Tupperware and its Fall
Tupperware, the iconic kitchenware brand which has revolutionised food storage after World War II, has recently filed for Chapter 11 bankruptcy. The majority of the sales of this company still come from direct sales; however, this business model is failing to generate enough sales. After the COVID-19 pandemic, a large section of the customers are becoming a health and environmental concern. The colourful plastic containers which were once the USP (Unique Selling Proposition) of the company, now have become its main flaw.
The company plans to continue to operate during the entire bankruptcy process and seek court approval for selling the entire company to potential buyers. On 16th September 2024, the share of Tupperware was trading at 0.5099 dollars, which was down from 2.55 dollars in December 2023. In the filing with the US Bankruptcy Court for the District of Delaware, this brand mentioned that it has assets worth 1 billion dollars; however, its liability ranges between 5 billion to 10 billion. The filing has also highlighted that Tupperware has 50,000 to 100,000 creditors; hence, bankruptcy protection becomes inevitable.
The iconic rise of Tupperware
Founded in 1946 by Earl Tupper, Tupperware started as a small kitchenware brand selling colourful airtight containers for storing food. After the Second World War, the US economy was growing along with the need to store food products for longer timeframes. The company seizes this opportunity to become a global kitchenware product from a local brand with limited customers. The key to The company’s success was the unique distribution model, which is known as Tupperware Parties. These parties are typically held in the homes of the customers, mainly women, creating a relaxed and social atmosphere. The hostess demonstrates the products of the brand along with their feature, benefits and versatility.
This direct interaction allows the customers to touch and experience the products firsthand, influencing their buying decisions. There was no pressure regarding purchase; however, most of the time, the customers decided to buy the products because of social impact. The host of the Tupperware parties often receives huge discounts or free products as a reward. These home demonstrations empowered the women to become entrepreneurs and create a direct sale phenomenon, benefiting both parties. By the late 1950s the company have become a household name symbolising domestic convenience and women empowerment in the postwar USA.
The downfall
Despite gaining immense success Tupperware have failed the test of time as it is still stuck to the past. The rise of e-commerce and social media-based sales models has completely eradicated the direct sale model through in-home parties. The recent pandemic has worsened the situation, although Tupperware entered the e-commerce market late. In the initial phase, Tupperware faces little to no competition in the kitchenware segment, allowing it to become a household name.
However, the tables have turned; brands like Rubbermaid and Pyrex have introduced cheaper alternatives, and even supermarkets are selling store-branded products. Despite the shift in the customers’ buying behaviour regarding eco-friendly products, Tupperware continues to sell its plastic containers. New brands have launched eco-friendly, reusable and more versatile storage options, grabbing the market share of this iconic company.
Is US bankruptcy not hitting Tupperware India?
Although US Tupperware has filed for bankruptcy, it may not impact the Indian business. The products are manufactured locally, enabling some stability amid the global disruption. In 2024, the company completed 24 years in India, now concentrating on aggressive expansion by launching steel and glass products, reducing the dependency on plastics. The top management of this brand has mentioned that there is no panic among the community as, during the festive season, the sales are continuously growing.
In India, the company still plans to provide customers with award-winning and innovative products through their retail partner and online at Tupperware.com. The management is also holding a meeting next Wednesday to eliminate confusion and panic among the direct sellers and employees. So India is not losing its iconic “dubba” brand, which has completely revolutionised Indian kitchens and empowered housewives.
Eco-friendly alternatives to Tupperware
1. Made In
This company offers a variety of cookware and kitchenware products made with eco-friendly and sustainable materials. This company sells green food containers, which can act as an alternative to Tupperware. Made In also offers recycling products to customers where they have the scope to send back their old kitchen products in exchange for store credit.
2. Great Jones
This is a women-run brand which has gained popularity for selling non-toxic and eco-friendly kitchenware products. Every product, before getting to the shelves of the retail stores is tested by third-party laboratories to confirm all the products pass the required standards regarding sustainability.
3. Xtrema
This cookware and kitchenware brand follows the strictest certification program, as it believes in maintaining absolute transparency in the manufacturing process. This brand is committed to selling 100% eco-friendly, non-toxic products for the benefit of humanity and the environment.
4. De Buyer
This company takes their commitment to sustainability and corporate social responsibility very seriously, which is the reason it only uses eco-friendly to make kitchenware and cookware products. Although its prices are on the higher side, it is still gaining popularity among environmentally conscious customers. The customers of the company have the opportunity to shift towards these brands.
The way ahead
The downfall of Tupperware has indicated that even the top players of a sector can become absolute without innovation. The rise of e-commerce and social media businesses has made the direct sales model irrelevant. Still, the company did not showcase interest in adapting to the new market condition, leading to their inevitable doom. New research has highlighted the risk of storing food products in plastic containers related to microplastic, but this brand did not shift from there old ways.
The management of Tupperware continuously ignores the growing negative sentiment about plastic and avoids innovation; small start-ups successfully capitalise on the changing customer preferences. When The company realised this, there was no going back. This brand began to develop eco-friendly products and use e-commerce platforms; however, new businesses had already attained the market share by that time. Despite Tupperware’s viable brand name, the younger customers did not showcase interest in purchasing their products as rival brands are selling better quality products at a discounted price point.
FAQ
Why Tupperware is filing for bankruptcy?
The sales of Tupperware are continuously decreasing while its liabilities are continuously increasing, and bankruptcy protection becomes inevitable.
Will Tupperware India seize the operation?
No, in India, Tupperware will continue to operate through retail stores and e-commerce.
How did Tupperware become a market leader?
Tupperware has become a market leader with the Tupperware parties.
What are some of the sustainable alternatives to Tupperware?
Made In, Great Jones, Xtrema and De Buyer.
