Irene Chen and Matthew Grenby, co-founders of a brand of functional, luxury handbags and accessories Parker Thatchare no strangers to timely returns – they’ve used them to build a business that is been profitable from day one and will hit eight-figure revenues this yr.
Photo credit: Courtesy of Parker Thatch
Drawing inspiration from Chen’s experience in fashion (as director of product development at Donna Karan) and Grenby’s experience in UX and design, the pair began their entrepreneurial careers with e-paper company iomoi, which launched in 2001.
Although people liked the idea, it was ahead of its time, say the co-founders. The Internet was not yet widespread, and potential customers weren’t willing to pay for a product that they believed needs to be free. So iomoi began offering physical products, expanding into household products with an emphasis on personalization.
“I’m like, I want it on my bag“
Then Grenby discovered how to put his popular monogram designs on one hundred pc cotton — “and the wheels started turning,” Chen says. “I’m like, I want it on my bag” The business was (and still is) fully bootstrapped, so the couple had to find a creative and cost-effective way to develop a recent product.
“When you don’t have a huge amount of funds, it really tests your capabilities… how to do it?” says Chen.
They did this with the help of Chen’s Dry Cleaning in Danville, California. It was a family business; the woman who hemmed Chen’s pants did a great job and had a degree in design, so they asked her to create the pattern and she agreed. The bags were fabricated from canvas with two strips of leather attached with rivets as handles. The Goyard strap was popular at the time, so Chen and Grenby added the design to their very own bag.
The yr was 2009, and the timing was right, say the co-founders: “they threw a lot of Hail Marys out there,” putting iomoi bags on holiday gift guides just in time for the seasonal shopping peak. Their "Mimi“the bag immediately became a hit, it even caught the attention of Reese Witherspoon and is still a bestseller.
Photo credit: Courtesy of Parker Thatch
“To scale up and really become what we wanted to become, we had to change.”
Chen and Grenby continued to grow the brand over the next few years, moving their operation from their garage to a small office in Lafayette, California, before moving to a larger space in Orinda in 2015. The recent office had a great window, which inspired the co-founders to open a showroom.
That same yr, Chen and Grenby’s friends and mentors, Kate and Andy Spade, the husband-and-wife team behind the fashion company Kate Spade New York, gave them some vital advice. It was time to change the company’s name, which “nobody remembered or pronounced,” Grenby recalled.
The co-founders often frolicked in Napa with The Spades, and after a few evening brainstorming sessions toying with different ideas, Kate mentioned that she had all the time loved the name “Thatch”. Chen and Grenby’s daughter is named Parker and their son is Thatcher; “Parker Thatch” was a natural fit.
Personalization was an integral a part of the brand’s handbags and accessories, but ultimately it became clear that it was not sustainable. “It’s really hard to scale,” Chen says. “We had a great bag and a great business, but to scale and really become what we wanted to become, we had to change.”
“That’s been our bread and butter all these years,” adds Grenby, “and that is what allowed us to grow so far as we could, but that approach took us so far as we could. many operational inefficiencies and bottlenecks that prevented us from doing so [continue to expand]”
Photo credit: Courtesy of Parker Thatch
The co-founders also wanted to introduce recent colours and materials, including leather, to the Parker Thatch line.
Although moving away from the original brand personalization was the right decision, it was still a difficult one. Chen likens the experience to jumping off a trampoline and not knowing where you will land, and Grenby agrees, adding: “You know it’s water, but how deep is it? Is there a rock there? Is there a shark there? You just have to take that leap of faith.”
“I want everything to be elegant and beautiful.”
Taking this chance paid off and helped Parker Thatch redefine itself as a brand that is “all about functionality and elevated luxury.”
“I think we’ve achieved success at this point, and that’s who I am as a person,” Chen says. “I’m not picky, but I want to look good, I want everything 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 abandoned one version of scale customization, but has since adopted one other. Customers can personalize their bags with interchangeable straps — think 100% camouflage cow hair with cognac leather trim or navy and white beads with suede sides — and amulets: hearts hanging from acrylic turtle chains, evil eyes fabricated from dough pearl and so on. much more.
“This all came from when we first started monogramming our bags,” Chen explains. “Everyone has a different personality and this should be reflected in their bags. That’s why I’m giving you a bag that anyone can carry, but I think straps [and charms] which one do you choose? [are] a reflection of you.”
“If something isn’t authentic, people can sense it.”
Parker Thatch continues to sell directly to consumers through its website, but has also added a store to its Orinda showroom. Customers can schedule virtual or in-person appointments to shop and customize their look.
“We value this connection with our customers,” says Grenby, “and they value it too because they can touch and feel the product.”
Next yr, the co-founders look forward to growing the brand through recent distribution channels and the continued success of their designs, equivalent to the increasingly popular broken leather concept that pulls shoppers to “Lift” (which quickly sold out and is now available for pre-order).
Chen and Grenby have learned a lot over their 20-plus years in business, including how to stay competitive in a crowded marketplace and the difference between entrepreneurs looking for fast success and those looking to build a company with longevity.
Photo credit: Courtesy of Parker Thatch
Doing the latter requires a certain level of “commitment,” say the co-founders. “Sometimes people [think] “Perseverance means you have to hold on as hard as you can and just keep going and do your best,” Chen explains. “But I’ve found that it’s more about durability and consistency. He just sticks to it.”
And yes, Parker Thatch makes handbags, but its “real mission” is to give customers confidence, says Chen: “I would like to make a handbag that you are feeling a little happy with when you place it on. So when you are not feeling your best that day, [you put that bag on and are like], Okay, I can do this“
Finding that “why” has helped the company regain its strength and is a solid defense against inevitable industry challenges equivalent to counterfeit competitors, Grenby says.
“This ‘why’ question is not something that can’t be easily replicated,” he explains. “If something isn’t authentic, people sense it and value authenticity.”