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Okewa Domed Peacoat and Oversized Patch Pocket Coat from the Recycled Line (Photo: Supplied)
Okewa Domed Peacoat and Oversized Patch Pocket Coat from the Recycled Line (Photo: Supplied)

BusinessAugust 10, 2018

The Wellington couple making raincoats from plastic bottles

Okewa Domed Peacoat and Oversized Patch Pocket Coat from the Recycled Line (Photo: Supplied)
Okewa Domed Peacoat and Oversized Patch Pocket Coat from the Recycled Line (Photo: Supplied)

Every week on The Primer we ask a local business or product to introduce themselves in eight simple takes. This week we talk to Nick Leckie, co-founder of rainwear company Okewa which is currently running a Kickstarter campaign to raise money for its newest product line – raincoats made from recycled plastic bottles.

ONE: How did Okewa start and what was the inspiration behind it?

Okewa, meaning ‘large grey raincloud’ in te reo, started as a seed of an idea for co-founder Nevada Leckie while studying fashion design. We’ve always lived here in Wellington without a car which, given the sometimes horizontal rain, necessitates a great raincoat or two. We’d never been able to find waterproof raincoats we could get excited about – you either opted for an outdoor adventure option to keep dry, or had to sacrifice performance. Nevada picking up garment construction and pattern making skills at fashion school basically got her started on the idea of a more well-designed product that also prioritised performance.

TWO: Did you have any interest/experience in business or entrepreneurship prior to starting Okewa?

No prior experience in business, but lots of interest! We’ve been learning on the job really. I studied and worked in architecture prior to Okewa. I later joined Nevada to work on business development while she leads on all the creative aspects. I’ve always been really interested in entrepreneurship in a devourer-of-podcasts (ie: How I Built This with Guy Raz) kind of way. There’s something about the tale of creating something meaningful from nothing, like how a British couple turned their backpacking travels together into Lonely Planet, or how Yvon Chounaird turned a need for quality climbing gear into what is now Patagonia.

Okewa founders Nevada and Nick Leckie (Photo: Supplied)

THREE: What was your inspiration for launching your new line of coats made from recycled plastic waste?

Learning more about the colossal plastic waste issue we’re all facing got us started working on our Recycled Line. For example, on our current trajectory, there could be more plastic than fish in the sea by 2050, and we need to do a better job of expanding the useful life of material already in circulation. There’s certainly a desperate need for our fashion industry to move to a much higher level of consciousness around environmental issues.

FOUR: How is this new recycled material made?

The first step is bottles get separated into clear and non-clear (our fabric uses clear bottles). These bottles are broken up into a flake, which then gets melted down and extruded into a polyester yarn (think squeezing a thick liquid through a very fine spaghetti maker!). This is then spun into a thread and woven into a fabric which gets a breathable membrane applied. The end result is a beautiful soft fabric, with a waterproof rating of 10,000mm.

The plastic fashion process (Photos: Supplied)

FIVE: Where and how do you source your raw materials and labour for Okewa’s Recycled line, as well as Okewa’s products in general?

For our 100% recycled fabric, we’re working with our Bluesign-certified Taiwanese fabric supplier. Bluesign is a Swiss-based environmental accreditation programme ensuring high environmental performance standards are maintained at partner facilities. Our fabric recycles plastic bottles from Japan, which makes sense to keep the shipping footprint of the material to a minimum given the fabric gets woven up at a Taiwanese mill.

On the garment making side, our Recycled Line is an exciting opportunity for us as we’re working with a new high-quality partner in Thailand. This partner makes for some of the world’s best luxury brands and is at the forefront of sustainable and innovative manufacturing, so it’s great to be working with them as an emerging brand. It took a 7-month long search from New Zealand to Portugal and a lot of places in between to settle on this team. This was after, unfortunately, the last possible New Zealand maker who could work with us on our niche product was no longer able to accept orders from us late last year.

SIX: How many recycled plastic bottles do you need to make one coat from your new line?

Our long coats (like the blue Column Coat) reuses 31 plastic bottles. Our shorter jackets reuse 22.

L-R: Oversized patch pocket coat, Raglan Domed Jacket, Raglan Domed Coat (Photos: Supplied)

SEVEN: What plans do you have to scale/grow further?

Physical retail is important for growth for us, and we’re looking forward to expanding our Pop-Up programme which has so far been Wellington-focused. The short-term retail/pop-up model works really well for us.

On the product side, our current offering is mid-weight (perfect for temperate rainy climates like New Zealand), and we have plans to expand this to light and heavy weights too which will open up new opportunities. Rethinking what a raincoat can be keeps us busy!

EIGHT: Lastly, tell us about a New Zealand start-up or business that you really admire right now.

We just discovered R3pack and love what they’re doing supplying plant-based compostable and 100% recycled packaging. We’re hoping to send out our Recycled Line Kickstarter orders out in their bags (if we meet our funding goal!). We also love the restless energy of people like Jonny McKenzie who started posBoss to help hospitality businesses run smoothly. He’s also put his bartending skills to work with his co-Founder Amy to launch pre-bottled quality cocktail brand J.M.R & Co.


