Irene Chen and Matthew Grenby, co-founders of a functional luxury handbags and accessories brand Parker Thatchare no strangers to good timing rotates – used them to start a business it has been profitable since day one and will achieve eight-figure revenue this year.
Image credit: Courtesy of Parker Thatch
Drawing on Chen’s experience in fashion (as Director of Product Development at Donna Karan) and Grenby’s in UX and design, the couple got their start in entrepreneurship with an electronic stationery company called iomoi, launched in 2001.
Although people liked the idea, it was ahead of its time, the co-founders say. The Internet was not yet mainstream, and potential customers were unwilling to pay for a product they thought should be free. So Iomoi began offering physical products, expanding to homewares with a focus on customization.
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“I’m like, I want this on a tote bag“.
Then Grenby figured out how to apply his popular monograms to 100% cotton – “and the wheels started turning,” says Chen. “I’m like, I want this on a tote bag“The company was (and still is) entirely primedso the couple had to find a creative and profitable way to develop the new product.
“When you don’t have a huge amount of money, it really tests your abilities… how can I do this” said Chen.
They did this by enlisting the help of Chen’s Dry Cleaner 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 a pattern, and she agreed. The bags were made of canvas with two strips of leather attached with rivets for handles. The Goyard stripe was popular at the time, so Chen and Grenby added a striped pattern to their own bag.
It was 2009, and the timing was perfect, the co-founders say: They “launched a bunch of Hail Marys,” which landed iomoi’s bags in Christmas gift guides, right at time for the seasonal shopping rush. Their “MimiThe bag was an instant success, even catching the attention of Reese Witherspoon, and is still a best-seller today.
Image credit: Courtesy of Parker Thatch
“In order to evolve and truly become what we wanted to become, we had to pivot.”
Chen and Grenby continued to develop the brand over the next few years, moving their operations 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 large window, which encouraged 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 fashion company Kate Spade New York, gave them important advice. It was time to rename the companywhich “no one could remember or pronounce,” recalls Grenby.
The co-founders often spent time in Napa with the Spades, and after a night out brainstorming sessions, playing with different ideas, Kate mentioned how much she had always loved the name “Thatch.” Chen and Grenby’s daughter’s name is Parker and their son’s name is Thatcher; “Parker Thatch” was a natural choice.
Personalization was an integral part of the brand’s handbags and accessories, but it eventually became clear that it wasn’t sustainable. “It’s really hard to scale this,” Chen says. “We had a great bag and a great deal, but for ladder and truly becoming what we wanted to become, we had to pivot.”
“It’s been our bread and butter for all these years,” Grenby adds, “and it’s what’s allowed us to grow as far as we have, but we’ve kind of gone as far as we can with this approach there were just so many operational inefficiencies and bottlenecks that would not allow us to (continue to grow).”
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.
Even if moving away from the brand’s original customizations was the right one decisionit was still difficult. Chen likens the experience to jumping off a diving board and not knowing where you’re going to land, and Grenby agrees, adding, “You know it’s water, but how deep is it?” Is there a rock? Is there a shark? I have to take this leap of faith.
“I want things to be elegant and beautiful.”
Take this chance paid off and helped Parker Thatch redefine itself as a brand “focused on functional, elevated luxury.”
“I think that’s where we achieved our goal, and that’s who I am as a person,” Chen says. “I’m not a picky person, but I want to look good and I want things to be stylish and beautiful. But I want to use it every day and I want you to use your bag every day.”
Parker Thatch dropped a customization version for ladderbut he has since adopted another. Customers can personalize their bags with interchangeable straps – such as 100% cow hair camo print with cognac leather trim or navy and white beaded with suede sides – and charms: hearts hanging from chains acrylic turtles, mother-of-pearl evil eyes, etc. much more.
“This all comes from when we started monogramming our bags,” says Chen. “Everyone has different personalities, and that should be reflected in their bags. So I’m giving you a bag that everyone could wear, but I believe the straps (and charms) you choose (are) a reflection of you.”
“If it’s not authentic, people sense it.”
Parker Thatch continues to sell direct to consumer of its website, but it has also added a store to its Orinda showroom. Customers can book virtual or in-person appointments to shop and customize their look.
“We enjoy connecting with our customers in this way,” says Grenby, “and they enjoy it too because they can touch and feel the product.”
Next year, the co-founders look forward to growing the brand through new distribution channels and enjoys continued success with its designs, such as the increasingly popular broken leather concept that attracts buyers to the “Jack” tote (which quickly sold out and is now available for pre-order).
Chen and Grenby have learned a lot over their last 20 years in business, including how to stay competitive in a crowded market – and the difference between entrepreneurs who are looking for lightning success and those who want to build a lasting business.
Image credit: Courtesy of Parker Thatch
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Doing the latter requires a certain level of “squeak“Sometimes people think courage means you have to hang on as hard as you can and keep going and go hard,” Chen says. “But I’ve found that it’s more about longevity and consistency. It’s just about sticking with it.”
And yes, Parker Thatch makes handbags, but its “real mission” is to give customers a confidence boost, says Chen: “I want to make a handbag that, when you put it on, makes you feel impression of being a bit boastful. when you don’t feel well that day, (you put on this bag and you say to yourself), Okay, I can do that“.
Find that “why” has helped boost the business and is a strong defense against inevitable industry challenges, such as competitors producing counterfeits, says Grenby.
“This ‘why’ is not something that is not easily copied,” he explains. “If it’s not authentic, people feel it and they appreciate authenticity“.