Kenapa TUPPERWARE Gagal?

Summary

The video script discusses the surprising financial struggles of Tupperware, a once-dominant brand, despite its nearly Rp20 Trillion in revenue in 2022. It delves into the company's outdated business model, lack of innovation, and failure to adapt to changing consumer behaviors, particularly among younger demographics. The script highlights Tupperware's reliance on direct sales and its inability to leverage online opportunities, contrasting it with competitors like Lock & Lock that have successfully captured new markets. The analysis serves as a cautionary tale for established brands, emphasizing the importance of continuous adaptation and innovation to maintain relevance and financial health.

Takeaways

• 📉 Tupperware's stock has plummeted by 95% over the last five years, indicating a severe financial decline.
• 💹 Despite a revenue of nearly Rp20 Trillion in 2022, Tupperware is facing losses due to a higher amount of liabilities compared to assets.
• 💔 The company's cash flow in 2022 showed a negative trend with over a hundred million dollars in losses.
• 👵 Tupperware's brand is deeply rooted among mothers and housewives, but it has failed to maintain its market dominance.
• 🏠 The company was established in 1946 and became famous for its durable and reusable food storage products.
• 📉 Tupperware's financial struggles are evident in its inability to cover operational costs, despite high gross margins of 60-70%.
• 🛑 The company has not reported its annual financial statements, leading to a potential delisting of its stock.
• 🔄 Tupperware's business model, which heavily relies on direct sales, has not adapted to market changes and new consumer behaviors.
• 🌐 The rise of online shopping and the preference of younger consumers for convenience have left Tupperware behind in the digital era.
• 📊 Tupperware's market share has significantly decreased, with competitors like Newell Brands holding a much larger share.
• 🔄 The company's lack of innovation and failure to adjust its business model to attract new demographics has led to stagnation and financial distress.

Q & A

Why might a company like Tupperware be facing bankruptcy?

Tupperware is facing bankruptcy due to a significant drop in their stock value, which has decreased by 95% over the last five years, coupled with a negative cash flow and more liabilities than assets.

What was the approximate revenue of Tupperware in 2022?

Tupperware's revenue in 2022 was nearly Rp20 Trillion.

What is the main issue with Tupperware's financial situation despite having a high revenue?

The main issue is that Tupperware's profits are not increasing, and they are unable to cover operational costs, even though they have a high gross margin of around 60-70%.

Why did Tupperware's stock price drop significantly over the last five years?

The stock price dropped due to stagnation in revenue growth, lack of innovation, and concerns about the company's ability to sustain operations and compete in the market.

What is the historical significance of Tupperware's business model?

Tupperware's direct sales model was revolutionary in the 1950s, allowing the company to expand without incurring significant marketing costs and leveraging personal relationships for word-of-mouth marketing.

How has the rise of competitors and changing consumer behavior affected Tupperware's market share?

The rise of competitors and changing consumer behavior has led to a decrease in Tupperware's market share to just 5.5%, indicating a significant loss of market dominance.

What demographic changes have impacted Tupperware's traditional customer base?

Demographic changes include an increase in the number of women in professional roles and a shift towards younger generations, such as millennials and Gen Z, who are more active on social media and prefer online shopping.

How has Tupperware's late adaptation to online sales impacted its business?

Tupperware's late adaptation to online sales has led to stagnation in sales, a decrease in investor confidence, and an inability to cover operational costs, contributing to the risk of bankruptcy.

What is the significance of Tupperware's lack of innovation in their product offerings?

Lack of innovation in Tupperware's products has made it difficult for them to attract new customers and retain their competitive edge in the market, especially with the rise of environmentally friendly products.

How has the direct sales model, which was once successful for Tupperware, become a challenge in the current market?

The direct sales model, while once successful, has become a challenge due to the rise of online shopping and the need for a more diverse and adaptable approach to reach new audiences, especially younger generations.

What lessons can be learned from Tupperware's situation for other businesses?

Businesses should learn the importance of continuous innovation, adapting to changing consumer behavior, and leveraging digital platforms to reach new audiences and maintain a competitive edge.

