Tupperware Tumbles by Becky L. Amble

What has happened to cause the decline in the Tupperware company? Yesterday Tupperware warned that they might not be able to survive. Their stock dived nearly 50%, closing around $1.25. Five years ago the stock was trading around $45 with an all-time high in 2014 of around $94.

Here’s what my research uncovered. It boils down to leadership not being in touch with the market and staying on top of trends and changes in preferences and demographics.

Most of us are familiar withTupperware. In fact, some of us are huge fans! (Frankly, I love my Tupperware!) We grew up with Tupperware, our mothers bought Tupperware and many of us did too! I was so disappointed, really dismayed, to see the headlines yesterday.

Tupperware?is an American home products line company. The main products include those for home and kitchen for preparation, storage, and serving food. Earl Tupper?developed his first bell-shaped container in 1942 and launched the products in 1946.

Ownership has changed over the years. Most of us know the company for its direct sales organization which for years sold through Tupperware Parties that are still done in other parts of the world. As of 2007, there were approximately 1.9 million direct salespeople selling Tupperware products.

In 2013, the top marketplace for Tupperware was?Indonesia with sales of more than $200 million, followed by?Germany?as the second highest sales market.

Tupperware, which is known for its plastic food storage containers, has faced several challenges that have contributed to its decline in recent years.

Here are some of the key factors leading to the company’s decline:

1. Increased competition: Tupperware has intense competition from a variety of other companies that offer similar products at lower prices. These include Rubbermaid, Pyrex, and Glad.
2. Changes in consumer preferences: As consumers became more health-conscious they moved away from plastic containers to glass, silicone, and other materials.
3. Shift to online shopping: Tupperware built the company through in-person sales parties to sell its products. The shift to online shopping has made this approach less effective.
4. Economic downturns: Company sales have been impacted by economic downturns in certain regions, such as Latin America.
5. Management issues: There have been management issues in recent years, including a CEO resignation in 2018 and financial irregularities at its Mexico business.
6. Changing demographics: Throughout the years, Tupperware had a strong customer base of middle-aged women. As this cohort aged, the company didn’t develop strategies that were effective with younger customers.
7. Lack of innovation: Industry experts say the company didn’t innovate and update products to meet changing consumer preferences.
8. Environmental concerns: Consumers have become concerned and more sensitive about the environmental impact of disposable plastic products. Experts are concerned about the sustainability of Tupperware's business model built on plastic products.
9. COVID-19 pandemic: The model of in-person sales was disrupted during the COVID-19 pandemic. Tupperware shifted to online sales with some success and this also caused a challenge for those in direct sales.

What can we learn from the Tupperware example? It clearly shows how important it is to stay on top of customer preferences, trends and changes affecting not only the customer, but how people shop and buy. ?We need to constantly be listening to customers. This starts with asking questions and documenting the answers we get. Having a structured market research or customer intelligence system is absolutely essential, even more so in today’s competitive and changing marketplace. Is this something you need to get working on in 2023?

Becky Amble?has spent over 25 years leading organizations to grow and increase profits through cutting-edge marketing strategies, market information and future trends. She has worked as a general manager and Vice President in corporate America and been a consultant and factional marketing resource for Fortune 50 companies to micro businesses.?She has successfully navigated in over 30 different industries in the B2B space from med tech to professional service firms.?She is a bestselling author of over 10 books and numerous articles.?She continues to help her clients grow by identifying market needs, demographic trends and results-oriented business strategies.

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