Tupperware were the inventors of the plastic kitchen box. Their sales shows, the Tupperware parties, were an American institution. Today the company is facing bankruptcy.
Tupperware Brands is preparing to file for bankruptcy in the next few days, Bloomberg reports. Tupperware became known through two different innovations. In 1946, founder Earl Tupper introduced a flexible, airtight closure for plastic containers. The safe and robust containers made of polyethylene were a revolution at the time. Plastics were relatively new, and such an elastic material was unknown.
Then there was the distribution. Brownie Wise made Tupperware a company of global renown. She is considered one of the greatest sales talents of the post-war period and invented the Tupperware parties – an American institution. Sales were not made in stores, but by women who worked on a commission basis. According to Bloomberg, the company still works with more than 300,000 independent sellers today, although there are now stores and online sales.
Tupperware has lost the market
For years, the company has been struggling with falling demand and the resulting financial problems. According to information from Bloomberg, bankruptcy is imminent because the company cannot meet its payment obligations. Tupperware is said to have accumulated debts of over 700 million dollars. Last year, an agreement was reached with creditors. In June, it was announced that the last remaining factory in the USA would be closed. But the company’s situation continued to deteriorate.
The spirit of the 1950s
Time seems to have passed Tupperware by. Plastic containers with a secure seal can now be found in every supermarket, usually much cheaper than the original. Tupperware products are still considered to be high quality and durable. But they come at a price. A Tupperware ice cube tray costs 22.50 euros in Germany, and a universal container with 325 milliliters costs 12.90 euros. Tupperware also remained connected to the post-war milieu of the US housewife from the suburbs. A huge range was intended to help people to handle increasingly specific tasks in the kitchen. In an age of single households, working women, convenience food and delivery services, however, this concept no longer works.
The same applies to the distribution channel via amateur saleswomen. In the 1950s, housewives could earn a little extra money this way. The Tupperware parties were harmless fun in suburban life. But who could go to a sales party on a weekday afternoon these days?
Source: Stern