Outlines

00:00

📉 Tupperware's Financial Struggles and Brand Legacy

The script discusses the surprising financial decline of Tupperware, a once-iconic brand, with its stock value plummeting by 95% over the last five years. Despite a significant revenue of nearly Rp20 Trillion in 2022, the company faced a net loss of millions of dollars and had more liabilities than assets, leading to a cash flow of negative hundreds of millions of dollars. The speaker questions why a brand so deeply rooted in consumer households is struggling, attributing the decline to a lack of innovation in social media and a failure to adapt to changing market conditions. The company's history is briefly touched upon, highlighting its 80 years of operation and its initial success with durable, reusable food storage products. The script also mentions rumors of potential mass layoffs and the company's inability to report mandatory annual financial statements, which has led to its stocks being nearly delisted.

05:02

🔄 The Challenges of Tupperware's Direct Sales Model and Market Adaptation

This paragraph delves into the reasons behind the direct sales model's previous success and its current inadequacy for Tupperware. The model, which relies on personal relationships and word of mouth, was revolutionary in the 1950s, allowing Tupperware to dominate the market with its high-quality products without significant advertising costs. However, the script points out that Tupperware's failure to adapt to the digital era and the changing consumer behaviors, especially among younger generations, has led to stagnation in sales and a decrease in investor confidence. The company's lack of thought diversity and innovation is criticized, with its advertising efforts being less effective compared to the increasing social media advertising expenditure worldwide. The script contrasts Tupperware's struggles with the success of Lock & Lock, a younger brand that has managed to capture a younger audience and adapt to digital marketing strategies, resulting in a growing market share and revenue despite being a newer and smaller company.

Keywords

💡Bankruptcy

Bankruptcy refers to a legal status where an individual or business is unable to repay their outstanding debts. In the context of the video, Tupperware is facing the threat of bankruptcy due to a significant drop in their stock value and an inability to cover operational costs, despite having high revenue. The term is used to illustrate the financial peril the company is in.

💡Stock Value

Stock value represents the market price of a single share of a company's stock. The video discusses Tupperware's stock value plummeting by 95% over the last five years, which is a clear indicator of the company's declining financial health and investor confidence.

💡Revenue

Revenue is the total income generated from the sale of goods or services. The script mentions Tupperware's revenue reaching nearly Rp20 Trillion in 2022. However, it emphasizes that high revenue does not always reflect a company's financial health, as Tupperware is still facing financial difficulties.

💡Profit Margin

Profit margin is the percentage of revenue that a company retains as profit after accounting for all expenses. The video highlights Tupperware's gross margin of around 60-70%, indicating that for every product sold, a significant portion of the revenue is profit, yet the company still struggles financially.

💡Liabilities

Liabilities are obligations or debts that an entity owes to others. The script points out that Tupperware has more liabilities than assets, indicating a negative net worth and a potential inability to pay off its debts.

💡Cash Flow

Cash flow refers to the net amount of cash moving in and out of a business. The video script describes Tupperware's cash flow as being negative, with more than a hundred million dollars flowing out, which is a critical sign of financial distress.

💡Business Model

A business model outlines how a company plans to make money. The script discusses Tupperware's reliance on a direct sales business model, which was revolutionary in the 1950s but has not adapted well to modern market conditions, contributing to the company's financial struggles.

💡Market Share

Market share is the portion of the total market for a particular product or service that a company controls. The video notes that Tupperware's market share has dwindled to 5.5%, far from market domination, and is being outpaced by competitors like Newell Brands.

💡Innovation

Innovation refers to the introduction of new ideas or methods. The script criticizes Tupperware for lacking innovation in their social media presence and product offerings, which has led to a failure to attract new customers and maintain relevance in the market.

💡Customer Behavior

Customer behavior is the way in which consumers act in the marketplace. The video mentions that Tupperware has failed to adapt to changing customer behavior, particularly among younger generations who prefer online shopping and have different expectations from brands.

💡Adaptation

Adaptation is the process of adjusting to new conditions or environments. The video's main theme is the importance of adaptation for businesses to survive. Tupperware's failure to adapt its business model and marketing strategies to the digital age and evolving consumer preferences is highlighted as a key reason for its decline.

Highlights

Tupperware's stock has plummeted by 95% in the last five years, leading to bankruptcy concerns.

Investors who put in 100 million five years ago now have less than 5 million remaining.

