Meet Charlotte Staerck, founder of The Handbag Clinic
I’ve been obsessed with handbags forever. I’m not sure why, I grew up in a tiny village outside of Newcastle, and my mum wasn’t interested at all. I got a Saturday job at the age of 16 and would gaze longingly at the designer handbags through the windows. As soon as I could, I bought my first brand-named bag. At the time in Newcastle Mulberry was the biggest luxury brand name you could buy but I couldn’t afford it, so I bought a DKNY one instead. I then saved up for another. I’d keep them for a while before selling them on eBay. I quickly realised that, once I’d sold both, I could then afford a Mulberry. So, I was flipping bags long before it was coined as ‘circular fashion’.
A few years later, I bought a cream Luella tote. Sadly, it soon got covered in dye transfer from my jeans and a colleague told me there was a local company, The Furniture Clinic, that did repairs. She gave me their number, but I lost the piece of paper. If I had gone, it turns out I’d have met my future husband, Ben, two years earlier than I did — at a bar in Newcastle. Ben had built up a business with his father cleaning and restoring furniture and leather household items since 2004 and, by the time I met him, it had grown from a small online family operation to a thriving global business.
At the time, I was on a fast-track career path having risen through local government ranks to be appointed as a Senior Buyer of pharmaceutical and medical equipment for the NHS. I was fiercely independent and my career was going from strength to strength but my passion was always luxury handbags. As a devout eBayer from the age of 16, I would spend ages browsing the preowned market and buying and selling at the right time so I could covet the latest It bag – something that’s now been coined as circular fashion.
By 2013, I began observing the increasing number of handbags that were being sent to Furniture Clinic for restoration. I also observed the significant value that restoration work added to handbags that may have otherwise been discarded or unsaleable. So, I encouraged Ben to officially incorporate The Handbag Clinic as its own independent luxury handbag offshoot in 2013 – all still operated through our ecommerce platform at the time. The initial idea was to build on the leather restoration business and pivot this into the burgeoning appetite for handbag restoration. At that time, there were local high street cobblers who could perform simple repairs – but nowhere near the level of craftsmanship required for luxury items.
There’s always a lightbulb moment before the beginning of a new venture. What was that moment for you?
As demand for our business grew, we opened the doors to our first store on King’s Road in 2015, followed swiftly by Newcastle and Leeds. Restoration was still very much the heart of the business and I observed how this directly impacted the resale value of the item. Ben and I were having dinner one evening when I had my lightbulb moment. I had the idea of integrating buying and selling luxury pre-owned handbags as a resale operation in our store. The unique combination of resale and restoration meant clients could fetch the highest possible price for their items. We had so much retail space and no one else was doing it on a large scale or as a retail operation at the time. There was a clear gap in the market. So, we launched the resale operation first in our Newcastle store, which was a showcase for the business model, housing our selection of the world’s most coveted designer bags, followed by Chelsea and Leeds. It really spiralled from there.
As we’ve expanded geographically with our retail locations or launched new services, we have always invested into the heart of our business; the Clinic itself. We started with just two Artisans and now have a team of 44 which includes 13 Artisans along with Restoration Specialists and logistical teams. We have also diversified into restoration for shoes, in response to demand from our customers. We offer everything from simple cobbler services; adding protective soles to extend the life of high fashion pumps to trainer cleaning - since the designer trainer market has exploded in the last few years.
In line with increasing demand, we also launched ‘Authenticate’ as an official service. We provide detailed authentication reports for all brands we stock; from full reports with finite detail and photographic evidence, to a signed certificate or simple evaluation as to whether the bag is real or a replica. It is so important to understand not only how to authenticate key features but the history behind the bag, how they are constructed and how the materials have changed over the years to truly authenticate well, especially given you can get some very carefully constructed fakes.
