Exclusive Interview | Why Is This Five-Generation German Goldsmithing Family Quietly Expanding in China?

12月 23, 2024

Recently, during a survey of high-end shopping malls featuring top luxury brands, Luxe.CO discovered a German high-end jewelry family brand specializing in gold craftsmanship—Wellendorff.

The brand’s products start at over RMB 50,000, with special jewelry pieces averaging over RMB 5 million (approximately USD 685,000). It is reported that the brand enjoys a high repurchase rate and is particularly popular among male customers.

Currently, the most globally renowned luxury jewelry brands are already familiar to Chinese consumers and firmly established in the market. Wellendorff, however, appears to be a more reserved “latecomer.”

Intrigued by the brand, Luxe.CO conducted an interview with Ouyang Yingping, Wellendorff’s General Manager for China, in the brand’s VIP room at Wangfu Central in Beijing. His insights helped us better understand:

  • Why is the brand experiencing counter-cyclical growth and planning further store expansions despite current market conditions?
  • What gives the low-profile German founding family the confidence to grow at a steady pace?

Christoph Wellendorff, the fourth-generation leader of Wellendorff, and Ouyang Yingping (left), China General Manager.

This confidence stems from the brand’s exclusive century-old goldsmithing craftsmanship, distinctive jewelry design style, and the founding family’s cherished heritage values and deep understanding of high-net-worth customers.

“Although Wellendorff entered the Chinese market relatively late, it has achieved over 100% growth in performance since 2022, with store numbers doubling. This reflects the immense demand for high-end jewelry in the Chinese market and underscores Wellendorff’s commitment to developing the domestic market,” Ouyang Yingping told Luxe.CO.

While Wellendorff has been in the Chinese market for over a decade—opening its first store at the China World Hotel in Beijing—the brand has only recently begun accelerating its efforts.

This year, Wellendorff opened three new boutiques in Beijing Wangfu Central, Shanghai Nanjing West Road, and Wuhan SKP. With six boutiques in the Chinese Mainland, these account for one-third of Wellendorff’s global store count.

Wellendorff Boutique at Beijing Wangfu Central

Caution may be characteristic of many family-run brands, but underlying this approach is a commitment to long-termism by this 131-year-old, five-generation family business.

So, what underpins Wellendorff’s low-key confidence and long-term perspective?

The Cradle of Goldsmithing in the Black Forest of Baden-Baden

When people think of high-end jewelry and gold craftsmanship, France and Italy often come to mind. However, the southwestern German region of Baden-Baden’s Black Forest, specifically the town of Pforzheim, boasts over 240 years of gold jewelry manufacturing history. Since the 18th century, Pforzheim has been a hub for Europe’s jewelry and watchmaking industry.

In 1768, the world’s first vocational school for goldsmithing and watchmaking was established here. In the 1990s, Pforzheim University followed up by founding its Jewelry Technology Research Institute.

Despite its small population of around 100,000, over 10,000 Pforzheim residents are engaged in the jewelry and watchmaking industry. The town produces 70% of Germany’s gold jewelry annually, earning it the title “City of Gold.”

It was also in this “City of Gold” where German jewelry brand Wellendorff was founded in 1893.

The brand’s founder, Ernst Alexander Wellendorff, graduated with honors from the Grand Duke of Baden’s Academy of Fine Arts and established his brand in Pforzheim. His creations quickly gained favor among British royalty, Russian aristocrats, and German nobility who frequently visited the Baden region.

In addition to gold jewelry, Wellendorff earned acclaim for crafting watch bracelets for luxury watch brands. Prestigious names like Patek Philippe, A. Lange & Söhne, and Breguet have been clients of Wellendorff’s bespoke watch bracelets.

Among watch collectors and industry professionals, Wellendorff is celebrated as the “Patek Philippe of the jewelry world,” and its bracelets are regarded as “the finest precious metal watch bracelets ever made.”

At this year’s Geneva “Watches and Wonders” exhibition, Patek Philippe unveiled its new Golden Ellipse Ref. 5738/1R-001 watch. The standout feature of this timepiece is its newly designed chain-link bracelet, crafted in collaboration with Wellendorff.

Patek Philippe Golden Ellipse Ref. 5738/1R-001

Notably, this is the first time Wellendorff’s logo has been engraved on a Patek Philippe bracelet, symbolizing their mutual recognition of exceptional craftsmanship and a trusted partnership.

