Irene Chen and Matthew Grenby, co-founders of the functional luxury handbags and accessories brand Parker ThatchThey’re no strangers to timely pivots – they’ve used them to construct an organization that is been profitable from day one and is about to do eight-figure sales this 12 months.
Image source: Courtesy of Parker Thatch
Inspired by Chen’s background in fashion (as head of product development at Donna Karan) and Grenby’s in UX and design, the couple began their entrepreneurial journey with an e-stationery company called iomoi, founded in 2001.
Although people liked the concept, it was ahead of its time, the co-founders say. The Internet wasn’t yet mainstream and potential customers weren’t willing to pay for a product they thought needs to be free. So iomoi began offering physical products and expanded into homewares with a give attention to customization.
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“I think, I want this on a tote bag.”
Then Grenby discovered bring his popular monogram designs to 100% cotton—“and the wheels started turning,” says Chen. “I believe, I need this on a tote bag.” The company was (and still is) devastated, so the couple had to seek out a creative, cost-effective technique to develop the brand new product.
“If you don’t have a large amount of financing, it tests your skills – How do I do that??” says Chen.
They completed this by enlisting the assistance of Chen’s Dry Cleaners in Danville, California. It was a family business; The woman who hemmed Chen’s pants did a superb job and had a level in design. So she was asked to design a pattern and she or he agreed. The bags were product of canvas with two strips of leather attached with rivets as handles. The Goyard stripe was popular on the time, so Chen and Grenby added a stripe design to their very own bag.
It was 2009, and the timing was right, say the co-founders: They “threw out a bunch of Hail Marys,” which landed iomoi’s bags in holiday gift guides just in time for the seasonal shopping rush. Her “Mimi“The bag was an instant hit, even caught the attention of Reese Witherspoon and is still a bestseller today.
Image source: Courtesy of Parker Thatch
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“In order to scale and really become what we wanted to be, we had to pivot.”
Chen and Grenby continued to grow the brand over the subsequent few years, moving their operations from their garage to a small office in Lafayette, California, before outgrowing themselves and moving to larger space in Orinda in 2015. The recent office had an excellent window, which inspired the co-founders to open a showroom.
That same 12 months, Chen and Grenby’s friends and mentors Kate and Andy Spade, the married couple behind fashion company Kate Spade New York, gave them some vital advice. It was time to rename the corporate, “which no one could remember or pronounce,” Grenby recalls.
The co-founders often hung out with the Spades in Napa, and after a number of evening brainstorming sessions fooling around with different ideas, Kate mentioned how much she had all the time loved the name “Thatch.” Chen and Grenby’s daughter’s name is Parker and their son’s name is Thatcher; “Parker Thatch” just fit the bill.
Customization was an integral a part of the brand’s handbags and accessories, but in some unspecified time in the future it became clear that it wasn’t sustainable. “It’s really difficult to scale this,” says Chen. “We had a great pocket and a great business, but in order to grow and really become what we wanted to be, we had to change.”
“This has been our livelihood for all these years,” adds Grenby, “and this has allowed us to grow as much as we could, but we have now gone so far as we could with this approach. There were just so many operational inefficiencies and bottlenecks that prevented us from doing that [continue to expand].”
Image source: Courtesy of Parker Thatch
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The co-founders also desired to introduce recent colours and materials, including leather, to Parker Thatch’s line.
While moving away from the brand’s original customizations was the appropriate decision, it was still a difficult decision. Chen compares the experience to jumping off a diving board and never being sure where you are 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? Just her.” I even have to take that leap of religion.
“I want things to be elegant and beautiful.”
Seizing the chance was value it – and helped Parker Thatch redefine itself as a brand “all about functional and elevated luxury.”
“I think this is where we broke through, and this is 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 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 adaptation but has since moved on to a different. Customers can personalize their bags with interchangeable straps—similar to 100% camouflage cow hair with cognac leather trim or navy and white beads with suede sides—and charms: hearts dangling from acrylic turtle chains, mother-of-pearl evil eyes, and so way more.
“It all goes back to when we started monogramming our bags,” explains Chen. “Everyone has a different personality and that should affect their pockets. So I give you a bag that anyone can carry, but I believe that the straps.” [and charms] that you simply select [are] a mirrored image of you.
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“If it’s not authentic, people sense it.”
Parker Thatch continues to sell on to consumers through its website, but has also added a store to its showroom in Orinda. Customers can schedule virtual or in-person appointments to buy and customize their look.
“We value engaging with our customers this way,” says Grenby, “and they appreciate it too because they can touch and feel the product.”
Over the subsequent 12 months, the co-founders look ahead to expanding the brand through recent distribution channels and continuing to seek out success with their designs, similar to the increasingly popular broken leather concept that lures shoppers out into the world.Jack“Bag (which sold out quickly and is now available for pre-order).
Chen and Grenby have learned loads over the past 20-plus years in business, including stay competitive in a crowded market – and the difference between entrepreneurs on the lookout for short-term success and those that are a component of it Companies need to construct longevity.
Image source: Courtesy of Parker Thatch
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The latter requires a certain quantity of “courage,” say the co-founders. “Sometimes people [think] Courage means you have to persevere as hard as you can and just keep going and work hard,” Chen explains. “But I’ve found that it’s more about longevity and consistency.” It’s only a matter of sticking with it.
And yes, Parker Thatch makes handbags, but its “real mission” is to spice up customer confidence, says Chen: “I intend to make a handbag that if you put it on, you’re feeling just a little bit to be proud.” So if you don’t feel good that day, [you put that bag on and are like], Okay, I can do that.”
Finding that “why” has helped propel the corporate forward — and serves as a solid defense against inevitable challenges within the industry, similar to competitors producing knockoffs, says Grenby.
“This ‘why’ is not easy to copy,” he explains. “If it’s not authentic, people sense that and value authenticity.”
