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UK fashion manufacturers recover margins ahead of 2026
Yahoo Finance· 2025-12-10 12:25
Core Insights - The report from Unleashed indicates a recovery in sales revenue for small and medium-sized firms in Q3 2025, with an average revenue of £500,517, marking a 4.3% increase from Q2 2025 but a 4.4% decline compared to Q3 2024 [2] - The clothing, footwear, and accessories sector has adapted quickly to safeguard margins, shifting from a cautious stock-building approach to a leaner just-in-time strategy due to ongoing cost pressures and weakened demand [4][5] Group 1: Sales and Profitability - Sales revenue for small and medium-sized firms in Q3 2025 was £500,517, reflecting a 4.3% increase from Q2 2025 but a 4.4% decline from Q3 2024 [2] - Gross Margin Percentage (GMP) decreased by 2.5 percentage points from the previous quarter, indicating challenges in maintaining profitability [2] - Across all sectors analyzed, firms experienced a 12.9% quarter-on-quarter increase in sales, with GMP rising by 1.3 percentage points to 39.66% [6] Group 2: Operational Changes - Lead times shortened from 32 to 22 days, representing a 31% reduction quarter-on-quarter, while purchase orders fell by 56% and stock on hand value dropped by 33.5% [3] - The shift to a just-in-time inventory approach reflects a strategic response to reduced demand and cost pressures, as firms aim to protect margins and cash flow [4][5] - The report emphasizes the need for fashion manufacturers to leverage data for forecast-driven replenishment and real-time tracking of costs as they prepare for 2026 [5]
ShinWon to expand RFID Tunnel System to overseas subsidiaries
Yahoo Finance· 2025-12-01 11:13
Core Insights - The expansion of ShinWon's RFID Tunnel System aims to enhance supply chain transparency and accuracy in the fashion manufacturing industry [1][2] Group 1: Technology and Implementation - The RFID Tunnel System utilizes high-performance RFID readers integrated with ShinWon's Manufacturing Execution System (MES) to automatically verify product quantities during transit [1] - The technology employs AI to recognize packaging information and cross-check tag data in real time, generating packing lists and reducing packaging errors [2] - The system has demonstrated operational improvements, increasing inspection efficiency by approximately 32%, allowing the factory to check 1,740 cartons per day, equivalent to around 30,000 garments daily [4] Group 2: Supply Chain Management - ShinWon aims to achieve "Zero Claim" status by stabilizing quality through data-driven operational excellence, enabling real-time monitoring and validation of every supply chain stage from packaging to shipment [5] - The company is integrating RFID with Universal Product Code (UPC) technologies to develop an end-to-end traceability system covering all supply chain phases, including raw cotton sourcing and worldwide distribution [6] Group 3: Sustainability and Compliance - By enhancing supply chain transparency and transforming inventory management, ShinWon is strengthening partnerships with global clients and contributing to a more sustainable fashion ecosystem [3] - To ensure compliance among suppliers, ShinWon has adopted a blockchain-based traceability platform for systematic monitoring of ethical standards [7]