![[Original size] quela.png](https://static.wixstatic.com/media/1e057a_09a9f50427b14af99cc0ccbd405918c0~mv2.png/v1/fill/w_184,h_60,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/%5BOriginal%20size%5D%20quela.png)
CASE STUDY by Khoa Huynh
A Great Product Undone by the Lack of a Strong Digital Strategy
Why Any Business Could Face Bankruptcy Like Tupperware—The Crucial Factor That Led to Their Downfall
The Rise of Tupperware
In the 1940s, people faced a recurring issue – food spoilage. After returning from vacations or long days out, they would find their leftovers gone bad, leading to frustration. Earl Tupper, an inventive mind, saw an opportunity in the plastic waste product, polyethylene, which was primarily used in electric wiring. Tupper experimented with this material, creating the world’s first flexible and durable plastic containers, thereby revolutionizing the way people stored food.
With the advent of Tupperware, a new era of food preservation began. The brand quickly became a household name, known for its simplicity and functionality. Over the years, Tupperware grew into a billion-dollar empire, generating millions in revenue and becoming one of the top kitchenware brands in the world.
What Went Wrong?
Despite its early success, Tupperware made a fatal mistake that led to its eventual bankruptcy: failure to innovate and adapt to the changing market. Initially, Tupperware's sales were driven by their unique party-based selling model, where suburban women hosted social gatherings to sell the products. While this model was revolutionary in the 1950s, it quickly became outdated with the advent of the internet and changing consumer behavior.
The company clung to its traditional sales methods, failing to build an online presence or distribute its products in major retail stores like Walmart or Target. Meanwhile, competitors, including cheaper knock-off brands, leveraged e-commerce platforms, quickly gaining market share and leaving Tupperware behind. By the time Tupperware tried to shift its business online, it was too late – competitors had already solidified their positions.
Lessons Learnt
The key takeaway from Tupperware's downfall is that sticking too rigidly to tradition can be detrimental to long-term business success. While it is important to uphold the values and quality that define a brand, businesses must also stay open to innovation and change. Tupperware failed to recognize the growing importance of digital platforms, and this oversight ultimately cost them their business.
Adapting for the Future
In today's fast-paced world, businesses need to be proactive in expanding their selling models to online platforms. Building a strong online identity is crucial to staying ahead of competitors. Companies that fail to innovate and adapt, like Tupperware, risk being left behind.
If you're looking to grow your business and avoid the pitfalls of outdated practices, it’s essential to seek expert consultation. Identifying the right strategies and building a robust online presence can help ensure your brand stays relevant and competitive in the ever-changing market landscape.
