How the Best-Selling Tupperware Went Bankrupt: A Closer Look
Introduction:
How does a brand as iconic as Tupperware, once found in nearly every kitchen, end up filing for bankruptcy? It’s a question that might surprise a lot of people. Tupperware made its name for itself as a household brand and it was a part of the daily life for most of us. Did you know that Tupperware was the first one to introduce food storage solutions in the market?
They practically invented those ‘home parties’ for selling products, building community, and trust with customers along the way. But how did this iconic, household brand file for bankruptcy?
What went wrong? Why didn’t the trust and reputation of the Tupperware brand save it from bankruptcy? Read further to get answers to all your questions and learn a valuable lesson from Tupperware.
The birth of Tupperware
In this day and age, we have a lot of storage options and everywhere you look you can see containers for storage. But what about the 60s?
Back in the 1940s, people struggled to store their food and they desperately needed a kitchen upgrade. Seeing this Earl Tupper, an inventor with a big idea used polyethylene and made containers with airtight seals that kept food fresher for a long period. But he faced one major setback, that is to get this product into people’s homes.
That’s where Brownie Wise played a huge role. She joined forces with Earl Tupper in the 1950s. What she did was not sell the product but connect the people. She hosted parties. She did not do the same old boring sales pitch instead she targeted women and made them socialize, connect, and earn some extra income. These parties empowered women, turning Tupperware into a community-driven brand that spread quickly across America.
By the 1970s, the brand had become a global sensation. The brand then started selling more kitchen products apart from storage containers and soon enough, Tupperware was known for its quality and durability and it became a symbol of innovation and connection.
The Challenges Tupperware Faced
We saw Tupperware at its peak, but now let’s see the struggles it faced.
Decades ago, they were the ‘go-to’ name for kitchen storage and they were known for their Tupperware parties, people gathered, shared recipes, and bonded over these trusted storage containers. But, as times changed, Tupperware found itself in a market that felt very different.
What does that mean?
First of all, consumer behavior shifted or changed. People wanted quick and easy solutions that would not cost their wallets. And then comes competition. With so many cheaper options on the market, people started to buy Tupperware less and less.
They were soon replaced by many brands like Rubbermaid and Ziploc which offered similar items, often at lower prices. Walking down any supermarket aisle today, it’s clear that the exclusivity that Tupperware once enjoyed just isn’t there.
And let’s not forget the decline of the Tupperware party itself. The party that once made them successful became outdated. This is mainly because of rise of the e-commerce. E-commerce took over, and Tupperware struggled to adapt. Other companies quickly adapted to the digital space, while Tupperware stayed somewhat stuck in their original approach.
Recent Struggles and the Bankruptcy Filing
You must have noticed that shopping habits aren’t what they used to be. There’s been a huge rise in cheap, disposable options that fit right into our grab-and-go busy lifestyles.
Plus, with online shopping becoming the accepted practice, fewer people feel the need to wait for a Tupperware party to get quality products as they’re just a click away, with loads of options and price points to compare.
This shift made it hard for Tupperware to keep up it’s unique strategy. Then, there’s the issue of market saturation. What was once an exclusive Tupperware product now has lots of look-alikes on every store shelf. Tupperware’s party model may have worked out in the 1950s but with many developments, people moved away from in-person gatherings and preferred the convenience of online shopping.
So Tupperware lost its place just because they were not willing to adapt to the changes and stuck to its original model. All these changes created some serious financial pressures on Tupperware and its revenue and profit took a hit, and the company was struggling.
Finally, they partnered with Target to modernize their effort but it failed as Tupperware’s products did not appeal to the younger, tech-savvy shoppers who preferred trendy, digital-first brands.
Next comes the climax: COVID-19.
While there was a brief spike in demand, the pandemic ultimately put more strain on Tupperware’s production and distribution worsening the financial challenges. After years of struggling to keep up, Tupperware found itself in deeper financial trouble, eventually leading to bankruptcy.
Key Reasons Behind Tupperware’s Bankruptcy
Why did Tupperware, a brand once known in almost every household hit bankruptcy?
1. Consumer Behaviour
Most of us prefer browsing online from our phones or laptops, right?
And Tupperware took too long to enter the e-commerce game. Instead of meeting customers where they are, in this case, it’s online, they held on to their traditional model – the Tupperware party. By the time they decided to join the trend of online shopping, they had already lost ground to brands that knew how to thrive in this digital-first world. And in today’s fast-paced market, being late to the party often means missing out entirely.
2. Branding
Branding is an important aspect of any company.
For years, Tupperware stuck with the same look and feel, which might have worked decades ago but didn’t resonate with younger generations. Today’s consumers are more eco-conscious and look for brands that align with their values. Tupperware’s reusable plastics, once revolutionary, didn’t feel as special in a market now flooded with eco-friendly, trendy options. And without a fresh image or innovative products, the brand slowly drifted out of relevance.
3. Sales Model
Lastly comes their selling model, their classic Tupperware parties. They were popular in the ‘60s and ‘70s, but in today’s digital world, they just didn’t keep up. With the power of social media, direct selling has transformed entirely, yet Tupperware didn’t leverage platforms like Instagram or Facebook to reach customers effectively.
One big mistake Tupperware made was not adapting to the changes that caused all these troubles. As we are on this topic let me give you another classic example: Nokia. The Nokia brand was very popular when hand-held phones came out but once Touch phones were introduced, Nokia refused to adapt to the changes. They were left behind and even after trying to enter the market, they are nowhere to be seen.
Lessons from Tupperware’s Decline
Take a moment to think about Tupperware.
Once a household name, this brand held a solid spot in kitchens around the world. Yet, over time, its popularity waned, and Tupperware faced an unexpected decline.
So, what happened? And what can we learn from it?
1. Adapt to consumer needs.
Tupperware’s strength was always in its community-based selling which was solely focused on targeting women. As lifestyles changed and shopping moved online, Tupperware resisted the shift. On the other side, people wanted the convenience of online ordering, but the brand kept clinging to its classic model.
Consumers’ preferences were evolving, yet Tupperware wasn’t quick to follow. When a brand doesn’t adapt, it loses relevance, and that’s exactly what happened here.
2. Importance of a digital presence and brand refresh
Today, having a strong online presence is almost as essential as the product itself. Legacy brands can feel “outdated” if they don’t regularly update their image to keep up with the times. Tupperware’s lack of digital channels and minimal engagement with younger audiences left it behind.
Imagine if the brand had refreshed itself to appeal to today’s market, it could have sparked a whole new generation of loyal customers but alas, it didn’t.
3. Necessity of innovation in business models
Tupperware had an opportunity to explore new ways of selling. It might have been different if it had adopted direct-to-consumer sales sooner, or if it had collaborated with big retailers. By sticking to the old ways, Tupperware missed out on ideas that could have revolutionized its sales. In business, sticking to tradition is sometimes a risk in itself.
And one should not forget the product life cycle, which is similar to the business life cycle.
Reference image:
Once a business is in its maturity stage, it must think of new innovative ways to keep it going just like how you improve your product to stay relevant to the market.
Tupperware failed to do that, and it’s almost on it’s brink of existence.
So, What is the biggest takeaway?
Even a legacy brand needs to stay close to what customers want, evolve with technology, and be open to new business ideas, which are essential.
Tupperware had a rollercoaster journey. It taught us why you should adapt to changes and stay relevant. As Tupperware battles with bankruptcy, it’s worth considering if a comeback is still possible. What do you think? Could Tupperware reinvent itself for a new generation, or is this the end of an era?
