Irene Chen and Matthew Granby, co-founders of functional luxury bag and accessories brand Parker Thatch, are no strangers to well-timed pivots—they’ve used them to build a business that’s been profitable since day one and is set to hit eight figures this year. .
Image credit: Courtesy of Parker Thatch
Inspired by Chen’s background in fashion (as director of product development at Donna Karan) and Grenby’s in UX and design, the pair went into entrepreneurship in 2001 with iomoi, an electronic stationery company.
According to the co-founders, while people liked the idea, it was premature. The internet wasn’t mainstream yet, and potential customers weren’t willing to pay for a product they thought should be free. Thus, iomoi began offering physical products, expanding into home goods with a focus on personalization.
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“I am so I want it in the bag.”
Then Grenby figured out how to put the popular monogram designs onto 100% cotton—“and the wheels started turning,” Chen said. “I am so I want this in the bag.” The business was (and still is) completely up and running, so the couple had to find a creative, cost-effective way to develop the new product.
“It really tests your ability when you don’t have a lot of funding — how do i do this?” Chen says.
They did this by enlisting the help of Chen’s dry cleaners in Danville, California. It was a family business; The woman who cut Chen’s pants did a great job and got a degree in design, so they asked her to create a pattern and she agreed. The bags are made of canvas with two strips of leather fastened with rivets for handles. The Goyard stripe was popular at the time, so Chen and Granby added the stripe design to their bags.
It was 2009, and the timing was right, the co-founders say: They “threw a bunch of Hail Marys” that landed iomoi’s bags in holiday gift guides just in time for the seasonal shopping rush. Their “Mimi” bag was an instant hit, even catching the eye of Reese Witherspoon, and is still a bestseller today.
Image credit: Courtesy of Parker Thatch
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“We needed to pivot to scale and become what we really wanted to be.”
Chen and Granby continued to grow the brand over the next few years, moving operations from their garage to a small office in Lafayette, California, and in 2015, moving to a larger location in Orinda. The new office had a great window. , 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 fashion company Kate Spade New York, gave them some important advice. Granby recalls that it was time to change the name of the company that “no one could remember or pronounce.”
The co-founders often spent time with Spades in Napa, and after several evening brainstorming sessions, Kate, toying with different ideas, mentioned how she always loved the name “Thatch.” Chen and Granby have a daughter named Parker and a son named Thatcher; “Parker Thatch” was a natural fit.
Customization was an integral part of the brand’s bags and accessories, but in the end it became clear that this was not sustainable. “It’s really hard to scale up,” Chen said. “We had a great bag and a great business, but we needed to pivot to scale and become what we really wanted to be.”
“That’s been our bread and butter all these years,” adds Granby, “and it’s allowed us to grow as much as we have, but we’ve gone as far as we can with that approach. There were a lot of operational inefficiencies and bottlenecks that didn’t 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 to Parker Thatch’s line, including leather.
While it was the right decision to move away from the brand’s original customizations, it was still difficult. Chen likens the experience to jumping off a diving board and not being sure where you’re going to land, and Granby agrees, adding, “You know, it’s water, but how deep? Is there a rock? Is there a shark? You just have to take that leap of faith.”
“I want things to be elegant and beautiful.”
Taking that chance paid off and helped Parker Thatcha redefine itself as an “everything functional and high luxury” brand.
“I see this is where we hit our stride, and I’m a human being,” Chen said. “I’m not a fussy person, but I want to look good and I want everything to be elegant and beautiful. But I want to use it every day, and I want you to use the bag every day.”
Parker Thatch released one version of customization for scaling, but has since adopted another. Customers can customize their bag with interchangeable straps—camouflaged 100% cow hair with cognac leather trim or purple and white beading with suede sides—and charms: hearts dangling from acrylic tortoiseshell chains, mother-of-pearl evil eyes, and more. more.
“It all stems from when we started monogramming our bags,” Chen explains. “Everyone has different personalities and that should be reflected in their bags. So I’m giving you a bag that anyone can carry, but I believe in straps. [and charms] of your choice [are] is the opposite of you.”
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“If it’s not authentic, people feel it.”
Parker Thatch continues to sell direct-to-consumer from its website, but has added a store to its Orinda showroom. Customers can schedule virtual or in-person appointments to shop and customize their look.
“We appreciate connecting with our customer in this way,” Grenby said, “and they appreciate it because they can touch and feel the product.”
In the coming year, the co-founders look forward to growing the brand through new distribution channels and continued success with its designs, such as the ever-popular broken leather concept that lures shoppers into the Jack bag (soon sold out, now available for pre-order).
Chen and Granby have learned a lot in their 20-plus years in business, including how to stay competitive in a crowded marketplace — and the difference between entrepreneurs who want to succeed and those who want to build a company with longevity.
Image credit: Courtesy of Parker Thatch
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The latter requires a certain level of “polarity,” the co-founders say. “Sometimes people [think] grit means you have to hold on as tight as you can and just keep going and go hard,” Chen explains. He just sticks to it.”
And yes, Parker Thatch makes handbags, but its “real mission” is to boost customers’ self-confidence, says Chen: “I want to make a handbag that makes you feel a little elegant when you wear it. When you’re not feeling well that day, [you put that bag on and are like], Well, I can do that.”
Granby says the “why” helps strengthen the company and acts as a strong defense against inevitable industry challenges such as competitors.
He explains: “This ‘why’ is not something that cannot be easily copied. “If it’s not authentic, people feel it and appreciate authenticity.”