The Renowned Tupperware is Filing Bankruptcy. What Can Be Learned?

Tupperware, a 78-year-old American company known for its kitchenware, particularly its airtight plastic containers. In Malaysia, it is especially a popular choice among mothers. The brand now has lost its momentum, and the recent news might come as a surprise to its loyal customers.

So what makes it go so badly that it has to file bankruptcy?

Flashback: How Did It Succeed Before?

Tupperware has consistently proved its exceptional quality and durability over the years. This has made its brand image stronger over the years.

High-quality products

Tupperware products are considered premium because of their great quality and long-lasting durability. These containers are built to last for years, offering great value over time. Customers appreciate this focus on quality, which has helped build strong loyalty to the brand.

Loyal customer base

Tupperware’s commitment to high product quality has created a base of loyal, satisfied customers. This positive experience has fostered trust and continued loyalty, as proven by the growing customer base over the years.

Word-of-mouth marketing

Tupperware has built a strong reputation for high-quality products, which has led to many satisfied customers. These loyal customers often become informal brand ambassadors, passing down the love for Tupperware to the next generation. As a result, many people today know the brand through their moms, who have used and trusted the products for years.

What are the lessons that can be learned?

Despite Tupperware’s strong brand image and history of past successes, Tupperware has lost relevance due to its failure to adapt to today’s consumer preferences. Other than that, they have failed to compete with less expensive alternatives, increased competition from lower-priced brands, and rising economic pressures. Internal challenges also have further exacerbated its difficulties, resulting in a recent bankruptcy filing.

1) Be adaptable to changing market demands.

The brand struggled to maintain relevance in a rapidly evolving market. According to The Harris Poll, they have been facing challenges in attracting younger consumers. The product is also difficult to reach due to its approach of selling through independent salespeople. Even though it has made efforts on e-commerce, it is not sufficient for them to regain the market share. This underscores the importance for companies to continually innovate and stay attuned to today’s consumer preferences, especially as competition intensifies and new trends rise.

2) It is important to reinvent as needed.

With its major declining sales and market relevance, it can be a sign for them to reinvent their product offerings. The consumer today values eco-friendly products; Tupperware has not fully aligned with those expectations. While Tupperware durable plastic containers help reduce single-use plastics, it has an issue that it may not be able to recycle properly since not all recycling centers accept it. This shows that brands need to evolve with the times to retain customer interest.

3) Don’t rely over previous successes.

The brand is highly popular among the older generations, which are the Baby Boomers, Silent Generation and Greatest Generation, according to QuestBrand data. Although their target audience is primarily women, often homemakers, they seem losing relevance and disconnected from younger consumers.

This is evident from their lower familiarity scores compared to older consumers. While it can show that they rely on past generations, they have made significant efforts in connecting with current generations. This includes increasing social media presence online and influencer marketing to reach younger audiences.

Conclusions

Tupperware’s recent bankruptcy is a clear sign of how fast consumer preferences and markets can change. Despite its long history and loyal customers, the company struggled to meet modern demands. To survive, Tupperware needs to focus on innovation and sustainability to win back younger consumers.

In the end, even well-established brands must stay alert and adapt to new trends to succeed today. According to Tupperware statements by PRNewswire, they have been under a new management team since last year. They planned to make improvements and keep working on these changes to grow.