Tupperware, the iconic maker of food-storage goods, said it could go out of business.
Founded by Earl Tupper in 1946, Tupperware was one of the first direct selling companies. Their sales channel innovation was independent sellers holding "Tupperware" parties, where primarily women hosts sold the product to their friends and family.
The picture below (click to enlarge) is from the company's website. It shows the title character from Amazon's popular series The Marvelous Mrs. Maisel hosting a Tupperware party (the show takes place in the 1950s).
Nice Hats!
The direct selling industry is quite large. According to the latest statistics from The Direct Selling Association, 7.3 million Americans earn money as independent direct sellers.
Almost all direct sellers do it part-time (6.8 million), with most looking to direct selling as a flexible way to supplement their income.
But Tupperware has run into a couple of problems.
First, thanks to the gig economy, there are many more flexible, independent work options for people looking to supplement their income. This has resulted in fewer sellers choosing to work for Tupperware.
Second, organizing parties and in-person selling is much harder due to today's time-challenged adults. Because of this, much of direct selling has moved online (and called social selling).
But Tupperware has not effectively made the transition to online sales.
This is partly due to Tupperware being viewed as an old, stodgy brand by younger consumers. This hurts their sales and their ability to attract younger sellers.
The bottom line is Tupperware's sales are falling, their stock price is falling faster, and, adding to their troubles, they have a large amount of debt.
Despite Tupperware's troubles, the direct selling industry continues to do reasonably well overall. And we expect it to continue to attract millions of Americans looking for a flexible way to supplement their income.
