From Hoboken Living Room To $12M Success: The Vegan Handbag Startup That’s Redefining ‘Made In China
From Cardboard Boxes to Catwalks: How One Woman’s Failed Handbag Launch Lead to a $9 Million Success
Jenny Lei’s Hoboken apartment was once overrun with 300 unsold handbags – a stark reminder of her entrepreneurial dream gone awry. In 2019, the unemployed UX designer had poured $30,000 of her savings into her first production run of Freja, a vegan handbag company. after four weeks, she had sold a mere 20 bags.
“My plan failed spectacularly,” Lei admits. “I couldn’t afford to not make it work. A lot of my savings were sitting in boxes in my living room.”
Fast forward four years, and Freja is a breakout success story. With minimalist designs and a commitment to sustainability, the New York-based company has carved out a loyal customer base in a fiercely competitive market.
The U.S. Bureau of Labor Statistics reports that nearly half of new businesses fail within the first five years. But Lei’s journey from struggling entrepreneur to CEO is a testament to perseverance and adaptability.According to documents reviewed by CNBC Make It, Freja generated $9 million in revenue, including $2 million in profit, over the last year. Lei, now 28, is Freja’s only full-time employee, supported by a small team of contractors.
Lei’s idea for Freja was born out of frustration. In 2019, while preparing for a job interview in New York, she realized none of her existing bags fit the occasion. “One was too small. Another didn’t offer enough interior institution,” she says.
After the interview, she sketched out the bag she wished she had – one that could hold a laptop, portfolio, and personal items without sacrificing style. persistent, Lei used $300,000 she had saved from a graduate school dropshipping business to bring her vision to life.
The initial results were discouraging. A $2,000 prototype from a Brooklyn maker was “a kindergartner’s art project,” according to Lei.
later that year, a visit to her parents in Guangzhou, China, proved pivotal. There, she toured factories specializing in vegan leather, ultimately partnering with one that was transparent about its operations.”As a Chinese person, I wanted Freja to kind of be my way of showing the world this is what ‘Made in China’ can look like,” she says.Even with a new production partner, sales were sluggish. Lei spent a year selling off her initial inventory while building a website, collecting email addresses, and writing blog posts about Freja’s sustainability ethos. “It was really, really slow for the first two years,” she recalls.
Things began to change in 2022. Social media ads helped Freja generate $1.7 million in revenue, allowing Lei to secure two Shopify loans to expand her product line. The gamble paid off: Freja brought in $5.3 million last year and is projected to close 2024 with $12 million in revenue.Still, Freja is a rising contender in the $22.8 billion luxury handbag market, competing alongside established industry leaders such as Louis Vuitton and Dior. Lei, however, is undeterred. She’s doubling down on customer loyalty events, mentoring aspiring entrepreneurs, and expanding Freja’s product offerings.
“One thing I kept telling myself was, ‘No one is born a designer,’ but I can become one in a couple of years if I give it a go,” she says. “I think now, maybe this year, I can start calling myself a designer … I think we’ve hit a stride.”
From Cardboard Boxes to Catwalks: How One Woman’s Failed Handbag Launch Led to a $9 Million Success
Jenny Lei’s Hoboken apartment was once overrun with 300 unsold handbags – a stark reminder of her entrepreneurial dream gone awry. In 2019, the unemployed UX designer had poured $30,000 of her savings into her first production run of Freja, a vegan handbag company. after four weeks, she had sold a mere 20 bags.
“My plan failed spectacularly,” Lei admits.”I couldn’t afford to not make it work.A lot of my savings were sitting in boxes in my living room.”
Fast forward four years, and Freja is a breakout success story. With minimalist designs and a commitment to sustainability, the New York-based company has carved out a loyal customer base in a fiercely competitive market.
The U.S.Bureau of Labor Statistics reports that nearly half of new businesses fail within the first five years. But Lei’s journey from struggling entrepreneur to CEO is a testament to perseverance and adaptability. According to documents reviewed by CNBC Make It, Freja generated $9 million in revenue, including $2 million in profit, over the last year. Lei, now 28, is Freja’s onyl full-time employee, supported by a small team of contractors.
Lei’s idea for Freja was born out of frustration.In 2019, while preparing for a job interview in New York, she realized none of her existing bags fit the occasion.”One was too small. Another didn’t offer enough interior institution,” she says.
After the interview, she sketched out the bag she wished she had – one that could hold a laptop, portfolio, and personal items without sacrificing style. Persistent, lei used $300,000 she had saved from a graduate school dropshipping business to bring her vision to life.
The initial results were discouraging.A $2,000 prototype from a Brooklyn maker was “a kindergartner’s art project,” according to Lei.
Later that year, a visit to her parents in Guangzhou, China, proved pivotal. There, she toured factories specializing in vegan leather, ultimately partnering with one that was clear about its operations.”As a Chinese person, I wanted Freja to kind of be my way of showing the world this is what ‘Made in China’ can look like,” she says.Even with a new production partner, sales were sluggish. Lei spent a year selling off her initial inventory while building a website, collecting email addresses, and writing blog posts about Freja’s sustainability ethos. ”It was really, really slow for the first two years,” she recalls.
Things began to change in 2022. social media ads helped Freja generate $1.7 million in revenue, allowing Lei to secure two Shopify loans to expand her product line. The gamble paid off: Freja brought in $5.3 million last year and is projected to close 2024 with $12 million in revenue.Still, Freja is a rising contender in the $22.8 billion luxury handbag market, competing alongside established industry leaders such as Louis Vuitton and Dior. Lei, though, is undeterred.she’s doubling down on customer loyalty events, mentoring aspiring entrepreneurs, and expanding Freja’s product offerings.
“One thing I kept telling myself was, ‘No one is born a designer,’ but I can become one in a couple of years if I give it a go,” she says. “I think now, maybe this year, I can start calling myself a designer … I think we’ve hit a stride.”