Return to Uzone News Portal
Uzone.id — For many people in many countries, Tupperware will be at the top of people’s minds for food containers. It’s the 20th-century icon for household storage solutions, known for its door-to-door sales marketing. Unfortunately, the brand famous for its quality faced challenges that ultimately led to a decline.
Earlier this year, the brand officially filed for bankruptcy after years of declining sales, increasing competition, and an evolving consumer market. While the 77-year-old company’s future remains uncertain, its downfall offers several crucial lessons for investors in-stock selection.
What Went Wrong
Tupperware was famous for pioneering the direct-sales business model. Long before we had e-commerce, Tupperware had one of the earliest forms of social commerce through its strong community, the “Tupperware Party,” where women would gather and sell Tupperware to their friends.
However, this strength later became a boomerang for the brand as it couldn’t keep up with digital business models. The iconic brand started facing a sales decline in 2023 and eventually filed for bankruptcy a year later.
Some of the main reasons for its bankruptcy were that it struggled to keep pace with the rapid changes in consumer behavior, market trends, and technological advancements. Hence, startups need to learn from Tupperware.
Embrace Digital Transformation
The importance of embracing digital transformation cannot be overstated. Nowadays, people tend to choose something more convenient, such as shopping from e-commerce, rather than buying stuff offline.
Tupperware was very slow to adapt to the digital sales channel and e-commerce, significantly contributing to its downfall.
A company or entrepreneur must be agile to adapt, especially to a digital transformation. We need to prioritize integrating technology into all business areas because it will be hard to catch up with other companies once our attempt comes too late.
Therefore, in this era, companies need to level up their digital marketing strategy, increase their reach and engagement through social media, and, most importantly, fulfill customer needs through e-commerce platforms.
Innovate and Adapt to Market Trends
Consumer needs change from time to time. For example, Tupperware’s bright plastic-look design was once a trend and loved by many; however, today, many consumers prefer a minimalist, sleek, simple-looking design.
Unfortunately, once competitors started to launch other products, Tupperware was stuck in its glory days and failed to adapt its product line to fulfill the market trends.
Companies that don’t innovate and embrace new consumer needs will be left behind. Thus, startups need to make innovation a core strategic focus. Nowadays, the demand for sustainable products is growing, and we can utilize it by making eco-friendly products. It’s become crucial for companies to stay relevant and competitive to stay ahead of competitors.
Effective Pricing Strategy
Due to its premium price, Tupperware was known as a long-lasting investment. However, this positioning became a challenge as many new products flooded the market with more affordable prices.
Due to inflation and economic uncertainty, many consumers are more price-sensitive. They prefer to buy a cheaper product even though it may last shorter than the more expensive product.
Additionally, the rise of discounts given by online marketplaces that offer similar products at much lower prices made it difficult for Tupperware to justify its higher price.
Companies need to balance strong brand positioning and effective pricing strategies. Businesses must articulate a clear value proposition that resonates with consumers, especially in a market saturated with alternatives.
Stable Leadership
After all, those strategies wouldn’t work if companies didn’t have a stable leadership structure; frequent leadership changes lead to internal chaos and the inability to execute company strategy. High turnover is a bad sign for the company.
Tupperware’s bankruptcy serves as a reminder of the importance of agility, innovation, and strategic foresight in today’s market. No company is immune to failure, and by learning from their mistakes, companies can develop strategies to proactively adapt to change before it is too late.
Writer: Adinda Ayu Sasqia Putri
