Average sales revenue for UK clothing and fashion manufacturers reached £500,517 (~$670,693) in Q3 2025, marking a 4.3 per cent rise quarter-on-quarter (QoQ), according to the latest figures from inventory management platform Unleashed. While this rebound signals improved trading conditions, sales remained 4.4 per cent lower year-on-year (YoY), reflecting ongoing softer demand and reduced purchasing activity.

Despite improved sales performance, profitability slipped slightly, with gross margin percentage (GMP) falling to 60.4 per cent—down 2.5 percentage points (pp) QoQ and 1.7 points YoY. The decline reflects reduced order volumes and ongoing pricing pressures across the supply chain, even as firms increased sales output.

The operational metrics revealed a decisive pivot towards efficiency. Lead times improved significantly, dropping from 32 days to 22 days QoQ—a reduction of 31 per cent. Meanwhile, purchase orders declined sharply by 56 per cent, while stock on hand fell by 33.5 per cent, suggesting firms are prioritising leaner inventory management to minimise risk and optimise working capital.

UK fashion manufacturers saw average Q3 2025 sales rise 4.3 per cent QoQ to £500,517 (~$670,693), though still 4.4 per cent lower YoY, according to Unleashed.
Gross margin percentage slipped to 60.4 per cent as firms reduced purchase orders and stock.
The shift towards leaner inventory reflects cost pressures and soft demand, with operational efficiency expected to be key heading into 2026.

Joe Llewellyn, GM of ERP Small Business at The Access Group, parent company of Unleashed, said the shift was deliberate and strategic.

“The last quarter was characterised by a determined push towards efficiency,” he noted. “Our data shows firms have moved from cautious ‘just in case’ stock building in Q2 to a leaner just-in-time strategy, cutting stock and purchasing activity to protect margins and cash flow.”

Llewellyn added that with the UK manufacturing PMI remaining in contraction through the period, firms responded pre-emptively to weaker demand signals and sustained cost pressures.

“Operational excellence will be increasingly important going into 2026,” he added. “Manufacturers will need real-time visibility of landed costs, improved forecasting, and the ability to convert excess stock into cash. Doing more with less is now the reality.”

The broader manufacturing landscape reflected similar patterns. Firms recorded a 12.9 per cent QoQ rise in sales and a 1.3 percentage point uplift in Gross Margin Percentage (GMP) to 39.66 per cent. Purchase orders fell by 30 per cent, stock on hand dropped 27.2 per cent, and lead times shortened by eight days, the report added.

With global demand stabilising but cost pressures likely to persist into next year, UK fashion manufacturers are expected to continue prioritising automation, inventory precision, and digital forecasting tools to remain resilient.

The figures signal a cautiously optimistic outlook: the industry appears better positioned than earlier in 2025, but sustained recovery will depend heavily on operational discipline, demand visibility, and navigating a still-volatile cost environment.

The report, based on data from more than 600 small and mid-sized firms, suggests manufacturers are entering 2026 on firmer footing as streamlined operations and improving sales help stabilise margins.

Fibre2Fashion News Desk (SG)

Manufacturing remains the backbone of Vietnam’s supply chain ecosystem, accounting for 49 per cent of all global supply chain (GSC)-related jobs, with textiles and textile products alone contributing nearly one-third of manufacturing’s supply chain employment. This strong industrial base underpins Vietnam’s position as the region’s largest host of GSC-related jobs, according to a report by the International Labour Organization (ILO).

Vietnam accounted for more than 25 per cent of the over 75 million GSC-linked jobs in South-East Asia in 2023. More than 35 per cent of Vietnam’s total employment is now tied to supply chains, underscoring both the depth of integration into global production networks and the moderate reliance on external markets.

The report highlighted that sectors with high GSC intensity tend to employ more women and young workers and offer higher levels of formal wage employment, though the share of high-skilled roles remains limited. Vietnam’s export orientation also exposes its workforce to external risks: over 76 per cent of GSC-related jobs in 2023 depended directly or indirectly on demand from ASEAN, China, the European Union (EU), Japan, the Republic of Korea, and the United States.

Manufacturing drives Vietnam’s supply chain strength, accounting for 49 per cent of GSC-related jobs, with textiles contributing nearly a third.
Vietnam hosted over 25 per cent of South-East Asia’s 75 million GSC jobs in 2023, though most depend on foreign demand.
The ILO urges diversification, skills development, stronger labour standards, and just transition measures to boost resilience.

