Another well-known brand has filed for bankruptcy, with annual revenue exceeding 10 billion!

In today's ever-changing market environment, e-commerce platforms such as Amazon, Walmart, Temu, etc. continue to compete for customers. In addition, consumer shopping habits are constantly changing, and various new brands are emerging... All these situations have caused many traditional brands that were once prosperous to face more difficulties and even decline.

Recently, Tupperware Brands Corporation, a well-known American brand called "the tears of the times" by netizens, officially filed for bankruptcy protection in a U.S. court, announcing the end of its nearly eighty years of glorious history.

From annual sales of 10 billion to heavy debt, Tupperware "collapsed"

Last week, Tupperware, a US-based home furnishings company, issued a statement saying it had filed for bankruptcy protection with a local court .

Relevant documents show that the company's assets are estimated to be between $500 million and $1 billion, while its estimated liabilities are as high as $1 billion to $10 billion .

In this regard, its CEO admitted in a press release that the drastic fluctuations in the global macroeconomic environment in the past few years have had a profound and significant impact on the company's financial situation . In recent years, they have explored various strategic options and finally determined that this decision is the best way forward.

However, Tupperware said in a separate statement that it will seek court approval to facilitate the business sale process and will continue to operate and pay employees and suppliers during the bankruptcy process.

On the same day, the news quickly gained momentum online, and the related topic immediately topped the Weibo hot search list, becoming the focus of attention from all walks of life . In the comment section, many netizens said they were "shocked" and "incomprehensible", and some netizens called it "the tears of the times".

Looking back at Tupperware's past 78 years of history, its impending bankruptcy is regrettable.

According to public information, Tupperware is one of the world's largest manufacturers of plastic fresh-keeping containers. It was founded by American chemist Earl Tupper in 1946 and is headquartered in the United States. Its main products include fresh-keeping boxes, water cups, tableware, kitchen utensils, etc.

In the early days of its establishment, Earl Tepper did not find a suitable application for the food storage box he invented. It was not until the salesman Brownie Wise joined that he was able to open up the market.

In 1949, when refrigerators were not yet popular, Brownie Wise began selling Tupperware containers as an agent to address the pain point of housewives who had difficulty extending the shelf life of food.

In 1952, Tupperware's sales soared and it established a sales network of tens of thousands of people. At that time, foreign media reported that "90% of American households own at least one Tupperware product", which shows that it was very well-known.

In 1995, it established Tupperware (China) Co., Ltd. in Guangzhou and officially opened for business in 1996. According to statistics, Tupperware has more than 70 branches around the world, and has factories in the United States, France, Australia, Japan, South Korea, China and other countries.

In 2002, Tupperware determined its development strategy with "franchising" as its main channel and "membership system" as its feature. It was widely rolled out in the Chinese market and was welcomed by many Chinese people. Many netizens called it the "pioneer of Internet celebrities" in the water cup industry.

In 2004, Tupperware occupied a certain market share in my country with its products with good sealing and high quality. In 2019, it achieved a revenue of US$1.798 billion (approximately RMB 12.7 billion).

However, the good times did not last long. Since the third quarter of 2021, Tupperware's sales have declined for six consecutive quarters. Today, it is heavily in debt and once hovered on the brink of bankruptcy.

Why did the former "pioneer" of the Internet celebrity cup end up in its current situation?

In fact, Tupperware's financial situation was in crisis a few years ago.

In 2021, its revenue was about $1.6 billion, a decrease of about $1 billion from its peak. In the third quarter of fiscal year 2023, its total revenue was $260 million, and after deducting taxes, its profit was negative $53.7 million, and its revenue continued to decline year-on-year. In April this year, the company warned that due to declining product sales and increasing debt, the company was likely to fall into trouble and was in a "severe financial situation . "

In addition, due to poor operating conditions in recent years, Tupperware has withdrawn from several markets, including the Netherlands, Israel, Greece and New Zealand.

In June this year , Tupperware announced the permanent closure of its factory in South Carolina, USA, and laid off nearly 150 employees.

This month, Tupperware officially announced that it had filed for bankruptcy protection.

The reason why a generation of heroes fell from power is inseparable from the huge debt, but it is also closely related to factors such as competition from other e-commerce platforms, reduced product demand and inflation.

Specifically, the company wrote in its bankruptcy filing: " What was once a strength , the direct sales model, has now become a weakness . "

It is understood that Tupperware opened a store on Amazon in June 2022, and began selling its products on Target in October of the same year. Data shows that until 2023, nearly 90% of Tupperware's sales will come from direct sales channels.

However, with the e-commerce platforms booming, many companies have already discovered business opportunities and moved online. In terms of marketing models, it can be said that Tupperware has not kept up with the times and is obviously a little behind.

Moreover, with the rapid development of major e-commerce platforms, a series of similar products began to come out, and their prices were lower and the types were more diverse. This phenomenon not only broke Tupperware's original price system, but also took the lead in meeting the diverse needs of consumers.

In terms of competition with e-commerce platforms, Tupperware has suffered a considerable impact, just like many well-known American retailers such as Big Lots , 99 Cents Only, and Dollar Tree that collapsed earlier this year.

In addition, in the era when refrigerators were not yet popular, people had a high demand for iconic food storage and preservation containers, which could be said to be a "must-have" for most families at that time. However, with the development of technology, not only are refrigerators a must-have in every household, but various preservation technologies have also become more and more sophisticated, resulting in a decline in the sales of such containers.

Furthermore, the Federal Reserve's interest rate hikes in the past two years have led to an intensification of the global corporate bankruptcies and also triggered problems such as inflation. Under this trend, consumers' economic pressure has increased and their shopping enthusiasm has weakened, so they have gradually given up buying high-priced products and turned their shopping intentions to lower-priced similar products.

Numerous obstacles caused Tupperware to gradually disappear from the world. This phenomenon is undoubtedly a warning to other companies. In the current highly competitive market environment, major companies need to adjust their operating strategies in a timely manner.

One more thing that must be said is that Tupperware has only filed for bankruptcy protection, which means that it can still continue to operate its business and strive for strategic transformation or turn losses into profits to avoid bankruptcy. Yien.com will continue to pay attention to the company's future development trends.