Tupperware- a kitchen and mother’s favourite essential revolutionised the way we stored food in the mid-20th century. Fast forward to today, Tupperware’s popularity seems to have dwindled, with many households opting for alternative storage solutions.
Moreover, the recent news of Tupperware Brands filing for bankruptcy marks a stark turnaround for this once-iconic brand. So, what exactly caused this shift in consumer behaviour? How did Tupperware fall from its pedestal as a household hero?
Let’s decode the reason why this once beloved brand failed to retain its shine.
How did American brand Tupperware become iconic?
Tupperware was invented by Chemist Earl Silas Tupper in the 1940s, featuring airtight seals and durable plastic material that kept food fresh for longer periods. Interestingly, plastic was manufactured for various products like wiring insulators but was not a part of households.
Made from affordable polyethylene, Tupperware could be mass-produced in an array of colours that caught the attention of housewives. However, the success of Tupperware is often associated with Brownie Wise who convinced women to use and sell these products and later became the public face of the firm.
Soon the brand quickly gained popularity through its innovative marketing strategy of hosting Tupperware parties, where hosts would demonstrate the products to potential customers. This personal touch and word-of-mouth marketing helped Tupperware become a household name.
4 key reasons for the fall of Tupperware
1. Shifts in consumer behaviour
Moving into the 21st century, consumer behaviour began to change drastically. Thanks to the rise of digital commerce, it transformed how people shop, favouring convenience and speed over personal interaction.
With platforms like Amazon and a myriad of online retailers, consumers increasingly preferred to purchase products with a few clicks. This shift left Tupperware struggling to adapt, as its sales model became less relevant in a fast-paced digital landscape.
2. Market saturation and competition
Additionally, Tupperware faced intense competition from both established brands and newcomers offering similar products at lower prices. The market for food storage solutions became saturated with alternatives, including disposable options and trendy glass containers, which appealed to a more health-conscious audience. Tupperware’s traditional image as a durable and long-lasting solution started to weaken as consumers looked for modern, eco-friendly options.
3. The impact of COVID-19
The COVID-19 pandemic had a significant impact on Tupperware’s business, leading to a decline in sales due to lockdowns and social distancing measures. Although the company attempted to shift to a multi-channel sales approach in India by opening 55 exclusive brand stores, it was slow to adapt, further hindering its recovery.
Tupperware made changes in its leadership, appointing Laurie Ann Goldman as the new CEO, and implemented alterations in its business strategy. However, its inability to evolve effectively left the company in a vulnerable position.
4. Rising financial struggles
These changes did not happen overnight. Tupperware has been grappling with declining sales since 2019 due to global supply chain disruptions and increasing resin prices.
The company struggled to adapt to changing consumer preferences and marketing trends. As a result, it was unable to sustain its operations, leading to the decision to close its only US factory last year and lay off nearly 150 employees.
Recent reports indicate that Tupperware is preparing to file for bankruptcy. The company’s estimated assets are between $500 million and $1 billion, with estimated liabilities ranging from $1 billion to $10 billion. With a debt of $700 million, the company is seeking court protection after violating the terms of its debt according to the report.
The bottom line
The decline of Tupperware can be attributed to shifting consumer preferences towards sustainability and aesthetics. Despite once being a kitchen essential, Tupperware’s inability to evolve has led to financial trouble, serving as a cautionary tale for iconic brands on staying current in the market.