Despite nearly 20 trillion in revenue in 2022, Tupperware's profits are in the red by tens of millions of dollars.

Tupperware's liabilities exceed its assets, indicating a financial imbalance.

In 2022, Tupperware's cash flow showed a deficit of over 100 million dollars.

Tupperware's brand is deeply ingrained among mothers, yet it's losing its competitive edge.

Tupperware's business model, relying on direct sales, may be outdated in the face of new competitors.

The company has a history of strong product quality but lacks innovation in the digital age.

Tupperware's market share has significantly decreased, now only holding 5.5%.

New competitors, like Newell Brands, have captured a larger market share, leaving Tupperware behind.

Demographic changes and the rise of e-commerce have impacted Tupperware's traditional sales model.

Tupperware's lack of online presence and adaptation to social media has led to stagnation.

Consumers, especially younger generations, prefer online shopping, which Tupperware has not embraced.

Tupperware's direct sales model, once revolutionary, now struggles to attract new audiences.

Lock & Lock successfully captured a younger market that Tupperware failed to reach.

Tupperware's financial struggles are evident in their inability to report mandatory annual financial statements.

The company's high operational costs, despite large revenue, are unsustainable.

Tupperware's lack of innovation and failure to raise sales make it difficult to justify their expenses.

The stock price drop indicates a lack of investor confidence in Tupperware's long-term viability.

Tupperware lacks a competitive moat to protect them from competitors with smaller budgets.

The company needs to adapt its strategy and secure new funding to survive in the long term.

The key lesson from Tupperware's case is the importance of continuous adaptation and avoiding complacency.

Transcripts

Kenapa perusahaan kayak Tupperware bisa terancam bangkrut?

Saham mereka tuh udah turun 95% selama 5 tahun terakhir.

Itu tuh GILA.

Kalo kalian invest 100 juta 5 tahun lalu,

sekarang cuma sisa kurang dari 5 juta.

Nah anehnya,

pendapatan mereka tuh sampe hampir Rp20 Triliun.

Itu di 2022.

Tapi gini, pendapatan itu nggak cerita semuanya.

Untung mereka minus belasan juta dolar.

Kalo dibedah lagi aset liabilitas mereka,

mereka lebih banyak liabilitas.

Lebih banyak hutang dibanding asetnya.

Dan yang parah di tahun 2022,

kalian liat chart cashflow ini.

Uang mereka minus 100 juta-an dolar lebih.

Pertanyaannya, kenapa?

Padahal brand ini tuh kayak melekat banget di kaum ibu-ibu.

Rasanya kayak udah brand no. 1, kok bisa kalah?

Menurut gw sih ada satu alasan yang aling fatal,

karena mereka gak subscribes—

Oke bercanda.

Sebenernya banyak ya.

Karena sombong, social media-nya telat, gak inovasi.

Kita ke Chapter 1 The History of Tupperware.

Mereka udah dibangun dari 1946.

Hampir 80 tahun tuh totalnya.

Dan sebenernya simpel, mereka tuh terkenal sama food storage.

Dari dulu produknya tuh bagus, durable,

reusable, gampang buat di-storage—di-stack stack gitu.

Sampe emak-emak tuh marah kalo anaknya ngilangin tupperware di sekolahan.

Nah sekarang udah sampe 100 negara.

Retail stores, direct sales.

Tapi kenapa setelah 77 tahun ini mereka terancam bangkrut?

Rumornya sampe mau PHK massal gila-gilaan.

Ini pelajaran buat kita episode #BedahBisnis.

Perusahaan yang giant sekarang udah kelihatan bakal runtuh-runtuh.

Intinya kalo secara finansial,

liat bottom line-nya, profit-nya—itu tuh gak ngangkat.

Mereka terancam gak bisa bayar operasional.

Padahal kalo diliat-liat lagi ya,

produk mereka per satu itu—kan kita hitungannya gross margin ya—

mereka tuh sekitar 60-70% gross margin.

Itu tuh bagus.

Analoginya produk yang dijual 100 ribu modalnya cuma 30-40 ribu.

Itu all in.

Tapi ada pepatahnya.

Perusahaan besar yang gak adaptasi, mereka bakal stagnan.

Dan selama 5 tahun terakhir pendapatannya itu stagnan.

