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View Full Version : Interesting article in Business Section
04-12-2006, 12:29 PM
I came across this in our Sunday's Business section:
Tupperware Brands:
"Through several purchases, Tupperware's business mix has recently gone from 90% housewares and 10% beauty to 65% housewares and 35% beauty."
"Sales of Tupperware's existing beauty business grew at an annualized 26% from 2002 through last year versus 2.1% for the rest of the offerings, says Doug Lane, a consumer products anaylist at Avondale Partners."
We knew from Kristi Hubbard that our growth was strong, but it is nice to see it in print!
I still haven't figured out how to get these articles in a post, so that is why I just typed in the important parts!smileys/smiley1.gif
Tupperware Brands:
"Through several purchases, Tupperware's business mix has recently gone from 90% housewares and 10% beauty to 65% housewares and 35% beauty."
"Sales of Tupperware's existing beauty business grew at an annualized 26% from 2002 through last year versus 2.1% for the rest of the offerings, says Doug Lane, a consumer products anaylist at Avondale Partners."
We knew from Kristi Hubbard that our growth was strong, but it is nice to see it in print!
I still haven't figured out how to get these articles in a post, so that is why I just typed in the important parts!smileys/smiley1.gif
beautigirl73
04-12-2006, 02:40 PM
That is so awecome to see, Vicki! I am still amazed everyday with what this business is doing!
Shawn
Shawn
Itzy
04-12-2006, 02:50 PM
Vicki, I think Tupperware is doing an advertising campaign on newspapers around the nation. Two weeks ago our local newspaperprinted awonderful article with pictures of people getting a Spa treatmentby a local Director. Here isthe article:
Tupperware gives itself a face-lift
--------------------
The plastic dishware maker is updating its direct-sales model, with a focus on beauty products
Mark Chediak
Sentinel Staff Writer
April 3, 2006
With the lights dimmed and New Age music playing in the background, Kemper Bushnell is leading a group of women though a series of breathing exercises.
"Breathe in through your nose and put your hand on your stomach to feel your breath," Bushnell says to the group gathered in a living room in a suburban east Orange County home.
While Bushnell's instructions are designed to relax, they're also part of her pitch.
An independent director of a sales team for BeautiControl, a line of beauty and skin-care products owned by Tupperware Brands, Bushnell is putting on a so-called "spa escape party" designed to sell items ranging from chilled eye pads with cucumber-ivy extracts to frozen margarita foot cream.
The party represents part of a multiyear makeover at Tupperware, the Orlando-based company that has been trying to shed an image left over from the 1950s of homemakers peddling milky-white bowls in tract homes.
Already, Tupperware has changed the look and feel of its parties, updated and expanded its traditional product line to include colorful bowls and stylish kitchen goods, expanded into foreign markets and pushed into the cosmetics business with the purchase of BeautiControl.
Furthering its transformation, Tupperware agreed to pay an estimated $566 million in August for the overseas direct-selling beauty business of Sara Lee Corp.
To underscore the point that Tupperware sells more than plastic bowls, the direct-selling firm changed its name from Tupperware Corp. to Tupperware Brands Corp. in December, when the deal with Sara Lee closed.
The Sara Lee purchase nearly doubled the company's sales force to almost 2 million. It also increased the importance of beauty sales, which are now expected to make up at least 35 percent of the company's overall revenue.
Tupperware chief executive Rick Goings said the recent moves were needed to reignite growth at the company.
"It's part of the strategy that we really crafted six or seven years ago," Goings said.
Putting a lid on losses
Sales of the company's containers and kitchenware in the U.S. have been on the decline for the past several years with the proliferation of cheaper disposable containers and kitchen goods.
For its fiscal year 2005, Tupperware's North America division generated $158.6 million in revenue, down 19 percent from $195 million in 2004.
To compensate for losses, Tupperware concentrated on overseas sales, notably in Europe, and got into the beauty business in 2000 with the acquisition of BeautiControl.
Overall, profit dipped in 2005 to $85.4 million from $86.9 million the year before.