We have a full team of Buyers who are fully trained in authentication. Any one bag will be checked by at least three different sets of eyes before being placed online and instore. Whilst we have complete faith in each Buyer, it’s super important to have a robust process so that nothing gets missed. This dedication to authenticity is why customers choose The Handbag Clinic to authenticate items they have purchased via other reselling platforms. It’s why we are trusted by leading auction houses to authenticate their full catalogue before the big day and why our resale operation has been so successful.
How did you fund the business in the early stages?
We started out with a small loan, building our operation organically for the first few years. In 2019, we then injected more capital into the business with a crowdfunded investment of £220,000. But scaling isn’t possible without significant investment. So, in 2021, we enlisted a private equity firm to raise investment to accelerate our ambitious growth plans. This was led by Mercia and we secured an £800k investment.
I think this approach has been key to our success and growth. It enabled more autonomy as the business grew at its own pace and allowed for deep learning underpinned by proof of concept and robust profit margins. Against a profit-first investor landscape, start-ups are keen to attract big investment at an early stage, but these external pressures, combined with the tricky logistics and complicated infrastructure of repair businesses, can make or break a business.
Since September last year, we began to see the focus for investors change – especially in the B2C space. Given the doom and gloom outlook on the high-street as well as the cost-of-living crisis, it’s understandable that investors are tightening their belts – especially for start-ups. This is not to say that resale start-ups will necessarily struggle and, as we’ve seen, in times of economic downturn – people turn to resale to cut the cost or to generate surplus income. During the pandemic, for example, despite having to close all of our stores we saw unexpected growth. During the cost of living crisis, we began attracting new customer bases, those turning to preowned for the first time, and this has been a key factor in our triple digit growth through Q4 last year, whilst the general consumer market saw a downturn.
What does your business offer its target audience?
As the UK’s only fully circular model, we Buy, Sell, Restore and Authenticate the world’s most coveted handbags, including Hermes, Chanel and Louis Vuitton. We offer a seamless service for sustainable luxury, guiding handbag lovers and collectors through their own unique circular journey; buying, restoring, authenticating and selling on handbags they no longer use, freeing up cash to reinvest into new fashion desires. Or simply restoring or reinventing their most treasured items to pass down for generations to come.
Our repair and restoration services encourage people not to put an end to items they no longer use. In addition to handbags, we also clean, repair and restore shoes, leather clothing – particularly jackets - and fashion accessories such as wallets and belts. From changing the colour of the shoe, to restoring a chewed, scuffed or torn leather heel or replacing hardware and broken straps. Because we restore over 700 bags each month and have been restoring designer handbags for over ten years, we have created brand specific restorations, which include the little extras to combat areas of concern we frequently see from those brands. For example the replating of 24 carat gold on a CC lock or hand-dyeing the rope finish for a Balenciaga City.
Our resale service maximises valuations for sellers by increasing the market value of their item through cleaning or small cosmetic touch-ups. This ensures a ‘brand new but preowned’ feeling for shoppers. We also offer a robust buy back scheme for sellers who regularly like to switch up their wardrobe.
Authentication is absolutely crucial for resale operations to build consumer confidence and trust. We’ve seen many players up their game on this front. It’s been a central pillar of our business and we recently launched it as its own service for shoppers; not only can they buy with 100% confidence – they can come to us for independent expertise on items they’ve bought through a third-party seller. On a B2B level, we also carry out authentication services for some of the leading auction houses including Bonhams, so we’ve built up industry-renowned credibility in this space.
What’s the most common problem your customers approach you with?
The most common issues we see at The Handbag Clinic are accidental liquid stains on a bag or dye transfer from denim jeans. Most items in luxury fashion are made from lightly treated leathers for their luxurious butter soft feel. This does, however, mean that they are super absorbent. Because bags are used outside and inside, they are prone to coming into contact with common everyday liquids such as rainwater, beverages, perfume leaks, ink, grease stains, denim transfer dye from jeans and, believe it or not, hair dye splashes from bags taken to the hair salon.
