The magic of exclusivity: how brands use the phenomenon of "closed clubs"

Soho House has all the obvious hallmarks of a closed club, and its slogan reads: "From the beginning and throughout our 25-year history, our members have always been at the center of everything we do."

But Soho House is not really a private club at all.

A truly private club is owned and operated by its members, who make all the decisions, from membership to the markup on wine. But that's not the case with Soho. In contrast, the 127,800 members of Soho House (and its subsidiaries) are rather themselves at the mercy of the "global club platform in physical and digital spaces" that floated on the New York Stock Exchange in June.

Soho House is not the only example. Many private hospitality businesses pose as private clubs. The Membership Collective Group took this technique to the next level with an IPO using a two-class share structure that gives the company's three main owners veto power over key decisions and the appointment of board members.

A private club traded on the stock exchange is not just an oxymoron, it is a difficult challenge: to what extent can the concept of exclusivity be exploited without negative consequences for oneself?