Sales increased to $1.3 billion in 2005 from $1.2 billion in 2004, thanks to gains in Europe, Latin America and Asia.
And sales of the company's BeautiControl North America line have moved up at a steady pace since its purchase. Revenue for the product line was $146.7 million in 2005, up 24 percent from $118.2 million in 2004.
That's not surprising to BeautiControl consultants like Bushnell, who said she enjoys pitching skin-care products and personal care items in a relaxed, low-pressure atmosphere.
"You can earn a wonderful living," she said. "I've got the flexibility to work when I want to."
Bushnell said her spa escape parties typically pull in between $200 to $500. She estimates a full-time beauty consultant could generate about $5,000 a month in sales. That figure, however, does not include the money the consultant makes from recruiting women into the business.
As an incentive to grow its sales team, BeautiControl offers consultants a percentage of the sales of new recruits they've brought to the company.
Shirley Rivers, 56, one of Bushnell's recent recruits, said the spa escape party Bushnell put on at the east Orange County home impressed her.
"I'm in-between things and want to do something where I have more time to spend with my grandkids," Rivers said.
The beauty of makeup
What helps with the beauty business pitch is that it has the built-in advantage of selling a product consumers tend to use more often and need to replace, compared with durable plastic containers and kitchenware.
"There is more repeat business," said Doug Lane, a consumer product analyst with Avondale Partners, an investment banking firm in Nashville, Tenn.
"Tupperware has a lifetime guarantee for heaven's sake."
Lane said he thinks the beauty part of Tupperware will be the major driver of sales in the future.
Goings, a former Avon executive, also acknowledged that selling the company's beauty line presents less of a challenge.
"Rarely does a women wake up and say, 'You know what, I need to get some Tupperware today,' " he said. "But she gets up and she wants to put her makeup on . . . so it is a daily need for her."
This is particularly true in Latin America, where Goings estimates spending on Tupperware-type storage products totals less than $1 billion compared with more than $20 billion for beauty products.To take advantage of the opportunity, Tupperware snapped up Sara Lee's business, which has a strong presence in Latin America, particularly in Mexico.
"Direct selling in Latin America is the best and most fertile direct-selling geography in the world," Goings said.
The sales model works there, Goings said, because of limited earnings opportunities for women and an underdeveloped retail infrastructure.
According to Tupperware, 55 percent of all products in the beauty industry in Latin America are purchased via direct selling.
Goings also sees more potential in emerging markets in Asia, where Tupperware has expanded its reach.
"I suspect before I leave here that beauty will be our dominant category," Goings said.
"But it won't be because the other one is not growing; it's because beauty is growing faster."
Mark Chediak can be reached at mchediak@orlandosentinel.com or 407-420-5240.
Edited by: Itzy
Tupperware gives itself a face-lift
--------------------
The plastic dishware maker is updating its direct-sales model, with a focus on beauty products
Mark Chediak
Sentinel Staff Writer
April 3, 2006
With the lights dimmed and New Age music playing in the background, Kemper Bushnell is leading a group of women though a series of breathing exercises.
"Breathe in through your nose and put your hand on your stomach to feel your breath," Bushnell says to the group gathered in a living room in a suburban east Orange County home.
While Bushnell's instructions are designed to relax, they're also part of her pitch.
An independent director of a sales team for BeautiControl, a line of beauty and skin-care products owned by Tupperware Brands, Bushnell is putting on a so-called "spa escape party" designed to sell items ranging from chilled eye pads with cucumber-ivy extracts to frozen margarita foot cream.
The party represents part of a multiyear makeover at Tupperware, the Orlando-based company that has been trying to shed an image left over from the 1950s of homemakers peddling milky-white bowls in tract homes.
Already, Tupperware has changed the look and feel of its parties, updated and expanded its traditional product line to include colorful bowls and stylish kitchen goods, expanded into foreign markets and pushed into the cosmetics business with the purchase of BeautiControl.
Furthering its transformation, Tupperware agreed to pay an estimated $566 million in August for the overseas direct-selling beauty business of Sara Lee Corp.
