Irene Chen and Matthew Grenby, co-founders of the functional luxury handbag and accessories brand Parker Thatchare no strangers to a good time pivot – using them build a business that has been profitable since day one and will hit eight figures in revenue this year.
Image Credit: Courtesy of Parker Thatch
Drawing inspiration from Chen's background in fashion (as director of product development at Donna Karan) and Grenby's in UX and design, the pair started at entrepreneurship with an electronic writing company called iomoi, which was launched in 2001.
Although people liked the idea, it was ahead of its time, the co-founders say. The Internet was not yet widespread, and potential customers were not willing to pay for a product that they thought should be free. So iomoi began offering physical products, expanding into home goods with a focus on personalization.
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“I'm like, I want it in a bag.”
Then Grenby figured out how to put their popular monogram designs on 100% cotton—“and the wheels started turning,” says Chen. “I'm like, I want it in a bagThe business was (and still is) entirely with bootsso the couple had to find a creative and cost-effective way to develop the new product.
“When you don't have a huge amount of funding, it really tests your ability – how do i do this?” says Chen.
They did this by enlisting the help of Chen's Dry Cleaners in Danville, California. It was one family business; The woman who designed Chen's pants did great work and had a degree in design, so they asked her to create a pattern and she agreed. The bags were made of canvas with two strips of leather attached by rivets for handles. Goyard tape was popular at the time, so Chen and Grenby added a stripe design to their bag.
It was 2009, and the timing was just right, the co-founders say: They “threw a bunch of Hail Marys out there,” which threw iomoi bags into holiday gift guides just in time for the seasonal shopping rush. their”MimiThe bag was an instant hit, even catching the eye of Reese Witherspoon and is still a bestseller today.
Image Credit: Courtesy of Parker Thatch
“In order to scale and really become what we wanted to be, we had to pivot.”
Chen and Grenby continued brand growth over the next several years, moving their operation from their garage to a small office in Lafayette, California before outgrowing it and moving to a larger space in Orinda in 2015. The new office had a wonderful window, which inspired the co-founders to open a showroom.
That same year, Chen and Grenby's friends and mentors, Kate and Andy Spade, the husband-and-wife team behind the Kate Spade New York fashion company, gave them some important advice. It was time for him rename the companywhich “no one could remember or pronounce,” recalls Grenby.
The co-founders often spent time in Napa with Spades, and after some evenings brainstorming sessions, playing around with different ideas, Kate mentioned how she had always loved the name “Thatch”. Chen and Grenby's daughter is named Parker and their son Thatcher; Parker Thatch was a natural fit.
Customization was an integral part of the brand's bags and accessories, but eventually, it became clear that it wasn't sustainable. “It's really hard to scale it,” says Chen. “We had a bag and a great business, but in order to DEGREES and to really become what we wanted to be, we had to revolve.”
“That had been our bread and butter for all those years,” adds Grenby, “and that's what allowed us to grow as much as we had, but we went as far as we could with that approach. There were just so many inefficiencies. and operational hurdles that would not allow us (to continue to expand).
Image Credit: Courtesy of Parker Thatch
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The co-founders also wanted to introduce new colors and materials, including leather, to the Parker Thatch line.
Although the move away from the brand's original customizations was the right one DECISIONit was still hard. Chen compares the experience to jumping off a diving board and not being sure where you're going to land, and Grenby agrees, adding, “You know it's water, but how deep is it? Are there any rocks? Is there a shark? We just have to take that leap of faith.”
“I want things to be elegant and beautiful.”
Taking that chance it paid off – and helped Parker Thatch redefine itself as a brand that is “all about functional and elevated luxury”.
“I think this is where we hit our stride and this is who I am as a person,” says Chen. “I'm not a busy person, but I want to look good and I want things to be elegant and beautiful. But I want to use it every day and I want you to use your bag every day.”
Parker Thatch released a customization version on DEGREESbut another has since been embraced. Customers can customize their bags with interchangeable straps—such as 100% cow hair in camo prints with cognac leather trim or white and blue beads with suede sides—and charms: hearts hanging from acrylic turtle chains, eyes of bad mother of pearl etc. much more.
“It all stems from when we started assembling our bags,” explains Chen. “Everyone has different personalities and that should reflect in their bags. So I gave you a bag that everyone could carry, but I believe that the straps (and charms) you choose (are) a reflection of you. “
“If it's not authentic, people know that.”
Parker Thatch continues to sell directly to the consumer from its website, but has also added a store to its Orinda showroom. Customers can make virtual or in-person appointments to shop and customize their look.
“We value connecting with our customer in this way,” says Grenby, “and they also value it because they touch and feel the product.”
In the coming year, the co-founders look forward to growing the brand through innovation distribution channels and finding continued success with his designs, such as the increasingly popular broken leather concept that is drawing buyers to “Jack” Tote (which sold out quickly and is now available for pre-order).
Chen and Grenby have learned a lot over their past 20 years in business, including how to stay competitive in a crowded market — and the difference between entrepreneurs looking for quick success and those who want to build a long-term company.
Image Credit: Courtesy of Parker Thatch
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To do the latter requires a certain level”gravel“Sometimes people (think) grit means you have to hang on as hard as you can and just keep going and going strong,” Chen explains. “But I've found it's more his longevity. And his consistency. He just sticks to it.”
And, yes, Parker Thatch makes handbags, but its “real mission” is to give customers a confidence boost, Chen says: “I want to make a handbag that when you wear it, you feel like you're a little beat up. So when you're not feeling well that day, (put that bag down and you're like) Okay, I can do that.”
Finding that “why” helped grow the company—and serves as a strong hedge against inevitable industry challenges, like knock-off competitors, Grenby says.
“That 'why' is not something that can't be easily replicated,” he explains. “If it's not authentic, people understand that and appreciate it authenticity.”