Retailer Wempe Is Looking on the Bright Side

Wempe has come a long way since its founding in the latter half of the 19th century. Besides its 30-plus showrooms across the globe, the fifth-generation family jewelry and watch business commands more than 5,000 square feet on New York’s Fifth Avenue, incorporating Patek Philippe and Rolex boutiques and a broad range of diamond jewelry, including its own brands.

Both the flagship destination and the company’s international stores have contributed to steady year-on-year growth, according to Wempe vice president Michaela Kesselman, who is also director of jewelry. Business has been particularly promising in 2024, she reports, even — or perhaps especially — with the decline in diamond prices.

“Currently we see an opportunity in the diamond market with prices being down [by] about 20% over the last couple of years,” explains Kesselman. “Where others see a risk, we see the chance to restock our inventory, to replenish. What keeps me up at night is thinking about…what we can create, and what we can do to stand out.”

Crowd-pleasers

Differentiation is a shared goal for Kesselman and company chief executive Kim-Eva Wempe. Both agree that natural-diamond demand is on the rise. Wempe-branded lines such as the By Kim collection push a sense of exclusivity without veering far from the classic silhouettes and styles that customers love, like solitaires and stacking rings. Similarly, the patented Wempe Cut adds a point of difference to the jeweler’s bridal lines, with 80 more facets than a brilliant-cut diamond.

Wempe also knows when to supplement its in-house offerings with trending brands. Recently it has taken on German designer label IsabelleFa, with its chunky chain necklaces and bracelets. These now sit alongside lines by Messika, NeverNoT, Boucheron and Piaget.

Kesselman seeks “that perfect balance” between Wempe’s in-house creations and the brands it stocks. “As we have continued to grow strongly over the last few years with fine and high jewelry, it has to be a natural match.”

Listen and learn

Wempe is also focusing on the next generation of diamond-jewelry shoppers, including young millennials and the emerging Gen Z. Kesselman believes navigating this “new era of shopper” is achievable if retailers can embrace the personalities they encounter and acknowledge the desire for self-expression. Younger customers “want to wear a piece of jewelry that resembles their lifestyle, who they are, and what they are aspiring to be,” she says. “This is something we must learn to listen to.”

Yet despite the push toward individuality, Kesselman cites classic diamond tennis bracelets and necklaces as big hits among her younger clients.

“Future shoppers understand value retention,” perhaps better than their predecessors, she explains. They also realize “that there is a cost [to] quality.” Luxury staples like tennis bracelets tap into this mind-set and appease a consumer who Kesselman says is “no longer looking for fast-paced fashion.”

Class in session

Besides learning more about its customers, Wempe is committed to educating them. Kesselman takes her role as natural-diamond teacher seriously. “In our industry, we all have to put the work in to educate our clients and future clients about why natural is the way to go,” she says.

Wempe does not stock synthetic diamonds. Still, Kesselman sees it as her “direct responsibility” to give her customers information about them so they can make their best purchasing decisions. This is especially true at the more cost-effective end of the market.

Even as a high-end luxury business, Wempe’s goal is a long-term relationship with its customers. “A client who is purchasing a 0.20-carat diamond is [still] very important, because we see a future vision with [that client],” explains Kesselman. “When we are able to create [a connection with] a client through their engagement diamond, they [have] awareness of the jewelry sector for the birth of their baby, future anniversaries, the holiday season.”

Milestone moments

Looking ahead, Wempe is preparing to turn the spotlight on its By Kim collection, which will celebrate its 25th anniversary in 2025. The brand will also toast 45 years in New York next year.

Despite its longevity on Fifth Avenue, Wempe has no plans to expand its US footprint beyond Manhattan. That doesn’t mean growth isn’t on Kesselman’s mind; Wempe’s “outreach could certainly grow in many environments,” she says. But it would have to enable the jeweler to cater to new customers in the right way.

“We want it to be understood that we are a family business, and we want to keep it as such,” states Kesselman. “We are not looking to commercialize this message.”

Main Image: Wempe store on New York’s Fifth Avenue. (Wempe)

This article is from the October-November 2024 issue of Rapaport Magazine. View other articles here.