Founded shortly after World War 2, the Tupperware company’s patented soft-plastic, double-seal lid technology revolutionized kitchen storage containers, both in their ease of use and in their ability to keep contents fresh. To introduce its product to the public, the company also pioneered the use of party sales, in which salespeople could demonstrate the use of the product directly to small groups of customers in their homes, offices, or other small-show settings. This combination of technology and sales technique helped the company grow rapidly over its first few decades. Before long, Tupperware’s brand was so iconic that its products would later be displayed in the Smithsonian Museum and its name became synonymous with kitchen storage, much like other brands such as Q-tip and Kleenex did for cotton swabs and tissues, respectively.
However, that iconic status would later have drawbacks. By the time Tupperware’s patents expired in the 1980’s, many young adults believed that “Tupperware” and “kitchen storage containers” were actual synonyms and since they had grown up with it their whole lives and were well-aware of how it worked. So, when competitors like Glad and Rubbermaid began selling their own “tupperware” on store shelves, consumers found it much more convenient to buy it in stores while doing the rest of their shopping, rather than go through the hassle of attending a “Tupperware party.” The company quickly lost market share and struggled to regain ground. Despite a slight increase in sales during the pandemic lockdowns, the consumer storage giant Tupperware is now on the verge of bankruptcy.
Discussion Questions:
- Discuss the role of patents in an economy.
- Explain how consumer surplus, producer surplus, and deadweight loss change after a patent expires.
- What are some other products whose brand names have become synonymous with the general product?
Sources| NPR: https://www.npr.org/2023/06/01/1178876648/tupperware-business-sales-women-history; Photo by charlesdeluvio on Unsplash