Harrods to open in Shanghai, more UK companies focusing on China’s consumer market

27 January 2020

London-based superstore Harrods is setting up the company’s first overseas store in Shanghai after consideration of other major international cities, including New York and Paris.

Harrods’ Managing Director Michael Ward stated that after 10 years of doing business in China, the company decided to increase their investment through a permanent establishment in response to the increasing luxury appetite and a growing middle class in China, in an interview with The Telegraph.

Ward said he believed the store would be particularly popular with younger consumers.

“If you look at all of the reports, they say, quite categorically that all of the growth in the next five years is going to come from south-east Asia. And is going to come from millennials.”

“So we’ve got to go after that. It’s very important that you follow the money.”

“We see continued growth of China, but we see a need to be a more permanent resident in China.”

Harrods’ store will be called “The Residence” and serve as a site for high-end private shoppers, providing a bar, tearoom, and event site for luxury brands. The store is set to open in 2020 and will be based in the wealthy Pudong district of Shanghai.

Harrods has mounted its efforts to attract Chinese consumers to its London store over the years. It officially accepts China UnionPay and Alipay as payment methods and has set up Chinese signage to help customers navigate their Knightsbridge store.

Harrods is also active on Chinese social media with an official WeChat account.

Kindly supplied by Dezan Shira & Associates.

Follow Chamber International on Twitter @ChamberInt and on Facebook for the latest in international trade.