I would say our most popular treatment request for shoes is the restoration of the signature red sole on Christian Louboutin shoes.
We’ve had all manner of restoration challenges, from handbags being burnt in fires or chewed by dogs to reconstructing the inside of vintage trunks or restoring satin-white wedding shoes. Every case is unique. We can restore most things and our team of skilled artisans are always looking at new and innovative ways to solve complex repairs, whilst our research and development team are always working on improving our products to tackle the seemingly impossible.
How do you set yourself apart from other businesses in your industry?
The Handbag Clinic is built out of a 25-year legacy of leather restoration and my passion, flipping bags since I was just 16, so that integrity and authentic foundation is vital for facilitating growth and retaining and attracting new customers.
I think having a clear USP is ultimately the key to achieving growth and longevity. At The Handbag Clinic we unlock the value of prospective resale items through our cleaning and restoration services – it’s a point of differentiation that enables us to stand out in an otherwise crowded market. We also specialise in reselling luxury handbags, which keeps our market and audience segment highly targeted. I think having too diverse a range of products for resale means a huge strain on infrastructure, especially given resale requires expert authentication built in.
There’s been a huge spotlight on tackling the ‘end of life’ issue in this sector. With our fully circular model, ‘Buy, Sell, Restore, Authenticate’, we strive to solve this. The problem for many resale platforms is that, whilst they may well be extending the life of an individual item, they aren’t fully addressing the wider issue. Because it’s more of a ‘value-add’ proposition, this means that marketing efforts around sustainability are less meaningful and less effective. Creating a brand architecture that demonstrates integrity, authenticity and action will ensure you truly connect with customers and make an impact.
We have just launched the UK’s first luxury care programme, ‘The Inner Circle’ which encapsulates this exact ethos. It enables luxury investors to maintain the value and condition of their luxury items all year round through a bespoke care plan that starts at just £7.99 per month. Investing in luxury is a promise of longevity, but luxury items are crafted from delicate and absorbent materials, which look beautiful but are highly disposed to wear and tear. Accidental stains are some of the most common problems we treat in the Clinic - it can be devastating given the sentimental or monetary value invested. Life happens but that shouldn’t mean we have to save our most treasured items for the best. There’s nothing more sustainable than prolonging and preserving the items we already have in our wardrobes.
Being the pioneers of handbag restoration, we are the trusted aftercare service for 13 of fashion’s biggest luxury brands who come to us directly to support them with repairs and cleaning services. We see this as huge progress towards a more collaborative industry.
What social media channel would you say has worked the best for your business and why?
Our Instagram platform acts as a shop window for our business and, given it’s known as the #1 shopping vehicle for sales and a home for fashion, it’s a vital part of our marketing strategy. We regularly showcase restoration transformations and these have huge engagement – there’s a cultural fascination around the art of this intrinsic craftsmanship and we create our video content using inbuilt ASMR. We’re constantly told how deeply satisfying this content is to watch.
It's also an important platform for the digital content creators and celebrity clientele we work with. We’re known as the best kept secret of fashion editors, influencers, stylists and celebrities including Claudia Schiffer, Poppy Delevingne, Storm Keating, Heidi Range, Frankie Bridge and the Made In Chelsea stars. They use our services to continually update their look whilst being kind to the planet. Restoring items to preserve them before selling on, or selling on gifted items they no longer use for others to enjoy.
I would also say our YouTube platform, which we launched during the pandemic as a home for the video content we produce. Within the first few days, we received over 1 million views and we grew our subscriber base by 500% overnight, with one Chanel GST restoration going viral across TikTok and achieving worldwide media coverage. We have a combined social media following of over 300,000.
How does technological advancement speak to the strategic direction of your business?
Technology is crucial to advancement within this sector. We are creating bespoke software to manage everything from booking in and tracking repairs to integrating AI technology to our processes to ensure our team who carry out skilled work by hand can focus on what is important.
