Tupperware boxed in by stiff competition, changing preferences in India

The company, which started in the US in the early 1940s and later set foot in India almost 30 years ago, has seen its sales slowly dwindle, and in FY23, its bottom line was in the red

Tupperware, the iconic maker of colourful, stackable plastic containers, last week filed for bankruptcy in a US court – a move that lifted the lid on its financial problems. The company’s misfortunes, however, aren’t confined to its home market: In India, where it landed with much fanfare almost 30 years ago, the story looks equally grim.

Once a ubiquitous fixture in urban Indian kitchens, Tupperware containers — symbols of a pre-e-commerce era — now seem like relics from a different age. According to data from Capitaline, Tupperware posted a healthy Rs 475.8 crore in sales in FY15, accompanied by a profit of Rs 76.6 crore. Fast forward to FY23, and the decline is stark: Sales nosedived to Rs 175.8 crore, while the company reported a net loss of Rs 7.8 crore.

“Tupperware isn’t doing well in India,” confided a source from the direct selling industry, a sentiment echoed by experts who believe the allure that once made Tupperware products aspirational has dulled amid shifting consumer preferences. Over the years, new players have emerged, offering similar products at far more competitive prices.

The company’s executives in India could not be reached for comment.

According to Dhanraj Bhagat, partner at Grant Thornton India LLP, consumers in recent years have shifted towards glass containers, driven by rising health and hygiene concerns. “It (Tupperware) has lost its once-robust dealer network. Competition has intensified, and brands now offer similar products at lower prices,” said Bhagat, explaining why it's hard for Tupperware to compete in India.

Harish Bijoor, business and brand strategy specialist, concurred, arguing Tupperware’s problem isn’t just its pricing but its entire product story, which has failed to evolve with the times. “The direct-selling format just doesn’t work in the age of e-commerce and direct-to-consumer brands,” Bijoor said. "In 2024, being a big, international brand isn’t enough to grab the attention of Indian consumers. Today, newer brands offering niftier, more affordable solutions have become the 'with it' brands.”

Tupperware’s legacy stretches back to its founding in 1942 by Earl Tupper. It became a household name in the US in the 1950s, as its products — marketed through Tupperware parties hosted by women — offered not just a handy kitchen accessory but a form of economic empowerment. In the following decades, the company expanded into Europe, and in 1996, it brought its direct-selling model to India, where it rapidly became a staple in urban households in the early 2000s.

In a press release announcing the US bankruptcy filing, Laurie Ann Goldman, Tupperware’s president and chief executive officer, acknowledged the company’s troubled trajectory. “Over the last several years, the company’s financial position has been severely impacted by the challenging macroeconomic environment. As a result, we explored numerous strategic options and determined this is the best path forward. This process is meant to provide us with essential flexibility as we pursue strategic alternatives to support our transformation into a digital-first, technology-led company better positioned to serve our stakeholders.”