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Three men looking sad about business confidence (Image: Getty Images).
Three men looking sad about business confidence (Image: Getty Images).

BusinessAugust 9, 2018

Business confidence is a hopeless indicator. But that doesn’t mean the economy isn’t in trouble

Three men looking sad about business confidence (Image: Getty Images).
Three men looking sad about business confidence (Image: Getty Images).

Business confidence has fallen off a cliff. Economist Cameron Bagrie says it’s meaningless, but other bad indicators can’t be ignored. 

The economy is headed for recession if you believe the readings from business confidence. Thankfully we can largely ignore business confidence readings.

We can’t ignore other survey measures though that are saying growth has slowed and the official statistics are showing the same. The last three quarterly GDP prints have been 0.6, 0.6 and 0.5% and we only have data up to March 2018. That’s annualised growth in the low 2’s and a dip below 2% now looks likely. We have the potential for a growth pothole. That is becoming a concern as the wheels of the economy need to be turning and tax revenue coming in the door for social agenda demands to be met.

A whopping net 45% of firms are pessimistic about the general economy according to the ANZ Business Outlook survey. That’s a level last seen around the global financial crisis. Of course, no one really believes things are that bad. We can’t blame the global scene as other countries would be seeing massive falls in confidence too if that was a key factor. Other countries are not. The New Zealand Institute of Economic Research (NZIER) is showing weak readings for business confidence within their Quarterly Survey of Business Opinion (QSBO) too.

The good news is that business confidence is hopeless as an economic indicator. The correlation with economic growth is poor and I largely ignore business confidence readings. Changes in direction can provide some insightful information – whether things are picking up or slowing down, but not the levels.  

Businesses tend to be more upbeat regarding general confidence about the economy under a blue flag as opposed to a red one. Business confidence averaged minus 18 between 2000 and 2007. The economy (measured by real gross domestic product) grew on average by more than 3.5% per year. Yep, confidence was negative, but growth was positive. So, we ignore business confidence as an economic indicator. This is nothing new. It’s surprising headline business confidence figures receive so much attention.

Commentators make the constant mistake of saying the ANZ survey is a business confidence survey. The same applies to the NZIER’s QSBO. They are surveys of business views across an array of key indicators including prospects for growth, hiring, whether firms are planning to invest and experiences with inflation / costs. These indicators matter. Business confidence is one question.

The so-called “soft” or “perception” indicators are the hard data of tomorrow. They are estimates and view based but you can’t ignore them. They are well correlated with growth.  

In a perfect world we’d have timely “hard” official data and statistics. We don’t. Official data comes with a lag. So, we need to rely on sentiment-based indicators if we want timely readings on the economy and a guide as to the year ahead.  

The likes of the ANZ survey are showing a sombre mood when it comes to indicators that matter. The ANZ survey asks key questions about activity, employment, investment and profitability. When these indicators head to zero, which they have done now, growth can do the same. Those indicators were weak in 2000 during the so-called winter of discontent – and growth slowed to 0.9% year on year.

Growth did rebound. But back then the economy was early in the economic expansion. The economy is late in the business cycle this time around. The economy has tended to go through a ten-year cycle, so businesses are naturally looking more nervously over their shoulders at present. The economy is going through substantial economic change too and businesses are wary. There is little argument over the need to change the economy. However, there are serious questions about the actual economic plan and what the new economy looks like. That is a key issue that needs addressed.

Some of the weakness in survey measures could be put down to the way survey questions are phrased. Firms are asked their view and given three options; will conditions improve, stay the same, or worsen. For a lot of firms’ things are damned good. It’s telling that finding skilled staff is the biggest problem firms are facing. Businesses are facing capacity constraints. So, zero readings may reflect a levelling out at a high base.

I also pay close attention to the gap between headline business confidence and what firms’ views are on prospects for their own business. This is a proxy for uncertainty and does influence the investment cycle. Firms tend to invest less when uncertainty is high. That uncertainty gap is wide at present and investment intentions are flat.

A common misperception towards various confidence surveys is that they reflect the (biased) views of a narrow bunch of corporate CEOs. This is not the case. More than half of the respondents to the ANZ’s survey comes from firms who employ less than 20 employees. The survey is not weighted by firm size, so the voice of the small firms carries equal importance to large businesses. So it’s a puzzle why some think the negative survey responses are just the biased views of a few CEOs.

Surveys which take on the views of those at the top and the key decision makers tend to come in more upbeat, or at least less downbeat. Suncorp’s Business Success Index (though surveyed at the end of 2017) sampled the key strategic decision makers of a large sample of businesses and they were optimistic about the general economy. The ANZ survey was showing a negative reading for business confidence at the end of 2017. So, it’s hoopla to say senior management and big corporates are biasing surveys.


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