Our bespoke tech also allows for us to work closer with the brands we support, providing unique data on everything from common faults and repairs to how their items hold value in the pre-owned market.
We are exploring how we incorporate AI into our authentication processes however we strongly believe the best opinion is using first hand sight of the bag, using tech to support. We use highly magnifying cameras and image overlays which we believe can be supported by AI with thorough data sets.
What’s the biggest lesson you’ve learnt so far as an entrepreneur?
I think learning to see failures as a learning opportunity. Part of getting what you want is asking for feedback and acid testing your progress. So, it’s important to learn to love criticism and be prepared to be responsive. That doesn’t mean shifting direction every time someone says something negative, but understanding what you do well and what needs improving on. It’s a case of getting up, trying again and learning from your mistakes. If you keep going, trust that it will all work out eventually.
What keeps you motivated as an entrepreneur when you hit bumps in the road?
This work is truly a labour of love and we get to see items being brought back to life that may have otherwise been discarded – seeing the amazement and joy this brings our clients really is priceless. Often clients don’t think it is possible to restore their item to its former glory and yet, to us, it’s an everyday occurrence. When they are reunited with their bag and they see the results, they can’t believe their eyes – we have chocolates, cakes and thank you cards sent into the office from grateful clients. This makes our day and reminds us why what we do is so special. One client I will never forget is a lady who accidentally ruined her Jimmy Choo wedding shoes just days before the wedding. We fixed these for her in time for her big day and she was overjoyed – you can’t put a price on that and it motivates our entire team.
I would also have to say my team. I feel so fortunate to work with a team that are just as passionate and dedicated to the business as I am. I feel passionately that entrepreneurs who have achieved success have a tremendous responsibility to give back and open up the gates to future talent. I think a great example of this is our Operations Manager, Abby. Abby joined the business as a Customer Service Agent eight years ago and I personally worked very closely with her, guiding and mentoring her through each stage of her career journey and giving her the opportunities to carve out her own career path. We also have a number of team members who started with us at an entry level role and are now quickly moving up in the business. When we were a smaller operation, I tried to instil the idea that they could make their own future and path if they believed they had something that added value to the business. Because of that, some of our team felt empowered to create their own unique role, such as our Research and Development Artisan and our Commercial Portfolio Manager.
I don’t think mentoring is a title you can be given - it’s earned. I treat all of our team members how I would have wished to be treated at their age. I always make time for them, whether it’s a personal or professional issue, as it all feeds into their wellbeing, performance and attitude towards work, which in turn affects the overall success of the business.
What plans do you have for The Handbag Clinic over the next two years?
It’s been an incredible year for The Handbag Clinic – in May this year we partnered with Selfridges as part of a month-long circular initiative ‘The Stock Market at the Corner Shop’. We also launched in Fenwick York, our third store as part of a nationwide rollout programme. Later this year we will be launching in two major department stores and are currently discussing a number of international opportunities.
Having launched the UK’s first luxury care programme, The Inner Circle, we are building that community to maximise the value for our clients all year-round. We are also launching a repair collection service with a new courier partner, offering free shipping labels, enabling even more customers to have their items repaired with us throughout the whole of Europe. We’re carrying out further research and development work to create new services and expand our categories in the Clinic, including shoes and metal work.
As we continue to be approached by new luxury brands and major fashion players, we will be looking to cement these brand partnerships in the very near future.
We have also just been shortlisted for a prestigious award as one of only three finalists in our category of ‘’Sustainable Luxury’ as part of Luxury Innovation Summit and Awards. So, I will be heading to Geneva in September to present the innovative work we do for the judging panel.
Finally, we are continuing to invest in technology to enhance our business model, creating bespoke AI technology to book in and track repairs and make it easier for those buying pre-owned by providing instant valuations of our bags. For the luxury brands we work with, this will also help them work with us more closely.
