Raising the Bar on Private Brand Sourcing

For the past decade, retailers have increasingly embraced private brands as a strategy to continue bottom-line growth. However, most have focused disproportionately on branding and positioning and have not fully rolled up their sleeves to address sourcing strategy and execution — which could be critical to unlocking the value of private brand profits.
Higher quality merchandise and economic pressures have convinced consumers to embrace store brands more than ever before. Worldwide, the private brand industry is approximately $1 trillion, representing 17% of global consumer spending. In the U.S. alone, private brands made up 23% of consumer goods unit sales in 2010, showing significant growth for the third consecutive year.  However, to capitalize on these trends, retailers should focus on delivering their private label brands profitably, which has become increasingly difficult due to rising commodity prices.
In this article, from consulting firm Deloitte, they outline the sourcing capabilities needed to be effective in today’s private label environment essentially the inherent investment involved when retailers become Brand owners.

DOWNLOAD REPORT



Facebooktwittergoogle_plusredditpinterestlinkedinmail
Previous articleHy-Vee Tests Its Private Brands
Next articleVintage Private Brand Craftsman Commercial from Sears
Christopher Durham
Christopher Durham is the president of My Private Brand and the co-founder of The Vertex Awards. He is a strategist, author, consultant and retailer who built brands at Delhaize-owned Food Lion, and lead strategy and brand development for Lowe’s Home Improvement. He has consulted with retailers around the world on their private brand portfolios including: Family Dollar, Petco, Staples, Office Depot, Best Buy, Metro (Canada), TLW (Taiwan) and Hola (Taiwan). Durham has published five definitive books on private brands, including his first book, Fifty2: The My Private Brand Project. In 2017, he will debut his newest book, Vanguard: Vintage Originals, a visual tour of innovation and disruption in private brand going back to the mid-1800’s. Dynamic in his presentation while down to earth and frank in his opinions, he has presented at numerous conferences, including FUSE, The Dieline Conference, Packaging that Sells, Omnishopper and PLMA’a annual trade show in Chicago. Durham lives in Charlotte, NC with his wife, Laraine, and two daughters, Olivia and Sarah.