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Neya Arvindh

Survival of The Fittest — The Downfall of Tupperware

Updated: Oct 13


 

From Kashmir to Kanyakumari, no matter the dish— be it chole masala or dosa batter — Tupperware has seen it all. Tupperware wasn't just known to be a brand but rather an emotion. The vibrant colours and resilient designs enabled these containers to achieve immediate popularity. Tupperware was different, contrasting the bulky and leaky stainless steel containers used in India. Tupperware brought life to the kitchen. But despite its immense popularity, Tupperware had to face its battle of bankruptcy.


With its business models struggling to adapt to the rise of e-commerce and still stuck in traditional sales, the company faced a hit. E-commerce being better accessible and far more convenient for individuals led to Tupperware's losses in market shares. The company additionally faced growing competition from more innovative, eco-friendly, and affordable alternatives. Tupperware was no longer appealing to play the cards right and on time.

But it wasn't just that the financial management and the COVID-19 pandemic intensified these money troubles. A disruption of in-person sales majorly impacted the company due to its heavy reliance on in-person sales meetings and parties, leading to a decline in sales as the company couldn't adapt to the changing market and digital transition. In addition, the challenges were aggravated by disruptions in manufacturing, rising transportation costs, and digital infrastructure issues caused by the pandemic. With declining revenues, profit margins shrinking, and debt piled up, there were too many setbacks.


Tupperware's business model heavily relied on a direct sales approach through independent consultants, but this model was ineffective. These independent consultants sell products through in-person demonstrations and parties, and the company stays solely dependent on them. The business model showcased multiple weaknesses, including competition from online retailers who offered cheaper prices and a fast & more convenient form of buying. Their model provided limited scalability, only depending on a direct approach and solely relying on these independent consultants. In a fiercely competitive job market, depending entirely on independent consultants would have posed a significant challenge.




The main causative of Tupperware's bankruptcy was its very own limits to growth. They played it "safe". An inability to adapt to changes in the market and its' slow responses to competition led to its downfall (Tupperware announces bankruptcy: How Tupperware met its end!, 2024). For anything to progress, it needs to be able to adapt. Tupperware was adapting to these changing conditions, proving that only the "fittest" can survive. When there were hundreds of stainless steel container brands, Tupperware struggled to adapt to the challenges posed by those competitors; hence, its success was once remarkable.

Although the company ultimately did not survive the competitive market, it continues to hold a special place in the hearts of many Indians. Shopping for it, packing school and office lunches in it — it's somewhat bittersweet, perhaps. A name that will forever be iconic, etched in millions of hearts, has succumbed to bankruptcy.


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