Harrods is opening an ultra-exclusive members club in Shanghai that costs from $21,000 a year and is limited to 250 people

• Harrods is opening an exclusive member's club in Shanghai that costs from $21,000 yearly.
• The club will be home to British chef Gordan Ramsay's first restaurant in the city. 
• Harrods is looking to attract China's ultra-wealthy who have an appetite for luxury. 

London's most iconic department store is making moves in China. 

Harrods announced Tuesday that it will open a new private member's club in Shanghai at the end of 2023 in a bid to appeal to the country's ultra-rich consumers. It will be reserved for 250 members and costs 150,000 yuan, or $21,000 a year.

The club, known as The Residence, is located on the second floor of Cha House – a well-known building in the middle of the city. This building is already home to Harrods Tea Room and Piano Bar, both of which are open to the public. 

Harrods said in a press release Tuesday that The Residence will host celebrity chef Gordon Ramsay's first restaurant in Shanghai to offer a high-end "British dining" experience. Members will also be able to sample some of the rarest bottles of alcohol via its partnership with Scottish whisky company Edrington Group. 

The Chinese market is an important customer base for Harrods. The company's managing director Michael Ward told Bloomberg that these shoppers made up 16% of Harrods' sales in 2022.

In the past, Chinese shoppers had largely shopped for luxury items abroad but increasingly the tide has turned, and mainland China is becoming a more important market for luxury shopping. 

"We always knew that shopping would go back to China," Ward told Bloomberg. "We want to have a base to be able to maintain that relationship as we have really great customers in China."

According to estimates from Business of Fashion, Chinese luxury spending is expected to reach $107 billion by 2025. By 2027, BoF estimates that two-thirds of luxury purchases will be made within mainland China and one-third outside.