Gerhard D. Wempe GmbH & Co. KG, a family-run enterprise, has reported a nearly record-breaking revenue for the past financial year, showing remarkable resilience despite market challenges. With plans for moderate growth and staff expansion in the current year, the company remains optimistic about its future.
After a record-setting year in 2022, Wempe’s global revenue decreased by 4.8% to €652.3 million in the last financial year. The German market saw a minor decline of 1.4%, significantly less than the 17.3% decrease abroad, primarily due to the closure of the London showroom in March 2023. However, the robust performance of German showrooms nearly offset this downturn, and the company expanded its workforce from 827 to 861 employees.
The new fiscal year started positively for Wempe. “During the first half of 2024, we’ve achieved a slight increase in revenue, as planned,” stated Kim-Eva Wempe, the owner and managing partner. Jewelry sales were particularly strong, with a nearly 20% increase in revenue. For the current year, Wempe anticipates a low single-digit revenue growth, supported by slightly higher economic growth forecasts and a significant drop in inflation. The company plans to hire close to 100 new employees.
Key Success Factors and Market Dynamics
Wempe’s jewelry is available both in showrooms and online. A selected range of the By Kim brand jewelry is also offered through Breuninger’s website. While the average retail price of jewelry is lower online compared to in-store, leading to a 5.49% decrease in the average purchase value, overall jewelry revenue increased due to higher sales volumes. Revenue per employee decreased by 8.1% to €836,000, and revenue per square meter fell by 1.7% to €87,000.
Watches continue to dominate Wempe’s revenue, accounting for 82.3% of total sales. The Iron Walker line from Wempe Glashütte I/SA and special editions like the Iron Walker Dynamo Dresden have been particularly successful. The average price per sold watch increased by 5.07% to €11,367.
Personalized advice remains a crucial success factor. “The stationary retail trade, with the range of advice and services it offers, continues to play the most important role in the watch and jewelry sector,” emphasized Kim-Eva Wempe. She noted that Millennials and Gen Z view watches and jewelry as expressions of individual personality rather than mere luxury items. “This group of customers would like to be addressed in terms of their individual needs, approached on an emotional level, and advised with empathy — at all of the analog and digital touchpoints.”
Leadership and Strategic Development
Kim-Eva Wempe has successfully led the company since taking over from her father, Hellmut Wempe, in 2003. Under her leadership, revenue has nearly doubled, and the number of employees has more than quadrupled. The company operates one of Europe’s largest independent watch workshops and has developed a strong expertise in jewelry production.
The company is addressing the shortage of specialists, particularly in sales and watchmaking, through flexible working times, attractive salaries, high-quality training, and a supportive corporate culture. Despite the challenging environment, Wempe increased its staff by over 4% last year and plans further expansion.
Future Outlook and Market Growth
Wempe is optimistic about the growth of the luxury goods market. Experts predict that the market for personal luxury goods will grow annually by 3% to 8% until 2030, reaching a total volume of €540 billion to €580 billion. Wempe aims to continue growing and enhancing its position as a leading jeweler. The company plans to expand selected showrooms and adapt to the evolving needs of its customers.
Wempe is also committed to sustainability. The company developed a Code of Conduct in 2019 to ensure social and environmental responsibility. In compliance with the EU’s Corporate Sustainability Reporting Directive (CSRD), Wempe will present a sustainability status report from 2026 onwards.
Conclusion
Wempe’s strategic leadership and commitment to personalized customer service have enabled it to navigate market challenges effectively. With a focus on sustainable growth and innovation, the company is well-positioned to continue its legacy of excellence in the luxury watch and jewelry industry.
For further information, please visit www.wempe.com.
