Luxury department store Harrods is expected to open its private member club in Shanghai at the end of the year reflecting the growth potential of the Chinese market.
The club, called Harrods The Residence, will be located in Jing’an district in downtown Shanghai.
The private club will welcome only 250 members in the first year, with annual membership fees set as CNY150,000 ($20,900), according to Michael Ward, MD of Harrods.
Members will be provided black tier status at Harrods in London and access to its aviation, estates, and interior design services.
About 16 per cent of Harrods’ income came from Chinese consumers last year, Ward stated, adding that growth potential of the market after Covid-19 is still untapped.
Chinese consumers purchased a total of CNY956 billion worth of luxury goods in 2022, accounting for 38 per cent of total global luxury retail sales, findings from market research firm the Yaok Institute shows. The figure is expected to reach 60 per cent this year.
However, there will not be a brick-and-mortar store in China, as “there will only be one Harrods”, which is located in Knightsbridge, London, said Ward.
Founded in 1849, Harrods is now home to more than 3000 brands and 20 high-end restaurants.
Its members globally are made up of professionals and high net-worth individuals aged between 30 and 50.
