What: Harrods has announced the launch of its first private members’ club in Shanghai that is due to open by the end of the year.

Why it is important: The department store’s new venture is on par with the trend of retailers branching out into profitable luxury non-retail areas. The brand is expanding into mainland China due to significant market potential and the growing wealth of consumers.

Harrods plans open its very first private members club in Shanghai by the end of the year which will cater to the ultra-rich with membership prices starting at CNY 150,000. The new club, The Residence, is located on the second floor of the Cha House which also houses the Harrods Tea Room and Piano Bar.

The primary round of memberships will be very exclusive and be limited to 250 members to start. Members will be able to benefit from automatic access to Black Tier status with the Harrods Rewards Program, as well as access to Harrods Aviation, Harrods Estates, Harrods Interior Design, and private shopping services at the Knightsbridge shop.

Chinese customers account for about a fifth of the global luxury market, so many top brands, such as LVMH and Hermes, are shifting their resources to focus on mainland China. Harrods is confident in the growth of wealth in China and aims to cater to the big spenders who continue to shop despite economic insecurity and youth unemployment.

Harrods to open first private China club catering to ultra-rich