Destination Asia! Harrods, the renowned chain of department stores, is preparing to open its first permanent location outside of the UK in Shanghai. This marks a significant move for the company, since the closure of Harrods Buenos Aires in 1998. Harrods has been actively engaging with Chinese consumers for over a decade through various pop-up stores, but now it seems they are ready to establish a permanent presence in the country.
In a recent interview with The Telegraph, Michael Ward, the Managing Director of Harrods, expressed confidence in the decision, citing economic reports that predict Southeast Asia as the hub of growth in the coming years. He also revealed that Chinese customers currently account for 20% of spending at Harrods’ flagship store in London, highlighting the strong demand and potential in this market.
Situated in the Pudong district of Shanghai, the new retail space, called ‘The Residence’, is expected to embody the elegance of a Japanese-style villa. It will feature a carefully curated selection of luxury brands that align with Harrods’ rich heritage. The Qatar Investment Authority, which acquired Harrods in 2010, aims to tap into the customer base that drove 90% of the luxury sector’s growth in 2019. This is particularly true for the Millennial segment, which is highly concentrated in the Pudong district and conveniently located near one of the city’s international airports.
While specific details about the structure of ‘The Residence’ are still under wraps, it has been confirmed that the store will boast a private bar and a tea room. Additionally, it will regularly host exclusive events to cater to its discerning clientele. With the opening of this new Harrods store, Shanghai continues to solidify its position as a hub for prestigious European department stores, following the arrival of Galeries Lafayette in 2014.
Overall, Harrods’ expansion into Shanghai represents a strategic move to tap into the growing luxury market in Asia. By recognizing the potential of Chinese consumers and adapting to their preferences, Harrods is set to make a strong impression in this thriving market.
[Useful Link 1: Harrods’ Official Website](https://www.harrods.com/)[Useful Link 2: Galeries Lafayette Official Website](https://haussmann.galerieslafayette.com/)
