Apr 12, 2023
By: Srishti MaganRecently, Tupperware released a statement announcing it may not have adequate liquidity in the near term. It also added that there was "substantial doubt about its ability to continue as a going concern.”
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After Tupperware’s announcement, its stock price plummeted by nearly 50 percent, even as the Twitterati started discussing the iconic brand that was, at one point, an integral part of every household kitchen.
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It’s no secret that there was a point when Indian moms could deal with children losing marks but not Tupperware boxes. Tupperware’s storage containers prevented leakage better than traditional steel, aluminium or copper containers. They were also more stylish, lightweight and more colourful than other containers present in the market.
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It wasn’t just their usefulness that led to moms choosing Tupperware. It was also their direct- selling model. Tupperware entered the India market in 1996 and led to the birth of multiple mompreneurs - housewives and moms who’d sell Tupperware products from their houses.
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Direct selling is a business model where a party buys products from a parent organisation and sells directly to customers. Tupperware enabled housewives to become saleswomen and earn additional incomes without the hindrance of economic status or educational qualifications.
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As of 2020, Tupperware had 50,000 active consultants in India selling its products. India’s head office is in Gurugram and it has a manufacturing facility in Dehradun.
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Tupperware’s founder was chemical engineer Earl Tupper. He founded the company in 1946, after creating polyethylene air-tight and water-tight products with a double-sealed lid that prevented spills and leaks. But it wasn’t an instant hit.
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When Tupperware first came into departmental stores, people were unsure of its efficacy. But after single mom Brownie Wise started demonstrating the product during her sales pitch, it started selling like hotcakes.
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Slowly, Tupperware moved from retail to a direct-selling concept, completely abandoning in-store sales in 1951. In the 1950s and 1960, Wise introduced Tupperware parties where women held small parties and sold Tupperware products after demonstrating their use.
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Tupperware enjoyed dominance in the kitchen for a long period of time, even retaining its market share in the face of cheaper alternatives. But limited innovation in the product range, rising concerns about using plastic and the birth of online sales channels led to its decline.
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As per reports, the brand moved back to retail stores and even expanded its product range to attract a younger audience, but revenue continued to slide. Currently, the company is working with financial advisors to secure more money and investment - but the future of the 77-year-old storage giant is uncertain.
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