Are you someone in the age group of 40-60 in urban India? Chances are, you have heard of or been a part of the famed Tupperware party.
Tupperware—a name that once symbolized innovation, empowerment, and household convenience—has witnessed a dramatic transformation from a kitchen staple to a brand grappling with bankruptcy. The brand recently filed for bankruptcy in the USA and has completely withdrawn operations from Australia. Not long ago, the brand was operational in over 100 countries!
In this blog post we are looking at the reasons why Tupperware went from boom to bust and is the party really over for multi-level marketing? We will also look at marketing lessons from Tupperware story
History of Tupperware
Introduced in the mid-20th century, Tupperware revolutionized food storage with its iconic airtight containers and its unique direct-sales model, empowering countless homemakers with “Tupperware parties.”
Founded in 1946 by Earl Tupper, the brand introduced airtight, stackable containers that revolutionized food storage. In the 1950s, Tupperware parties, pioneered by Brownie Wise, became a groundbreaking direct-sales model, empowering women globally. The 50’s was an era for social gatherings and this direct sales model worked wonders in the post war urban American households that were also seeing a growing women participation in work and education.
Tupperware Timeline
Founded in 1946 by Earl Tupper
1960’s – Tupperware goes public
By 1970’s expanded to over 100 countries
1980’s – Most of the Tupperware patents expired, leading to stiff competition and saturation
The 1980s and 1990s saw the company diversify its product lines, adding microwavable and eco-friendly containers.
2013 – Sales revenue peaked at 2.67 billion with strong presence in Asia Pacific.
What went wrong with Tupperware?
Tupperware, once a pioneering force in direct sales and a household name for plastic food storage solutions, has faced significant challenges leading to its bankruptcy filing and the cessation of operations in markets like Australia. From a marketing perspective, several factors contributed to its decline:
1. Overreliance on Traditional Sales Models: Tupperware’s iconic “Tupperware parties” were revolutionary in the 1950s, empowering women and creating a unique direct-sales channel. The party model of direct sales was popular in emerging markets that Tupperware entered like Asia Pacific and hence they continued to see growth even till 2013, however as the internet penetration increased, Tupperware failed to realise the shifting consumer behavior.Tupperware was slow to adapt to online shopping and e-commerce, resulting in a diminished market presence.
“ Tupperware started selling online only in 2020 in India and in the USA it went online even later, in 2022”
This is nearly 20 years late, especially if they were trying to catch the attention of a young demographic ( newly married, upwardly mobile women and men)
2. Increased Competition and Market Saturation: The expiration of Tupperware’s patents in the 80’s led to a surge of competitors offering similar products at lower prices. This intensified competition eroded Tupperware’s market share, as consumers had more affordable alternatives.
Tupperware did not seem to focus on retaining their market share or focusing on creating a more cost effective option. Their range was always premium for masses and not so classy for the elite. Experimenting with material, variety and look might have helped them capture one segment of the market.
3. Shifts in Consumer Preferences: Modern consumers increasingly prioritize sustainability and environmental responsibility. Tupperware’s plastic products faced criticism amid growing environmental concerns, and the company struggled to reposition itself in a market favoring eco-friendly materials.
4. Product+Market Fit Crises? As younger consumers became their target audience, they seemed to have missed their target persona. Traditionally what worked for Tupperware in emerging markets was the income stream that it offered to women who couldn’t work outside and women who liked to keep their kitchens organised.
As the younger women started stepping out to work they wanted convenience and sustainability. They also didn’t want their kitchens to look like their moms! Women in Indonesia and India preferred buying online and with cheaper products flooding the market, it came down to costs.
An innovative product line like insulated or reheatable tiffins, dual use boxes like organizer cum food savers, or even a sustainable dinner set for two in latest trending colours might have moved the needle, but it was also about understanding the product+market fit. While their pitch has always been plastic, they could have talked about reusability and innovated in terms of material.
Strategies That Could Have Helped Tupperware Adapt:
- Embracing Digital Transformation: Investing in e-commerce platforms and digital marketing could have expanded Tupperware’s reach beyond traditional home parties, aligning with modern shopping habits.
- Product Innovation with Sustainable Materials: Developing eco-friendly product lines would have addressed environmental concerns and appealed to sustainability-conscious consumers.
- Recycling Tupperware – A buyback model of taking back old tupperware and recycling them too could have helped the business build a sustainable brand image.
- Diversifying Sales Channels: Collaborating with retail partners and exploring omnichannel strategies could have reduced reliance on direct sales, making products more accessible.
“Even today (2023) their maximum revenue (90%) was generated from direct sales.”
Is the Era of Colorful Plastic Over?
While plastic products face scrutiny due to environmental issues, the demand for durable, reusable containers persists. The key is innovation in materials and design to meet sustainability standards. Companies that adapt by offering eco-friendly alternatives can continue to thrive.
Tupperware seems to have learnt its lesson and while it is filing for bankruptcy in the USA, it seems to be going steady in India. They have already shifted gears are are moving towards a digital first company and the sustainability message too is loud and clear. The only thing that they need to focus on now is the need of Indian consumers and design products accordingly.
Indians love their storage, but with a usual household of 4 people Tupperware needs to come with stackable storage with larger quantities. We love our tiffins spill proof, but they should have relevant containers for dal, roti or sabji. Similarly the cost component will be an important factor to stay relevant in the crowded market. Localisation in terms of language and product design too might help. They could start with redesigning their website, which currently looks dated.
Relevance of Multi-Level Marketing (MLM) Today:
MLM remains viable in sectors where personal relationships and product demonstrations are crucial, such as:
- Health and Wellness Products: Supplements and fitness programs benefit from personalized selling.
- Beauty and Personal Care: Cosmetics often rely on demonstrations and trials.
Applicability for MSMEs in India:
Micro, Small, and Medium Enterprises (MSMEs) in India can consider MLM as a marketing approach if:
- Products Require Demonstration: Items that benefit from personal explanation or demonstration can leverage direct sales.
- Targeting Niche Markets: MLM can effectively reach specific consumer segments through personalized networks.
Marketing lessons for MSME’s
However, MSMEs should be cautious of the challenges associated with MLM, including regulatory scrutiny and the need for substantial training and support for the sales force. What tupperware achieved in its early years was building connection and empowering women by giving them an additional income stream.
If MSME’s can focus on such concepts like helping women get back into the workforce or leverage the power of connections for their product marketing, they can use some form of MLM for their promotion. For example – An MSME creating healthy kids snacks can focus on creating a network of moms who have to host playdates regularly. Healthy and pocket-friendly snacks that can be served at a moment’s notice would be a great way to spread brand awareness and get real time feedback from the consumers. Providing loyalty points or some alternate revenue stream to any mom who promotes the brand is a form of marketing that relies on connections and network.
Conclusion
In summary, Tupperware’s decline highlights the necessity for brands to evolve with changing consumer behaviors and market dynamics. Embracing digital transformation, sustainable practices, and diversified sales strategies are crucial for enduring success in this ever evolving market.
