Tupperware, the American brand known for its iconic plastic containers, has experienced a significant surge in popularity in India in recent years. The company's unique business model, which relies on a network of independent sales representatives, has helped it to establish a strong presence in the country. However, the company's future is uncertain despite its success in the region. Tupperware's shares have constantly plummeted and there are concerns that the brand's struggle could lead to its downfall.

Share Market Live

NSE

The company is currently facing rising debts and declining sales, prompting a warning that it could soon go bust if it fails to find new investments. According to a CNN report, in a regulatory filing on April 7, the 70-year-old brand said that there’s “substantial doubt about the company’s ability to continue as a going concern,” and that it’s working with financial advisers to find financing to stay afloat. Tupperware said that it won’t have enough cash to fund its operations if it doesn’t secure additional investment, the report added.

Following the disclosure by the company, shares of Tupperware plunged nearly 50 percent on April 10, marking the all-time low value of the stock.

ALSO READ |

IndusInd Bank signs $100 million loan agreement with JBIC to provide credit facilities to Japanese OEMs in India

Launched in 1946 in the United States, Tupperware was first introduced in India in 1996, but it wasn't until the past decade that the brand really took off. The company's products, which include plastic storage containers, kitchen gadgets, and other household items, have become increasingly popular among Indian consumers.

Despite its success in India, Tupperware is facing significant challenges that could lead to its downfall. The company's struggles in other markets, including the United States, have raised concerns about its long-term viability.

According to retail analyst Neil Saunders, a sharp decline in the number of sellers, a consumer pullback on home products, and a lack of appeal to younger consumers are among the issues affecting the brand. As Tupperware operates on an asset-light model, it has limited capacity to raise money, leaving it in a precarious financial position, the CNN report added.

ALSO READ |Majority Indians worried about economic issues from rising population, UNFPA report finds

Tupperware has attempted to reposition itself in recent years by introducing newer and trendier products to attract younger customers. Additionally, in 2022, the company collaborated with Target to sell its products in its stores. But, these efforts have failed to work so far, and Tupperware's shares are down 90 percent over the past year.

The company is reportedly exploring potential layoffs and reviewing its real estate portfolio for potential cost-saving efforts.

Tupperware has had a significant impact on the retail industry over the past seven decades, and its success has inspired other companies to explore new ways of reaching customers in this rapidly evolving market. However, the recent struggles of Tupperware highlight the importance of staying relevant in an ever-changing market.

(Edited by : Sudarsanan Mani)

First Published:Apr 19, 2023 4:45 PM IST