Knitting together a business

Press, 26 May 1984, Page 22

Knitting together a business

By

NEVIN TOPP

In these times of high unemployment, an advertisement stating a firm has 500 hand-knitters and is seeking a further 400 people causes quite a stir. This is what Outbak Clothing Company, Ltd, of Christchurch, has done, but the organisation of handknitters resembles more a “cottage industry” because all the knitters on the firm’s books work out of their own homes. Mr Perry Ingram, a director in charge of marketing and administration, says that most of the knitters make garments for the firm for pleasure and interest, and a small category make them for money. The knitters take from one week to two months to complete the garment, as it is all done in their own time. Winter is the best time for production because people stay indoors more, hence the advertisement in the national dailies for knitters. There has been a strong growth in tourism recently and consequently a big demand for hand-knitted garments in New Zealand because of the craft and quality, and the functional nature of the clothing too, he says. At the moment, Outbak Clothing is building up its stocks for the next tourist season, which starts about September. The firm does not handle homespun yarn, but works in undyed natural yarns from 4-ply weights through to bulky knits, plus a limited selection of fine mohair styles, Mr Ingram says. The firm took on a qualified knitwear fashion designer six months ago, and the professional appraisal of the garments and the improvements in style have been significant, Mr Ingram says. “It takes a lot to get a

garment into work with all the bugs taken out of the pattern." Patterns vary according to knitwear sizes so that if the problems are taken out before the knitter works on the garment then it is better for both the firm and the knitter. Taking on a knitwear fashion designer has not meant that the company has lost the natural hand-made look, because it is still very much in demand, he says. One problem that has hit Outbak Clothing was an interpretation by the Department of Inland Revenue, which required the firm to deduct PAYE tax on the knitters’ payments before the cheques were sent, and this caused a 30 per cent drop in the knitters on the firm’s books. Previously, the knitters were deemed by the department to be self-employed. Mr Ingram says. "However, we have adjusted our rates to compensate the knitters because of the tax question," he says. There is quite a bit of variation among the knitters. Some knitters prefer making the same style because they are familiar with it, while others enjoy the challenge of making something different. Also a number of knitters cannot handle wool with a greasy content because of an allergy. The firm is required to hold quite a bit of yarn in stock in case of shortages. At least as much stock is held on hand as is being sent to knitters throughout the country, he says. The hand-knitted garments are sold at the Outbak Leatherware N.Z., Ltd. shop in Colombo Street, and also at 10 independent shops in the main tourist areas of New Zealand, including Auckland, Rotorua, and Queenstown.