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Popular kitchenware brand Tupperware has aggressive plans to expand, including setting up 1,000 retail stores across the country over the next five years, as well as unlocking sales through the digital platform.
The company recently opened its 100th retail store in Chennai, with the Southern Zone accounting for 35 percent of sales, said Deepak Chhabra, managing director of Tupperware India.
“We plan to open about 130 stores this year. We have opened 100 stores and as we speak we should have opened two more so now there will be 102 stores. We intend to open 130 stores by the end of this year” he told PTI.
He explained that the stores would be a “franchise” model and sell the brand’s popular products.
“As an immediate expansion plan, we plan to open another 130 stores by December next year (2022), bringing the total number of stores in the country to over 250 …” he said.
“Over the next five years, we plan to have 1,000 stores across the country and do a big expansion in the south and west.”
When asked, he said that South and West are the majority of the company’s revenue drivers, each contributing 35 percent.
The company’s business strategy consisted of 80 percent direct sales, 12 percent retail stores, and eight percent online mode.
With the aggressive expansion plan, he said the current direct selling business would decrease from 80 percent to 65 percent, while the retail business would increase to 35 percent (from the existing 12 percent) and remaining from the internet (10 percent). “In two to three years, about 65 percent of business will come from direct selling, 35 percent from stores, and 10 percent from online business …” he said.
Regarding the impact of the Covid-19 outbreak, Chhabra said the business was having an impact like any other industry, but the company saw strong demand for its products due to the “work from home†culture.
“The pandemic was a silver lining for us because the consumption of these products was higher, mainly because everyone was at home and without the help of maids, people started to cook from home and every body was aware of health and safety consciously.” , he noticed.
As a brand, Tupperware has a large number of storage solutions and, in fact, the company’s growth in 2020 was 24 percent from 7 percent last year.
“Our growth is around 24 percent and in 2019 it was 7 percent. Because of the lockdown and restricted mobility, people prefer our products, but getting them was a challenge. So we have done many interventions like multi-channel branding now and recently opened our 100th store in Chennai in addition to online sales, “he said.
“We started selling online in late 2019 and have grown 6-7x over the last year from a small base,” he said.
Regarding the manufacturing facility, he said the company has a world-class facility in Dehradun, Uttarakhand, and the unit is shipping to over 35 countries in addition to serving the domestic market.
“The facility has an installed capacity that is much more than what we sell in the country. We export to many countries around the world to our own Tupperware companies there. We actually export to about 35 countries,” said the managing director .
Exports were constant and even increased over the past two years. The ‘Tupperware’ brand has developed well due to increased demand.
(Only the headline and image of this report may have been revised by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)
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