[Super Rich] 'Zhong Buja Mo-yeora'... Harrods Department Store in UK Launches Exclusive Services for Wealthy in Shanghai

Year-End Club Service Opening in Shanghai
Annual Fee as Low as 26 Million KRW
Luxury Market Booms Despite Weak Economic Recovery in China

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Harrods, the luxury department store in London, UK, is launching an exclusive service targeting the wealthy in Shanghai, China. Although China's economic recovery is slowing down, there is an underlying belief that the market targeting the top 1% wealthy will continue to grow.

According to Bloomberg on the 17th (local time), Harrods plans to offer a club service called 'The Residence' at the Central Shanghai Heritage Building in Shanghai starting from the end of this year.

To use this service, an annual membership fee of at least 150,000 yuan (approximately 26 million KRW) must be paid. The number of members is limited to a total of 250. Even then, membership is only possible with a recommendation from an existing member.

Chinese consumers who join as members of The Residence Club will be offered premium travel options and real estate services. Members will be able to use the restaurant of the famous British chef Gordon Ramsay, which is opening in Shanghai for the first time. They will also experience rare liquors provided through Harrods' collaboration with the Scottish whisky company Edrington Group and enjoy global concierge (hotel-style customized) services.

Michael Ward, Managing Director of Harrods, said, "There are truly excellent customers in China," and added, "We want to build a foundation to maintain this relationship." He further explained, "People no longer want to flaunt their wealth as before. They value being with like-minded people more."

This is the first time Harrods is introducing such a service outside the UK because Chinese consumers have established themselves as the most purchasing-powerful luxury consumers worldwide. According to the global accounting and consulting firm PwC, China accounts for one-fifth of the global luxury market, which is worth $325.4 billion (approximately 410 trillion KRW). Last year, Chinese customers accounted for 16% of Harrods' sales.

In particular, wealthy Chinese consumers who had spent a lot of money overseas have expanded their consumption mainly within their own country since the COVID-19 pandemic, leading global luxury brands to expand their operations in mainland China. Louis Vuitton Mo?t Hennessy (LVMH) relocated resources such as staff from Hong Kong to mainland China, Herm?s opened new stores in China, and the online luxury platform Mytheresa opened its first Asian office in Shanghai last year.

This movement by global luxury brands is even more notable as it contrasts with the recent sluggishness in China's economic recovery. China's GDP growth in the second quarter of this year was 6.3% year-on-year, falling short of the market forecast of 7%.

Managing Director Ward said, "Harrods serves the top 1% wealthy worldwide," adding, "If we were in the (mass) middle market, we would not do this." He emphasized, "We know that wealth in China will grow," and "We will continue to focus on relationships with the very best of the best."