Yang pelan-pelan bikin profit-nya tergerus sampe gak bisa bayar operasional.

Sekarang tuh di tahap saham mereka di bursa—

itu hampir di-delisting, hampir di-take out.

Kenapa?

Soalnya mereka gak lapor laporan tahunan keuangan yang wajib.

Mereka sampe gak lapor.

Kalo kata CEO-nya, Miguel Fernandez,

mereka tetap berusaha untuk fund raise atau cari duit lagi

untuk bisa bikin perusahaannya survive.

Cuma kan sebenarnya ini bahan belajar.

Belum tentu tambahan duit bisa bantu mereka survive jangka panjang.

Kalo menurut gw salah satu core problem-nya itu di chapter 2.

Business Model Tupperware.

Selama beberapa dekade Tupperware kan produknya bagus.

Mereka tuh bergantung sama business model direct sales.

Simpelnya gini, ada namanya independent contractor

atau kalo bahasa mereka Tupperware Consultants.

Jadi mereka tuh beli semua produknya dari Tupperware dengan harga diskon,

terus mereka yang jualin.

Ada komisi dan lain-lain, itung-itungannya lah.

Tapi ya intinya itu, direct sales.

Dan di tahun 1950-an itu tuh sebenarnya revolusioner banget.

Karena produknya bagus,

gak usah keluarin biaya gede untuk di semua tempat.

Yaudah jual aja ke direct sales

atau kalo bahasa kita reseller mungkin ya.

Terus mereka yang jualan.

Kalo abis baru beli lagi dari Tupperware.

Dan kita ga boleh sesimpel itu salahin strategi.

Karena by then itu tuh works dan revolusioner banget.

Itu ngurangin risiko dari sebuah perusahaan.

Dan bisa bikin mereka jebret tiba-tiba ada di semua tempat.

Nah tapi yang gak di-factor in,

pas mereka udah dominasi market

tiba-tiba sekarang kompetitor banyak muncul.

Dan gw agree.

Sebenarnya produk Tupperware itu bagus.

Sampe sekarang tuh masih bagus.

Cuma kalo business model-nya gak di-adjust dari kompetitor masuk,

mereka bisa terancam.

Dengan adanya kompetitor harus pelajari yang namanya market share.

Seberapa besar pie-nya.

Misalnya ada satu lingkaran gede nih, Tupperware berapa persen?

Sekarang itu cuma 5,5%.

Itu jauh dari market domination.

Kompetiror utama mereka, Newell Brands, itu pegang 40-an persen market share.

Ini sesuatu yang harus dipelajarin ya.

Kayak—kan mereka dibangun 70-an tahun lalu,

demografi utama mereka siapa aja?

Ibu-ibu, keluarga.

Nah sejak pandemi atau bahkan beberapa tahun sebelum pandemi,

behavior user—demografi utamanya itu berubah.

Harusnya kalo orang-orang yang lebih muda,

millenial, gen Z yang lebih aktif social media—

Dan mereka tuh gak berhasil adaptasi ke strategi itu.

Contohnya di era tahun 2000-an plus plus ya,

lebih banyak cewek yang aktif di dunia kerja sebagai profesional.

Dulu tuh gak.

Dulu tuh kenapa strategi itu works,

karena works untuk ibu-ibu rumah tangga

yang kebanyakan non-profesional.

Gara-gara behavior-nya lebih sedikit waktu,

makanya brand-brand masuk ke e-commerce.

Belajar sendiri—digital, save time.

Dan gw rasa Tupperware kalah banget di sana.

Soalnya udah ada riset-nya 42% konsumen itu jauh lebih suka belanja online.

Dan Tupperware is late.

Bikin sales mereka stagnan, confidence investor turun,

sampe gak bisa bayar operasional.

Kalo gak bisa ya berarti bangkrut, mau gimana?

Kalo kita ngomongin direct sales model yang dijalanin sama Tupperware,

itu bagus kalo kita udah merambat grass roots.

Orang-orang yang kenal di circle tertentu udah beli dari sana terus.

Tapi untuk audience baru—

milenial, gen Z, dan generasi sebelumnya yang gede di socia media—itu susah.

Apalagi banyak banget dari direct sales atau Tupperware Consultants ini

itu keliatan kurang aktif banget di online.

