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. For more information, please visit: www.deloitte.com/us/2015privatelabel.

1. 2015–2016 Private Label Sourcing Survey
Shifts in countries and capabilities
Deloitte’s 2015–2016 Private Label Sourcing Survey highlights shifts in market trends and uncovers leading Private Label sourcing practices.
The survey remains one of the largest and most comprehensive Private Label sourcing studies to date.
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Key Private Label Sourcing Pressures
Shifts in Source of Supply
Raw material cost increases and/or volatility
Demand for increased speed to market
Evolving product trends causing shifts in consumer demand
Cambodia,
Bangladesh,
Indonesia and Thailand
all showed growth from
2013 to 2015 but are
forecast by respondents
to decrease in
popularity over the
next two years
Private Label
accounts for more than
$1 in every $6
of spend in
the United States*
1
2
3
4
5
6
7
8
9
10
Below
top ten
Bangladesh
Canada
Cambodia
Indonesia
Hong Kong
Thailand
Vietnam
Italy
Chile
India
Mexico
China
Brazil
Vietnam
China
Mexico
Cambodia
Bangladesh
Hong Kong
Indonesia
Thailand
Italy
India
Chile
China
Canada
Mexico
India
Italy
Hong Kong
Brazil
Chile
Indonesia
Bangladesh
Cambodia
Thailand
Vietnam
20152013 2017 (expected)
Brazil
Canada
* The state of Private Label around the world (Nielsen, November 2014)
It’s not just about cost anymore: Last survey, the top 3
pressures were cost-related. This year, it’s a mix of cost,
quality and speed to market
All strategies point to deeper, more strategic partnerships.
With 76% retailers already or planning to consolidate vendors,
the industry is placing bigger bets on fewer manufacturers.
China and Mexico remain consistent
top sources, with Vietnam rising fast.
Strategic Responses
Top 3 Emerging Responses:
32% Reshoring production to domestic vendors
28% Implementing vendor performance management
Top 3 Currently Employed Responses
60% Enhancing quality assurance programs
57% Use of advanced planning/scheduling
29%
Aligning metrics and systems to foster
supply chain partner collaboration
60%
Engagement in innovation/product
design/R&D collaboration with vendors
Only
50–70%
of surveyed retailers
reported success
with reshoring
Survey Respondents
388 respondents acrossthree categories:
50%+ of respondentshave annual revenue
greater than $1B
70 countries noted assources of supply
Apparel
General Merchandise
GroceryRetail Trends Driving Private Label’s Importance
Private Label sourcing is helping retailers navigate these
trends through greater control of the assortment, visibility
to the supply chain, and deeper supplier partnerships.
Innovating
across
the retail
ecosystem
Omnichannel
operating
model
Customer
insights
Regulatory
pressures
Conscious
consumerism

2. This publication contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this publication, rendering business, financial,
investment, or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect
your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be
held responsible for any loss sustained by any person who relies on this publication.
Copyright © 2015 Deloitte Development LLC. All rights reserved.
Member of Deloitte Touche Tohmatsu Limited.
About
The 2015–2016 Private Label Sourcing Survey was conducted online by Deloitte in 2015. Over 388 respondents provided input across three
spend categories (Apparel, General Merchandise and Grocery). Because respondents could submit responses for multiple sub-categories, over
700 responses were collected. Approximately 53% of respondents are from companies with annual revenues greater than $1B, and 42% of the
companies represented have more than 10,000 employees.
Learn more
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www.deloitte.com/us/2015privatelabel
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