past three years," he said.

Mattel will increase its investment in the Chinese market in the future given the opportunities provided by the two-child policy and the ongoing consumption upgrading, he added.