Software Industry Not Immune to Private Label Threats

While much attention has been given to the acceleration of Private Label strategies by dominant retail companies, the moves have historically been focused on packaged and durables consumer goods. Now there's evidence that branded players should take note of house brand threats in the software business.

Tesco in the UK now offers an astonishingly broad line of house brand consumer software products in six key categories: Antivirus & Antispyware, Internet Security, PhotoRestyle, Personal Finance, Complete Office , and Easy Record.

Planet Retail posts that in the UK, Tesco is rolling out its Tesco Software range with more than 200 new Tesco stores scheduled to have the product on the shelves by yesterday. Launched in October 2006, the Tesco Software range was initially introduced in 150 stores around the UK. Since then 25,000 titles have been sold, and in response to demand, Tesco has increased the total number of stores to 365. The software has been developed for Tesco by Formjet, a specialist in alternative software solutions, who also provide a comprehensive support service. Commenting on the software range Tesco buyer Daniel Cook said "Demand for home computing equipment is bigger than ever, which is why we decided to launch a choice of great value Tesco own range software equipment. We're delighted that the range has proved such a hit, and in response to this demand we're increasing the total number of stores where customers can pick up the popular software."