In the 1960s, Hanspeter Wellendorff, the third-generation heir, took over the family business and began modernizing and branding it. His most significant contribution was the creation of the diamond “W” logo.

Today, every Wellendorff piece features this logo, embodying the founding family’s core philosophy of Wahre Werte (German for “True Values”)—a commitment to sincerity and authenticity.

The brand is currently led by fourth-generation family members Christoph Wellendorff and Georg Wellendorff, who respectively oversee sales and marketing, as well as production and administration. Christoph’s daughter, Katharina Wellendorff, representing the fifth generation, has officially joined the family business and is responsible for boutique operations.

What Reflects Wellendorff’s “True Values”?

In Wellendorff’s recently published brand book, Wellendorff: The Jewellery, one quote by Oscar Wilde stands out: “Perfection is the artist’s goal.” This perfectly encapsulates the brand founder Ernst Alexander Wellendorff’s philosophy of striving for perfection in everything.

Signature creations like the rotating rings with independently spinning layers, silk-like woven gold necklaces, and elastic gold bracelets that return to their original shape without external assistance are cherished examples of Wellendorff’s relentless innovation in craftsmanship.

During our interview, we noticed that Ouyang Yingping was wearing his Wellendorff wedding ring, which he had purchased over a decade ago. The ring remains as shiny as new thanks to the brand’s unique cold enamel technique. “For every piece, we prioritize comfort, long-term durability, and timeless style,” he shared.

In 1993, Wellendorff exclusively developed its cold enamel technology. This process delivers exceptional elasticity and toughness, making the enamel highly resistant to wear and everyday impacts, ensuring the jewelry remains pristine even with frequent use.

Wellendorff “DELIGHTFUL FLOWERS” Rotating Ring

Since its introduction 47 years ago, Wellendorff’s iconic woven gold craftsmanship has undergone four iterations. The intricate process involves repeatedly heating and compressing gold rods until they are stretched into 0.3mm threads. These threads are then meticulously hand-wound onto a tool without gaps, giving Wellendorff’s woven gold jewelry its unparalleled silky texture.

This level of refinement has earned Wellendorff the title of “the only jewelry in the world that can be recognized with closed eyes.”

Wellendorff Woven Gold Necklace

In 2021, after 17 years of research, Wellendorff’s master goldsmiths developed elastic gold, which is twice as flexible as regular gold. Bracelets made with this material can wrap around the wrist without clasps and return to their original shape effortlessly.

Moreover, Wellendorff’s 18K gold jewelry has a distinct color compared to other brands’ gold pieces. This is because the brand incorporates a higher proportion of gold than the international standard of 75%.

Wellendorff Elastic Gold Bracelet

In today’s global luxury jewelry market, where gold remains the centerpiece, very few brands treat goldsmithing as an art form. Wellendorff’s dedication to craftsmanship sets it apart.

Wellendorff is particularly stringent in its training of craftsmen. Apprentices must complete five years of goldsmithing studies at a local school before undergoing a three-year internship at the workshop. Only then are they allowed to create Wellendorff jewelry.

Despite the rapid advancements in the jewelry industry, with an increasing emphasis on speed and mass production, Wellendorff insists that every piece of jewelry is 100% handcrafted in its German workshop.

“Every Wellendorff piece is handmade, with an annual global production of only 8,000 pieces. Depending on the complexity of the design, customers typically wait two to six months. Particularly intricate necklaces and bracelets can only be crafted by a select few artisans, most of whom are already in their eighties,” explained Ouyang Yingping.

Details of Wellendorff’s Woven Gold Craftsmanship

Why Is “Heritage” Key to Captivating High-Net-Worth Clients?

Currently, Wellendorff’s products start at a price point of approximately RMB 50,000 (around USD 6,850).

“Many jewelry brands create ‘entry-level’ collections for younger consumers, but as these individuals mature, they often no longer wear such designs. This goes against Wellendorff’s philosophy that ‘every piece of jewelry should last forever.’ As such, we don’t differentiate between basic and advanced collections. Young people will grow into maturity, and we believe that consumers of all ages deserve jewelry that accompanies them for life,” said Ouyang Yingping.

The concepts of “lasting forever” and “family heritage” are at the heart of Wellendorff’s designs.

