Retail has entered a period of rapid change-Omnichannel forces are reshaping consumer behavior and the competitive landscape, the pace of international expansion continues to grow and supply markets face more volatility and regulation. In this new environment, retailers are looking to Private Label sourcing to drive more differentiation on the shelf and to defend market share, margin and brand reputation.
To better understand this dynamic market, Deloitte conducted an in-depth study of retailers' sourcing practices. With more than 260 respondents from Apparel, General Merchandise and Grocery retailers, the 2012-13 Private Label Sourcing Survey is one of the largest and most comprehensive studies of the market to date.
Key 'mega-trends' are driving the importance of Private Label for retailers:
Rapid population growth-disproportionately located in developing regions-is opening up low-cost country sources of supply, creating new markets for retail expansion, driving commodity volatility, and fueling supply chain complexity.
The rise of the Omnichannel retail environment is driving demand for innovative and exclusive Private Label products since national branded merchandise is easily sold by online competitors.
Finally, consumer interconnectedness, enabled by social media, has led to greater transparency to
Private Label supply chains.
Our findings provide an analysis of key trends in Private Label sourcing, including:
? Top market pressures retailers are facing
? Current and emerging strategic responses to market pressures
? The evolution of value chain strategies - the activities played by retailers and their supply chain partners
? Shifts in retailers' sourcing footprints, including source of supply and vendor selection criteria
? Associated operating model, governance, technology and tax trends