To underscore the point that Tupperware sells more than plastic bowls, the direct-selling firm changed its name from Tupperware Corp. to Tupperware Brands Corp. in December, when the deal with Sara Lee closed.
The Sara Lee purchase nearly doubled the company's sales force to almost 2 million. It also increased the importance of beauty sales, which are now expected to make up at least 35 percent of the company's overall revenue.
Tupperware chief executive Rick Goings said the recent moves were needed to reignite growth at the company.
"It's part of the strategy that we really crafted six or seven years ago," Goings said.
Putting a lid on losses
Sales of the company's containers and kitchenware in the U.S. have been on the decline for the past several years with the proliferation of cheaper disposable containers and kitchen goods.
For its fiscal year 2005, Tupperware's North America division generated $158.6 million in revenue, down 19 percent from $195 million in 2004.
To compensate for losses, Tupperware concentrated on overseas sales, notably in Europe, and got into the beauty business in 2000 with the acquisition of BeautiControl.
Overall, profit dipped in 2005 to $85.4 million from $86.9 million the year before.
Sales increased to $1.3 billion in 2005 from $1.2 billion in 2004, thanks to gains in Europe, Latin America and Asia.
And sales of the company's BeautiControl North America line have moved up at a steady pace since its purchase. Revenue for the product line was $146.7 million in 2005, up 24 percent from $118.2 million in 2004.
That's not surprising to BeautiControl consultants like Bushnell, who said she enjoys pitching skin-care products and personal care items in a relaxed, low-pressure atmosphere.
"You can earn a wonderful living," she said. "I've got the flexibility to work when I want to."
Bushnell said her spa escape parties typically pull in between $200 to $500. She estimates a full-time beauty consultant could generate about $5,000 a month in sales. That figure, however, does not include the money the consultant makes from recruiting women into the business.
As an incentive to grow its sales team, BeautiControl offers consultants a percentage of the sales of new recruits they've brought to the company.
Shirley Rivers, 56, one of Bushnell's recent recruits, said the spa escape party Bushnell put on at the east Orange County home impressed her.
"I'm in-between things and want to do something where I have more time to spend with my grandkids," Rivers said.
The beauty of makeup
What helps with the beauty business pitch is that it has the built-in advantage of selling a product consumers tend to use more often and need to replace, compared with durable plastic containers and kitchenware.
"There is more repeat business," said Doug Lane, a consumer product analyst with Avondale Partners, an investment banking firm in Nashville, Tenn.
"Tupperware has a lifetime guarantee for heaven's sake."
Lane said he thinks the beauty part of Tupperware will be the major driver of sales in the future.
Goings, a former Avon executive, also acknowledged that selling the company's beauty line presents less of a challenge.
"Rarely does a women wake up and say, 'You know what, I need to get some Tupperware today,' " he said. "But she gets up and she wants to put her makeup on . . . so it is a daily need for her."
This is particularly true in Latin America, where Goings estimates spending on Tupperware-type storage products totals less than $1 billion compared with more than $20 billion for beauty products.To take advantage of the opportunity, Tupperware snapped up Sara Lee's business, which has a strong presence in Latin America, particularly in Mexico.
"Direct selling in Latin America is the best and most fertile direct-selling geography in the world," Goings said.
The sales model works there, Goings said, because of limited earnings opportunities for women and an underdeveloped retail infrastructure.
According to Tupperware, 55 percent of all products in the beauty industry in Latin America are purchased via direct selling.
Goings also sees more potential in emerging markets in Asia, where Tupperware has expanded its reach.
"I suspect before I leave here that beauty will be our dominant category," Goings said.
"But it won't be because the other one is not growing; it's because beauty is growing faster."
Mark Chediak can be reached at mchediak@orlandosentinel.com or 407-420-5240.
Edited by: Itzy
minispasbyjo
04-12-2006, 09:19 PM
That made it to our local paper here in Northern CA too.........I thought it was really cool to see it --it was almost a half page, very good for us!!!smileys/smiley4.gif Edited by: minispasbyjo
