From price-driven to strategic growth lever
66% of consumers choose private labels for strong value for money—even beyond food.
What was once seen as a price-driven alternative is now a strategic lever for margin, loyalty, and differentiation in non-food categories, where quality expectations and brand perception matter most.
Our new BCG × Inverto report shows what’s driving this shift and how leading retailers are strengthening their non-food private labels across sourcing, brand building, and omnichannel execution.
Yet, winning in non-food private labels starts long before the product reaches the shelf. Supply chain and sourcing decisions determine cost position, quality consistency, and speed to market.
Download the report to learn how retailers can win in non-food categories.
Why This Report Matters Now
The shift in non-food private labels is no longer theoretical, it is already reshaping competitive dynamics in retail.
As private labels gain acceptance as credible, high-quality alternatives, expectations in non-food categories are rising -an effect reinforced by the growing normalization of “dupes,” particularly among younger consumers.
At the same time, the economic case has become increasingly compelling:
- Advanced sourcing and supply chain approaches can unlock 10–14% FOB savings, translating into 3–5 percentage points of gross-margin uplift.
- Cross-country bundling and assortment harmonization offer an additional 4–8% COGS reduction, without compromising quality.
- AI-driven demand forecasting improves accuracy by 10–20%, reducing markdown risk and supply chain inefficiencies in non-food categories.
For retailers facing persistent cost pressure and intensifying competition from national brands, these dynamics make one thing clear: non-food private labels are not optional, they are a strategic priority.
In this BCG × Inverto report, we show why leading retailers are rethinking sourcing as a strategic enabler, balancing cost efficiency, resilience, and brand promise to build non-food private labels that deliver sustainable advantage. Fill out the contact form below to receive the complete study by email.
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