E-commerce and coronavirus changing consumer appetite for Tupperware
One of the key trends, which is “nothing new” but increasingly an issue, is the commoditisation of bowls and containers. “Now the competition… have very good quality and that has driven the price points and the consumer perception of how much they should pay.” In addition, the competition is intensifying, with not only other direct sellers, but also many retail departments, joining the fray.
The coronavirus pandemic has altered the business landscape, the specialist explained, and “the fact that Tupperware plays in the direct selling industry really alters the behaviour of the sales trend”. First, many people latched on to the opportunity to become a salesperson and supplement their income, using online platforms to replicate “Tupperware parties”.
Meanwhile, the changes to consumer behaviour sparked by stockpiling have worked in Tupperware’s favour: “in these industrialised markets or countries, people were afraid that there might be shortages on food. They are wasting less. They are saving more food.”
Tupperware’s turnaround strategy was also examined, with the specialist highlighting three issues that are imperative for the company to address. These included improving the product offering and becoming more consumer-focused, in the light of cheaper alternatives and more people shopping online.
The discussion also covered the differences in sales models with Tupperware’s main competitors, Natura and Avon, performance across various geographies, and if there could be a potential buyer within the multi-level marketing sphere.
To access all the human insights from Third Bridge Forum’s Tupperware Brands – Near-term Challenges & Turnaround Potential Interview, click here to view the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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