Amid rising global trade uncertainties, the ILO urges Vietnam to strengthen the resilience and inclusiveness of its GSC participation. Key policy priorities include diversifying trade partnerships, building stronger domestic industrial linkages, expanding demand-driven skills development, enhancing gender-responsive labour measures, and implementing shock-responsive social protection to support just transitions. Improved job quality, strengthened labour standards, and inclusive social dialogue are also essential.

Reinforcing supply chain resilience and capitalising on new growth opportunities will enable Vietnam to advance its structural transformation, shifting towards higher value-added activities and more skilled employment—an essential step towards achieving its broader socio-economic aspirations, added the report.

Fibre2Fashion News Desk (SG)

India and France have struck a deal to revise their 1992 treaty which will halve the tax on dividends paid by Indian units to French parents, potentially saving millions for companies with major operations in the South Asian nation, documents show.

In return, India will get to widen its powers to tax share sales by French investors, and revoke the “most favoured nation” status of France that gave it certain tax advantages, according to confidential Indian government documents reviewed by Reuters.

Bilateral trade between India and France stood at $15 billion last year, and Indian Prime Minister Narendra Modi and French President Emmanuel Macron have been forging warmer ties. The two sides have been working to recast their tax treaty since 2024 to modernise it by adapting global ⁠standards on tax transparency.

“The proposed amending protocol will boost flow of investment, technology and personnel between India and France, and will provide tax certainty,” said one of the Indian government documents from August. The new treaty could have implications for large French portfolio investors as well as companies like Capgemini , Accor, Sanofi, Pernod Ricard, Danone, and L’Oreal– ⁠all of which have expanded their presence in India in recent years.

A key change is that French companies which hold a stake of more than 10% in any Indian entity will have to pay a 5% tax on the dividends they receive, instead of 10% earlier. For minority French shareholdings of under 10% in Indian companies, however, dividend tax will rise from 10% to 15%.

Many French firms’ Indian units like Capgemini Technology Services India, BNP Paribas Securities India and TotalEnergies Marketing India have declared dividends in the past, their Indian ‍regulatory disclosures show. The Capgemini unit’s ‌dividend stood at $500 million in 2023-24.

France’s tax office said it could not comment for this story given the negotiations are ongoing, while the finance ministry did not respond to Reuters’ queries. India’s ⁠foreign and finance ministries also did not respond. Capgemini and Danone declined to ‌comment while the other French companies did not respond to Reuters’ queries.

Currently, India can impose taxes on any French entity’s share sale, but ‌only when it holds more than 10% of an Indian company. The new proposed treaty will remove that threshold.

The new treaty “will provide for full source-based taxation rights in respect of capital gains on equity shares (in India),” said the Indian documents.

France-based foreign portfolio investors (FPIs) own $21 billion worth of shares in Indian companies as of November 2025, a third higher than levels in 2024, Indian share depository data shows.
And more than 40 French companies hold stakes of under 10% in Indian entities, according to an analysis by Indian market intelligence platform Tracxn.

“This will impact French FPIs in India and also French companies holding minority ‍interest in Indian companies. These investments were not subject to tax under the current treaty,” said Riaz Thingna, a partner at Grant Thornton Bharat LLP.

One official familiar with the deliberations told Reuters on condition of anonymity that Indian and French officials have agreed the terms of the new treaty, which will likely be signed in the coming weeks. In New Delhi, the deal is subject to final approval by Prime Minister ‌Narendra Modi’s cabinet, according to the documents. Reuters is ⁠the first ​to report the planned changes to India-France treaty.

India has also agreed to France’s demand to limit tax on fees for technical services to cases where a ⁠French provider transfers technical know-how, ​removing most routine consultancy and support services from the scope of India’s tax. “This can help French companies that render services like design consultancy, cybersecurity and market research,” Thingna said.

Differences over how to interpret the so-called most-favoured nation, or MFN, clause were among the main reasons for the renegotiation, the official said. If a country has an MFN clause with India under a signed treaty, it typically starts ​claiming lower tax rates if New Delhi strikes more favourable tax terms later with another OECD nation. But a landmark Indian Supreme Court decision in late 2023 said countries can’t automatically start doing so, triggering concerns in France.

“This decision led to a sharp deterioration in the legal and economic security of French companies in India. The ⁠potential additional tax cost was estimated at 10 billion euros for existing contracts alone,” said the official.

India and France have ⁠reached a decision to delete the MFN clause from their treaty which had historically benefitted only France, according to Indian government documents. That was to put an end to disagreements related to its interpretation that have led to “tax uncertainty and protracted litigation,” said one document. Switzerland in January also suspended its application of the MFN clause in its India treaty citing the Supreme Court ruling.