Theodor Schmuz-Baudiss becomes artistic director and takes optimal advantage of Seger's discoveries: KPM's Jugendstil porcelain helps to set the trend for porcelain design. In 1912, the CERES dinner service is created.

With a war on, people are expected to give up all luxuries, and they are called upon to donate gold for iron. On the Kaiser's request, gold decoration is dispensed with. In fact, the contemporary motif, the Iron Cross, becomes the centre of attention. Instead of roses, oak leaf clusters and sweet shepherdesses, the KPM artists practice painting the faces of generals, especially those of Kaiser Wilhelm II and Paul von Hindenburg.

Now without a king, KPM officially becomes a state-owned porcelain manufacturer. But the brand continues to be called KPM.

Under the direction of Dr. Günther Freiherr von Pechmann, the founder of the New Collection in Munich and chairman of the German Werkbund, a new artistic chapter begins. The Werkbund and the Bauhaus influence artistic concepts. With her classic URBINO dinner service (1931), designer Trude Petri not only brings the company commercial success: In 1937, KPM is awarded the Grand Prize for the dinner service at the International Exposition in Paris. Based on the design vocabulary of New Objectivity, the dinner services ARKADIA and FELDBLUMENRELIEF AUF BORD are created in 1938.