Deloitte’s 2012-13 Private Label Sourcing Survey highlights shifts in market trends and uncovers leading Private Label sourcing practices. Key findings include:
- The top market pressures faced by retailers include cost increases/volatility of raw materials, rising production labor wages, and fuel price unpredictability
- These cost pressures are creating strategic responses such as diversifying the country source of supply, re-shoring, and vendor consolidation
- For Apparel and General Merchandise source of supply, Southeast Asia countries like Vietnam and Cambodia are providing an attractive alternative to China
- Top vendor selection criteria include cost, quality, and customer service
- To manage the sourcing function, retailers are utilizing a mix of operating models, including both in-house and outsourcing models
