Private Brand More Than Cost

DeloitteThe retail landscape is evolving dramatically, as technology-enabled shoppers demand new products with higher visibility into how they are being sourced. Private Label continues to represent a significant opportunity for retailers to drive margin, differentiate products, and serve consumers’ wide–and changing–tastes.

Deloitte’s 2015-2016 Private Label sourcing survey highlights shifts in market trends and uncovers leading Private Label sourcing practices. With 388 respondents from Apparel, General Merchandise, and Grocery retailers, the 2015-2016 survey builds on the findings of our 2012-2013 assessment and dives deeper into industry trends, including:

  • More than cost: Retailers reported they are focusing efforts on product quality, speed to market and mitigating risk to satisfy consumers, with the majority ranking quality assurance programs as the top strategic response for the second year running
  • Fewer, deeper manufacturer relationships: With 3 in 4 retailers already or planning to consolidate vendors, the industry is placing bigger bets on fewer manufacturers, causing potential ripple effects that could upset the current sourcing landscape
  • Mixed success on reshoring: Reshoring production to domestic vendors was retailers’ top emerging response to market pressures with nearly one third planning to reshore in the future. However, across categories, only 50-70% of those attempting to reshore have succeeded
  • Movement in the source of supply: The survey captures retailers’ historical and projected sourcing footprints
  • The evolving sourcing organization: Retailers are making significant investments in advanced technology to manage private label sourcing, in addition to evolving the operating model, governance, and tax strategies

Explore the survey findings

2015-2016 Private Label sourcing survey

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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.