Breaking News: Hyer Goods, a handbag company, is navigating important economic challenges, including the impact of tariffs and the inherent volatility of a bootstrapped business, forcing founder Dana Cohen to postpone expansion plans.
Evergreen Context:
Hyer Goods, a handbag company founded by Dana Cohen, has recently seen its products stocked by retailers Strom and Madewell. In 2024,Cohen successfully opened a brick-and-mortar store in New York’s West Village,a significant step made possible by a grant from ChaShaMa,a nonprofit organization dedicated to supporting women and minority artists by providing subsidized real estate.
The company’s operations, however, have been significantly impacted by economic policies. Beginning in April, the Trump management imposed a 10% tariff on goods from Italy, where Hyer Goods sources its manufacturing. This led Cohen to implement price increases, which initially resulted in a “huge dip” in sales. While sales volumes appear to have stabilized, Cohen notes the difficulty in discerning the exact cause due to seasonal fluctuations, expressing her personal struggle to adapt to the higher prices. Further complicating matters, in July, the Trump administration announced additional tariffs on European goods, a move that European trade officials warned could make continued US-EU trade “almost impossible.”
Despite these economic headwinds, Cohen remains committed to the quality of her products.She has no plans to move manufacturing to the United States, citing the superior craftsmanship available in Italy, particularly for details like edge painting, which she believes would be compromised in domestic factories. “Made in USA was just not an option,” she stated.
Cohen, who currently employs five part-time staff, has aspirations to expand her product line to include belts and shoes, source deadstock Italian cottons, and open a second store, potentially in Brooklyn. Her long-term vision includes achieving full circularity in her business, encompassing even hardware components like zippers.
However, current economic volatility and the nature of a bootstrapped business reliant on fluctuating supply chains have forced Cohen to put these expansion dreams on hold. Her immediate focus is on the survival of the business. “Any dreams I had, I’ve put on hold,” she said. “Right now it’s just: how can we stay afloat?”
Cohen emphasizes that her core mission remains unchanged, taking precedence over growth ambitions. “My goal was never to be a behemoth organization,” she stated.”I just want to have a nice, small business for people who care.”