Di luar marketing—ini survei baru juga.

Fokus Tupperware kan yang gede-gede, family size.

Sekarang lebih banyak trend ke yang lebih kecil.

Kedua, lagi ada banyak trend yang single-serve.

Tempatnya sekali pake atau disposable.

Plus—baru masuk ke environmentally good products.

yang fokus ke environment.

Dan itu ga ke-reflect di produk-produk baru mereka.

Nah ini gw gak tau.

Karena sombong?

Apa udah terlanjur business model direct sales yang bikin susah pivot?

Kalo ada produk baru kan mereka harus jual lagi ke semuanya.

Simply saying,

di chapter 2 Tupperware lost it's edge.

Bukan kalah saing, tapi kalah keunggulan.

Chapter 3 Neglecting Online

Nah gw bedah lagi ya,

kenapa direct sales model ini works dulu?

Mereka sangat amat bergantung—

coba deh ya ngomong ke orang tua, ke siapapun,

"Brand packaging makanan tuh apa yang bagus?"

Semuanya bilang apa?

Mungkin semuanya bilang Tupperware.

Gw sendiri sampe sekarang mungkin bilang Tupperware.

Kenapa?

Soalnya itu udah menjalar banget, word of mouth.

Relationship antara circle-cirle, keluarga, dan lain-lain—

itu tuh masuk banget.

Dan strategi ini revolusioner.

Direct sales membuat personal relationship sama word of mouth

jadi jauh lebih kuat.

Dan siapa yang paling jago kayak gitu?

Keluarga, ibu-ibu—apalagi yang lagi arisan.

Kalo ngomong younger generation—milenial, gen Z—it's about convenience.

Seberapa mudah lu bisa liat dan beli produk itu.

Dan sebenernya ada surveinya.

Generasi baru yang yang tinggal di era online—

mereka punya brand loyalty lebih rendah.

Kadang convenience, produk specs atau bahkan price—

itu tuh bikin mereka lebih pilih produk lain, mereka siap selingkuh ke brand lain.

Bargaining power customer lebih tinggi.

Dan sebenernya ada risetnya juga.

Kalo dibedah secara culture organisasi Tupperware,

mereka .tuh lack yang namanya thought diversity

Semuanya udah yakin dengan satu jalan,

yaudah satu jalan itu terus.

Dan kalo secara organisasional itu gagal untuk membuat adaptasi atau diversitas,

produk-produknya juga kayak gitu.

Strategi marketingnya juga kayak gitu.

Intinya jangan sombong.

Simpel ya, ini statistik ya.

Soial media advertising—biaya yang dikeluarin seluruh marketing company, seluruh brand dunia—

itu dua kali lipat dari tahun 2020 ke 2024.

$89 miliar.

Dan Tupperware gak leverage itu.

Belum berhasil nge-leverage itu.

Bukan berarti mereka gak nge-ad sama sekali ya.

Tapi lack of diversity itu yang bikin ads mereka kurang plong.

Mungkin kal kita ngomong salah satu strateginya yang bisa works

untuk ngehidupin Tupperware kembali—

kita simpel aja, ini sekalian buat belajar.

Chapter 4 Lock & Lock.

Kalo menurut gw, especially di exposure Indonesia,

Lock & Lock itu salah satu yang berhasil gaet new market yang Tupperware ga bisa.

Simpel.

Menurut data, Lock & Lock berhasil dapet market yang Tupperware ga punya.

Yaitu younger audience—

yang gak bisa diremehin karena itu bakal jadi

majority audience selama beberapa tahun ke depan.

Kalo Lock & Lock tuh udah keliatan.

Online initiative mereka,

mungkin karena mereka lahirnya itu di ambang digital native.

Social media, promotion, advertising itu lancar banget.

And mereka popularitasnya jauh lebih tinggi di anak muda.

Salah satu contohnya lagi, ini beberapa produk Lock & Lock.

Mereka collab sama influencer-influencer,

make themselves relevant.

Bukan cuma dari produk yang udah lahir dari dulu terus berharap word of mouth.

Kalo dari embracing e-commerce dan strategi online,

mereka jauh lebih unggul daripada Tupperware.

Sebenarnya ya karena Lock & Lock ini dari Korea Selatan ya.

