Citizens' Issues
Tupperware India: When selling pressure starts burning network

Several consultants, managers or sales people of Tupperware are using online sites and retail shops for selling more products instead of direct selling or networking. The company, however, is alleged to have taken action only against few of them

Tupperware, a multinational company which sells storage, containment, and serving products for the kitchen and home through direct sales via an independent sales force is seeing an increase in complaints from its sales force. One major complaint against the company is that Tupperware India, its distributors and managers are encouraging sales through online (e-commerce) stores and discriminate against consultants. 

 

Some of the online stores that are  selling Tupperware products are ebay.co.in, ShopClues.comshopping.rediff.comJunglee.comPepperfry.com,SnapDeal.com,Tradus.com,
 HomeShop18.comShopping.Indiatimes.com and
 
ManiacStore.com.

 

According to guidelines from the Indian Direct Selling Association (IDSA) all its members like Tupperware and Amway are required to utilise a direct selling distribution (DSD) system to market their products. This also means, members of IDSA may not use online stores or e-commerce as it is not the DSD system.

 

"In online they (sellers) are selling the (Tupperware) items for a discount of more than 24%, the same discount given to consultants. It is completely against the IDSA Guidelines. Is this not the complete discrimination towards the consultants?" said one of the consultants.

 

Many of the consultants are running their own blogs to post fact sheets (about Tupperware products) and promote sales. "However, the company has not taken action against all of them. Baby Manager  (immediate manager, who is directly reporting to distributor-DB  not to manager or executive manager-EM ) asked me to become a manager. I refused to become a manager and then she and the DB started harassing me for not to promote the blog. After one week, DB sent an SMS terminating my code," alleged the consultant, who worked with Tupperware for over two years.

 

She also filed complaints of violation of code of conduct and code of ethics by Tupperware to IDSA. In an email reply, Chavi Hemanth, secretary general of IDSA, said, "We have already received this concern and our code administrator is seeing into this and I have already informed to the complainant. We will go as per our procedure of handling grievances of distributor."

 

According to the consultant, several managers and EMs are selling Tupperware products through retails shops by offering discounts of 30% to 40%. She even alleged that some of the managers are indulged in ‘stealing’ gifts applicable for consultants. She said, “If one of the consultants places an order for 2500, the manager will put the remaining 1000 for stealing the gift without the consultant’s knowledge. (The) Consultant will come to know only when she goes to collect the products against the order after one week. It happened with us two times. We fought for this and got it (the gifts) finally.” 

 

Our mails sent to officials of Tupperware in India and at its headquarter remain unanswered till writing this story. We would incorporate their response as and when we receive it.

 

What is Tupperware?

Tupperware is still sold mostly through a party plan, with rewards for hosts. A Tupperware party is run by a Tupperware consultant for a host who invites friends and neighbours into his or her home to see the product line. Tupperware hosts are rewarded with free products based on the level of sales made at their party. Parties also take place in workplaces, schools, and other community groups.

 

Shyam Sundar, a journalist and lawyer, who runs a blog http://corporatefraudswatch.blogspot.in , says, "Like the products of all these direct selling association members, the products of Tupperware are also exorbitantly priced and one has to become a member by paying certain amount. The Tupperware targets women, that too, upper middle class women, all over world. Generally, they are all housewives with 'disposable' income. They are induced with the pep talk of easy and quick money and good business opportunity sitting at home."

 

Tupperware products

The company is best known for its plastic bowls and storage containers, however in recent years has branched out into stainless steel cookware, fine cutlery, chef's knives and other kitchen gadgets. After experiencing a slump in sales and public image in the mid-1990s, the company created several new product lines to attract a younger market.

 

In many countries, Tupperware products come with a lifetime guarantee. In India, there are some restrictions on the lifetime guarantee clause. In the UK and Ireland the guarantee is for 10 years.

 

Carrot calling

Tupperware pioneered the direct marketing strategy made famous by the Tupperware party developed by Brownie Wise, a former sales representative of Stanley Home Products. A technique called 'carrot calling' helped promote the parties: representatives would travel door to door in a neighbourhood and ask housewives to 'run an experiment' in which carrots would be placed in a Tupperware container and compared with 'anything that you would ordinarily leave it in'; it would often result in the scheduling of a Tupperware party.

