KUALA LUMPUR, Aug 26 — Malaysia, a significant market for the Tupperware business, is essential to the company’s growth and ability to compete globally in the household products market, said Tupperware Brands Corporation president and chief executive officer Miguel Fernandez.
In an exclusive interview with Bernama, Fernandez said Malaysia is the fifth largest market for the brand based on net sales, after Brazil, Mexico, the United States (US) and China.
According to him, Tupperware provides a unique business opportunity for over 35,000 families in Malaysia who make their monthly living selling the iconic brand’s innovative products.
“Malaysia is one of our top five countries, (and) we count on the top five to support growth. So Malaysia is obviously a key market for us,” said Fernandez during Tupperware’s 2023 “World Tour,” a month-long effort in which Fernandez and Tupperware’s chief commercial officer Hector Lezama visited the company’s largest markets.
“We plan to keep producing and launching more interesting products to attract more users. With everything that we have launched and the great news that we have restructured our debt, I believe we are going to be a top brand for the next 75 years,” he told Bernama while in Kuala Lumpur.
Tupperware made worldwide news earlier this year due to a cash shortage. However, the maker of plastic containers and other kitchen products recently announced a successful debt restructuring as part of ongoing turnaround efforts.
The debt restructuring exercise is expected to provide the company with the increased financial flexibility to continue turnaround efforts and to reduce/reallocate cash interest and fees of approximately US$150 million, as well as extend the maturity of certain debt facilities, a press release said earlier this month.
“That news is behind us,” said Fernandez, when asked about the brand’s previous financial challenges. “We were able to restructure our debt and are continuing to do our business, including this World Tour. We are visiting the most important countries, where we are coming up with a lot of great news for our sales force. We are re-energising our sales force around the world,” he said.
On manufacturing plants, Fernandez said Tupperware outsources its production to a third-party facility in Malaysia. It provides the moulds and guidance on the best materials to use to ensure excellent functioning and quality as per its established standards.
“We produce an array of product categories. So, the trick in our industry is the highly specialised moulds. If more moulds are in the same factory, this will not help (with production). It is better to put a lot of moulds in many countries, so these countries can produce at around the same time to satisfy consumer demand.
He said some products are made in Malaysia while others are imported because of the mould factor. There are times when there is only one machine to produce a specific product to satisfy worldwide demand, he said.
Tupperware has manufacturing plants in Belgium, Brazil, South Korea, Mexico, China, India, Portugal, South Africa and the US. It produces geographically to meet local market needs.
It also launches limited-edition products to mark seasonal milestones and important holidays to meet consumer demand in different countries.
On its strategy to expand its customer base, Fernandez said the group continually invests in digital tools to appeal to the new generation. It also has two distinct strategies — product innovation and technology — to attract younger generation customers.
Instead of the traditional person-to-person method, Fernandez said the younger generation interacts using the cell phone. This has prompted the company to build tools to enable them to recruit, retail, and advertise the products via digital tools.
Technology is the best way to attract and retain people, Fernandez said.
On new products, Fernandez said the company has produced and marketed a portable blender which has proven to be very popular among the younger generation.
The portable blender is being sold in other countries and it has received a lot of positive feedback thus far. The blender was launched in Malaysia recently, he said. — Bernama
