From Bankruptcy to Boom: New Jersey Woman Turns Handbag Business Around with Perseverance
In a remarkable tale of entrepreneurial spirit, New York-based luxury handbag company 'Freja' has turned a once-dismal venture into a thriving business generating $9 million in annual revenue.
CEO and founder Jenny Lei's journey began three years ago when she stared at hundreds of unsold handbags stacked in her apartment, a hard reminder of her failed attempt to create the "perfect" work bag. With a prototype that hardly sold, Lei was an unemployed UX designer with no formal fashion experience, having sunk $30,000 into the project.
Today, Lei is a 28-year-old woman who has overcome considerable obstacles to achieve success. Despite facing significant challenges in the competitive fashion world, 'Freja' persevered and adapted its marketing strategy, focusing on social media and environmental sustainability.
According to Lei, her foray into handbag design began not out of a desire to start a business but from personal frustration as a graduate student at Cornell University. She designed "the perfect work bag" with structure, compartments, and a strap that could fit over a winter coat, sparking an idea to create a unique product.
Lei used $300,000 saved from a purse dropshipping side hustle to fund the initial production, but the first prototype was a disappointment. Unfazed, she traveled to China, working with factories that specialized in vegan leather and committed to ethical practices.
After selling only 300 bags in the first year, Lei doubled down on her idea, investing further into social media marketing and a second run of inventory with a new design. The results were gradual but consistent, with the company generating $1.7 million in annual revenue in 2022.
By 2023, 'Freja' had more than tripled its revenue to $5.3 million, allowing Lei to pay off business loans and invest in new bag designs. Today, the company is on track to finish 2024 with $12 million in revenue.
Lei attributed the company's success to a combination of loyal customers drawn in by minimalistic designs and a commitment to environmental sustainability. When asked about her entrepreneurial journey, Lei said, "I couldn’t afford to not make it work... A lot of my savings were sitting in boxes in my living room."
For those who doubt their abilities or face seemingly insurmountable setbacks, Lei's story serves as a motivation and reminder that with determination and perseverance, success is within reach.