For example, with their signature rotating rings, Wellendorff provides lifetime resizing services for the owner and future inheritors. This unique service is made possible by the clever structure of the rotating rings, each consisting of at least four independent bands. Adjusting the ring size involves simply altering the thickness of the inner walls. Additionally, the inner bridge design ensures the ring feels comfortable and seamless on the finger.

Beyond resizing, customers can customize the rotating rings in terms of color, style, engraving, and material.

Wellendorff’s Angel Engraving

For some Very Important Clients (VICs), family members and craftsmen at Wellendorff offer one-on-one consultations, providing personalized redesign services to incorporate meaningful elements into existing jewelry pieces.

Such personalized services and philosophies have contributed to Wellendorff achieving a higher repurchase rate in the Chinese market compared to other luxury jewelry brands.

“The service industry increasingly emphasizes customization and emotional value, and the jewelry industry is no exception. It’s essential to consider how to offer value beyond the product itself,” Ouyang remarked.

Wellendorff “MY DELIGHT Mother-of-Pearl” Rotating Ring

Expanding to Western and Southern China with Plans for Standalone Stores

Regarding customer demographics, Ouyang revealed that compared to Germany and other overseas markets, Wellendorff’s Chinese customers are notably younger, primarily between the ages of 25 and 45. These high-net-worth Chinese consumers are increasingly less interested in logos and prefer understated, classic designs.

Thanks to the brand’s precise craftsmanship, attention to detail, and relatively gender-neutral design style, Wellendorff has also seen a higher proportion of male clients in China compared to other high-end jewelry brands.

Wellendorff “4-752” Men’s Rotating Ring

Since the pandemic, Christoph Wellendorff, the fourth-generation leader of the family brand, has visited the Chinese market twice a year to meet local clients and introduce new jewelry collections.

Meanwhile, Katharina Wellendorff, a fifth-generation family member, has joined the business, overseeing boutique operations. In 2018, she visited China with the brand and even set up a WeChat account. Customers have praised her efficient and friendly communication on social media, with some noting they could directly add her on WeChat through the brand’s official website.

In August, the Pforzheim Jewelry Museum hosted a special exhibition titled The Secret of Luxury—Wellendorff’s Jewelry Art. This event was unique as it was the first and only exhibition co-curated by Wellendorff collectors.

This close, trusting relationship between the family and its clients has been a cornerstone of Wellendorff’s 131-year success in the luxury jewelry industry.

Since its international expansion in the 1970s, Wellendorff has remained focused on its home market in Germany, with Japan as its second-largest market, cultivated over 50 years. By comparison, China is still a relatively young and emerging market, brimming with potential.

“We strive to understand our clients’ thoughts and emotions. Through observation and communication, we feel a resonance between them and Wellendorff jewelry—a shared dedication to love, life, and career. We don’t deliberately try to increase customer loyalty; rather, we remain committed to treating every client with sincerity,” said Ouyang Yingping.

Looking ahead, Wellendorff plans to expand steadily into western and southern China. Ouyang also revealed the brand’s aspiration to open standalone flagship “Wellendorff Houses” in Shanghai and Beijing, offering immersive experiences that showcase the family’s deep heritage in goldsmithing and craftsmanship.

Conclusion

China’s high-net-worth clientele is entering a new phase of brand recognition, characterized by a growing desire for “new” brands. This trend has bolstered confidence among many brands to make long-term investments in the Chinese market.

On one hand, these clients are becoming more sophisticated in appreciating and discerning the exceptional craftsmanship of fine jewelry. On the other hand, they are seeking brands and products that resonate with them on a deeper level—those that embody a commitment to long-term values, the celebration of meaningful moments, and the appreciation of family heritage.

Compared to large corporate-managed luxury jewelry brands, family-owned brands like Wellendorff retain their traditions and heritage intact. This allows them to navigate commercial competition and market changes at their own independent pace while steadfastly upholding quality and craftsmanship.

At the same time, Wellendorff’s unprecedented expansion in China comes without an established roadmap. Each step forward will bring unknown challenges.

“Chinese consumers are growing weary of the trendy elements associated with major brands. The rationality brought by this disillusionment is encouraging people to return to essentials—heritage, craftsmanship, investment value, and so on. Niche luxury brands are finding a way to survive in the market,” Ouyang Yingping concluded in the interview. “The Chinese high-end jewelry market is becoming increasingly sophisticated. I firmly believe that niche foreign brands, if they truly value this market, should proceed boldly.”

| Image Credit: Wellendorff
| Editor: Elisa