Jadi kayak—market Asia,

sama digital-nya itu lebih ada di DNA pas mereka lahir.

Ini kalo dibandingin revenue net income Lock & Lock sama Tupperware.

Pertama, Tupperware itu jauh lebih senior daripada Lock & Lock.

Lock & Lock itu sekitar 30 tahun lebih muda.

Dan ga salah, revenue Tupperware tetep lebih gede.

Cuma kalo kita ngeliat perusahaan, kita ga bisa liat dari size-nya doang.

Kita harus liat trend-nya.

Dimana Tupperware itu mengalami penurunan

dan Lock & Lock lagi mengalami kenaikan.

Tapi kita especially ngomong Asia ya,

dimana Tupperware itu kalah padahal total sales Tuperware 31% dari Asia.

Nah itu turun 12%.

Tapi yang harus di-factor in juga karena perusahaan lebih lama,

cost atau pengeluaran dari Tupperware—

termasuk dengan cash flow-nya, uang masuk-uang keluar—itu jauh lebih berat.

Omzet gede gak bisa kita puas-puasin.

Ujung-ujungnya biaya operasional yang sampe $800 juta.

Itu yang berat yang harus ditanggung sama mereka.

Menurut gw harusnya—asumsinya karena ini bakal naik terus,

jadi cost-nya lama-lama make sense.

Tapi ternyata enggak.

So, kita summary aja deh kenapa Tuppeware bisa kayak gini.

Chapter 5 Summary

Brand gede yang sukses monopoli beberapa tahun pertama

belum tentu yang bakal bertahan.

Brand yang paling bagus itu brand yang berhasil adaptasi

dan melakukan perubahan sesuai dengan behavior konsumen yang berubah.

Kedua walaupun sales Tupperware hampir Rp20 Triliun, dan melakukan perubahan sesuai dengan behavior konsumen yang berubah.

Kedua walaupun sales Tupperware hampir Rp20 Triliun,

kita harus liat pengeluarannya juga.

Dan kadang untuk perusahaan consumer good kayak gini

yang berhubungan dengan inventory, merketing—

kita harus liat cashflow-nya juga.

Uang keluar masuknya.

Tupperware bisa dibilang bloated.

Karena kurang inovasi, kurang berhasil naikin sales.

Susah untuk justifikasi pengeluarannya.

Ketiga, harga saham bisa turun sampe 96% selama 6 tahun terakhir.

Karena satu hal yang kita harus inget,

saham atau harga saham itu tuh forward looking machine.

Orang yang beli perusahaan bukan beli perusahaan di saat itu.

Tapi harapan bahwa perusahaannya bakal berkembang jangka panjang.

Ultimately, penurunan harga saham yang gila-gilaan itu—

karena orang udah gak percaya lagi Tupperware bisa bertahan berapa tahun ke depannya.

Di luar dari finansial ya.

Karena yang harus kita bahas itu competitive edge.

Seberapa kuat dia bersaing?

Bukan cuma sekarang, tapi 20 tahun ke depan.

Adain yang namanya moat.

Apa hal yang gede banget yang bikin kompetitor gak bisa salip mereka.

In reality Tupperware itu gak punya.

Mungkin mereka punya supply chain, economies of scale.

Tapi kalo produknya ga diinovasi,

gak solve problem ke end user dan ga bisa targetin end user yang baru—

sama aja boong.

Kompetitor lain dengan duit lebih kecil bakal bisa nyalip mereka.

Hopefully perusahaan segede ini—yang menurut gw legend secara branding—

bisa perbaikin finances-nya mereka, dapetin fund rasing baru

at least sampe punya napas untuk bertahan beberapa tahun ke depan. bisa perbaikin finances-nya mereka, dapetin fund rasing baru

at least sampe punya napas untuk bertahan beberapa tahun ke depan.

Sampe bisa ubah seluruh strategi mereka dan survive jangka panjang.

Dan itu sebenarnya yang bikin Tupperware gagal.

Pelajaran pentingnya di #BedahBisnis kali ini,

kalo udah gede jangan sombong.

Dan tetap harus selalu punya mindset adaptasi.

Kalo kalian gak setuju feel free comment di bawah.

I guess I'll see you guys on the next video, bye-bye!