 

Issues in UK and Ireland

During 2003, Tupperware closed down its operations in the UK and Ireland, citing customer dissatisfaction with their direct sales model. There has been limited importer-distribution since then. The company announced a formal re-launch in the UK in mid-2011 and recruited UK staff, but in December the re-launch was cancelled

 

User

COMMENTS

VIJAYA VARMA P R

3 years ago

Tupperware is nothing but yet another Amway.

CVC recommends action against Suresh Kalmadi in the CWG scam

The Central Vigilance Commission has recommended action against Suresh Kalmadi, the former chairman of the CWG Organising Committee for ‘suppression of facts’ in a case of alleged corruption and nepotism

The Central Vigilance Commission (CVC) has recommended action against Suresh Kalmadi, the former chairman of the Commonwealth Games (CWG) Organising Committee for 'suppression of facts' in a case of alleged corruption and nepotism.

 

The CVC has conducted a direct inquiry on the basis of complaints of corruption and nepotism in the CWG Organising Committee. The probe report was referred to the Central Bureau of Investigation (CBI) for detailed investigation.

 

In response to an RTI query, the CVC said, “The CBI report (was) received and after examination, the Commission decided to close the matter. However, the Chief Vigilance Officer (CVO) is advised to take action as deemed fit in the matter of suppression of facts by Kalmadi and furnish an action taken report to the Commission.” 

 

The action taken report from the CVO, which acts as a distant arm of the Commission, was awaited, the reply said.

 

The CVC has also recommended registration of a disproportionate assets case against one of Kalmadi’s aides RK Sacheti, who worked as joint director-general in the Games organising body.

 

The Commission has received a complaint of alleged irregularity in appointments in the OC without proper education or professional qualification. The complaint also alleged that Sacheti was a 'backdoor entry'.

 

The CVC has called for a factual report from the CVO of the Ministry of Youth Affairs. The Commission expressed dissatisfaction over the CVO report and noticed “that a few CBI officers” were also alleged to be involved in the case.

 

“The matter was handed over to the CBI to register a case of disproportionate assets against RK Sacheti,” the anti-corruption watchdog said, adding that a report in this regard was awaited from the CBI.

 

The Organising Committee was mired in allegations of corruption in execution of projects related to the mega sporting extravaganza conducted by it between 3-14 October 2010 in Delhi.

User

Pharma company earnings: Slowdown in the domestic formulation; exports solid

Except for Cipla and Glaxo which are impacted more by the slowdown in the domestic market, analysts expect an improvement in sales and EBITDA quarter-on-quarter for other pharma companies in the industry, says Nomura in its research note

The growth in the India pharmaceutical market is adversely impacted by trade

destocking. Though Dr Reddy’s has benefitted from a lower base in the previous quarter (the increase in sales towards the end of Q1FY14 due to the resolution of agitation by chemists in Maharashtra was accounted for fully in Q1FY14 numbers), the ongoing tussle between the trade and pharmaceutical companies regarding trade margins is likely to impact the growth adversely, according to Nomura Equity Research in its note on the pharmaceutical industry performance. Analysts accordingly factor in -3% growth in the industry. There is also a drop in prices as per the new pricing policy.

 

The key characteristics of the quarterly performance of the pharmaceutical industry are: a) a slowdown in the domestic formulation business due to the implementation of the new pricing policy and tussle with the trade on margins; b) key high value launches in the quarter, particularly by Dr Reddy’s and Sun Pharma; and c) rupee depreciation against key export currencies, points out the Nomura research note.

 

Except for Cipla and Glaxo which are impacted more by the slowdown in the domestic market, Nomura analysts expect an improvement in sales and EBITDA quarter-on-quarter for other pharma companies.

 

Nomura analysts expect the industry to record a consolidated revenue growth of 14.4% and EBITDA growth of 15.5% in 2QFY14F.

 

In its overall analysis of all companies in the sector, the research note says that medium-term growth drivers that include the US and India opportunities are intact for the sector. Further, rupee depreciation presents additional tailwind, concludes Nomura.

 

The Nomura research note estimates for the sector are given in the table below:
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)