Miguel Fernández, global CEO of Tupperware Brands, wants to expand the brand’s marketing channels beyond catalogs, closing alliances with supermarkets.
This is the first time that the company, which has been in the market for more than seven decades, has reached the displays of self-service chains, in addition to digital channels, its own stores and catalog sales.
The deployment of this strategy began in Target stores in the United States, and will be extended to other markets where the brand has a presence, such as Mexico and Chile.
“It’s going to take us, maybe, three years to get to where we want to be. We have already started with Target and in a couple of years we will be at Walmart (United States), which is the largest chain (in that country). But we are also going to be in many regional chains”, says the global CEO of Tupperware in an interview with Expansión .
The plan of the American company based in Florida is that sales in supermarkets generate a large volume, but Fernández does see in self-service stores an opportunity to connect with buyers who recognize the brand and who like it, but who do not They have a vendor nearby. And also for them to try the containers, notice the difference compared to their competition and then look for more sophisticated products in their catalogues.
Fernández details that the agreement with Target considers the sale of only 24 different products, which is around 10% of the 200 that the brand offers through its catalog, so as not to cannibalize catalog sales. “Once we hook them there (in the supermarket), we bring it to the sales force,” he adds.
In Mexico, the brand launched an activation strategy with Soriana three years ago. Through the chain’s loyalty program, consumers could redeem their points for some Tupperware containers at a lower price. However, the products were not for sale on the shelves.
“With these activations we have seen that the brand becomes relevant and the business of the sales force around the stores grows,” he explains without detailing the percentage of growth.
Soon Tupperware will launch a pilot project with Walmart de México y Centroamérica to bring the different products to its sales floor. “I want learning and for them to see how we can do business,” Fernández said.
This adjustment in the business is part of the omnichannel strategy that the manager seeks to promote in order to adapt the brand to new consumer trends. “It’s very challenging,” acknowledges Fernández, who describes the opening of new channels as “creating a company within another company.”
More stores in Mexico
The company will also strengthen its presence in Mexico, its second most important Latin American market after Brazil, with the opening of 50 units in the following three years, which will be added to the eight studios it currently has. The goal is to be in 40 cities in the country, including Guadalajara and Monterrey.
“We seek to have a relevant brand and present it to the new generations. There are buyers who do not have access to our distributors, but go to the malls and if they see our products in the store, then they can search for them online,” he says.
To achieve this growth, Tupperware will offer a scheme similar to franchises. It will consider its vendors first, then other private investors, who will put up the capital and decide on studio locations.
This is a model that the company has deployed in countries like China, where it has approximately 5,000 stores. However, direct catalog sales will continue to be the brand’s main sales channel.
“In Mexico, 90% of sales (of Tupperware) are through direct sales and will continue to do so. We believe that a large percentage of the population has access to our products through our network of vendors. The trick is to continue providing a good service, an excellent product, with more innovation and extend the active sales force”, concludes Fernández.
In Mexico, the direct sale of all types of products -including shoes- added revenues of 102,080 million pesos in 2021, an advance of 14% in its annual comparison. The share of household products was 19%, third after the Beauty (40%) and Nutrition (35%) categories. The remaining percentage is for Fashion, according to data from the Mexican Association of Direct Sales (AMVD).