Tupperware is facing an existential challenge and reports say that the company may cease to exist. This was a topic that was discussed at a session we had at the Harvard Business School – India Alumni chapter. Professor Das Narayan Das pointing to Tupperware was of the opinion that the company’s demise is largely driven by the huge change in American demographics and the aspiration of the new American women.
The company was one of the pioneers of what we call ‘Multi-Level Marketing’ or ‘Network Marketing’. Legend has it that the founder spotted Brownie Wise, who was housewife based in Florida, a top seller of Tupperware and made her head of marketing. She then evangelized the idea of ‘party plan marketing’. This idea built Tupperware into one of the most successful companies and Tupperware parties became part of American popular culture.
What was the secret of its success? Tupperware’s sales was driven by housewives who organized tea-parties at their homes. They invited friends and acquaintances to drop by, chat a bit, have some snacks and may be buy some Tupperware products that were on display. Tupperware sales ladies also recruited potential sellers and they earned a commission on the sales by those who they hired [multi-level marketing as we know it was born].
Tupperware made their products with high quality plastics, and also created some innovative box designs and bottles; their ‘burping’ boxes were a hit, so were their pastel coloured water bottles. But things were changing in the US in the 2000s.
Tupperware sales had been sliding for years. Prof Das explained that during the Covid period Tupperware saw an uptick in its sales and this may have dulled the company into believing that happy days were back. What they probably did not understand was that Covid had made people seek out safe places to go to and stay at home more often than not. This created a demand for more Tupperware type products and the Tea Parties were popular again.
It is possible during Covid due to WFH young homemakers were ordering out more food, which got delivered in reusable containers. These boxes could have become an indirect competition to Tupperware. Add to this the fact that youngsters tend to store food in the same containers that they got delivered in, eliminating the need to create a new storage system. There is also a growing trend towards non-plastic containers in some of the more evolved markets.
While there were the push and pull being faced by Tupperware, there was also a big socio-demographic trend. Women were wanting to go back to work and some even figured out that they could do serious work from home, not just host Tupperware parties. Why sell Tupperware and attend Tupperware parties if you can be a valuable content creator or counsellor or tuition teacher or legal advisor from home, attending Zoom meetings.
Tupperware tried expanding its footprint by trying to sell its products in supermarkets like Target, but it was too little too late.
Experts also point out that Tupperware did not invest enough in product innovation and design. Brands like Ziploc [which was acquired by S C Johnson some years ago] have managed to create a pipeline of exciting products and have grabbed valuable real estate in supermarkets across the US.
Will Tupperware be able to find a new song to sing? It is possible that the brand and the company may get acquired by an organization that sees a strategic fit. They may also be able to invest in new product development, new GoToMarket strategy and strategic alliances. Or we may even see the brand getting sold off to different companies in different parts of the world; Indonesia was a big market some years ago and may attract a local buyer, for example.
Tupperware’s unique way of selling through parties may never come back.
Appeared originally in Storyboard 21 April 2023