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Old 2015-01-29, 15:29   Link #35609
SaintessHeart
NYAAAAHAAANNNNN~
 
 
Join Date: Nov 2007
Age: 29
R.I.P. 1950s: Today’s Tupperware Sells $1,000 Filters in China

Quote:
(Bloomberg) -- Tupperware Brands Corp. is famous in the U.S. for plastic storage containers, but it’s increasingly known in China for a much different product: $1,000 water filters.

The success of the Nano Water Filtration System, which hooks up to customers’ taps, contributed to a 20 percent jump in Tupperware’s Chinese sales last quarter. The company’s overall results, released Wednesday morning, topped analysts’ estimates and sent the shares on their biggest one-day rally in almost four years.

“Unbelievably, this $1,000 product is such a hot seller in our China business,” Chairman and Chief Executive Officer Rick Goings said on the company’s earnings call. “Almost a third of our business in China relates to water.”

Tupperware’s inroads in China underscore the opportunities for established U.S. companies looking for new ways to grow. They also reflect the interest among Chinese consumers in filtering their water and air. Tupperware’s filter touts NASA-developed technology and mineral-rich volcanic rock from the Gifu prefecture in Japan.

Tupperware introduced the product to China in 2011, said Kimberly Price, spokeswoman for the Orlando, Florida-based company. Sales have grown steadily, helped by roadshows throughout the country to demonstrate the product, she said.

Tupperware shares climbed 12 percent on Wednesday after the results were released, bringing its year-to-date gain to 5.8 percent. The stock rose an additional 1.2 percent to $67.45 as of 9:45 a.m. Thursday morning.
Suburban Parties

Tupperware, famous for 1950s parties where suburban homemakers demonstrated the virtues of food-storage containers, has evolved over the past six decades. In 2013, 91 percent of its sales came from outside its home market, according to its latest annual report. The company also sees growth in urban markets, particularly among time-starved millennials.

Tupperware’s global expansion has brought challenges, including the effect of a strong dollar. But it’s been outperforming some other direct-selling U.S. companies pushing overseas. While Avon Products Inc., which operates in similar markets, has posted two years of annual losses, Tupperware is profitable and projected to increase net income by about 20 percent in 2015, according to estimates compiled by Bloomberg.

Like Avon, Tupperware goes after customers in countries such as Brazil and Russia that have fewer retail choices. Its sales topped $200 million in Brazil last year following a 43 percent fourth-quarter increase in local currency. In China, the world’s most populous country, revenue exceeded $100 million for the first time, Tupperware said.

To court Asian consumers, the company offers products such as the RiceSmart rice dispenser and a Hello Kitty lunch set. In China, where apartments are small, the company relies on neighborhood outlets and cooking classes, Goings said. The number of outlets has climbed 15 percent from a year earlier to 4,700, he said.

“We saw continued growth in China,” he said on the conference call, “driven by a combination of a net addition in these outlets and also increased productivity.”
Well here is your China replacing US and the world No 1 economy. Consumerism at its finest.
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