Since experts say direct selling can never substitute retail merchandising, what long-term purpose does direct selling serve?
A. At the moment, we do not sell the same volumes as can be sold through retailing. But that does not mean we have not tinkered with the idea of retailing. When Tupperware began operations in the US, it was through the retail format. But it was not successful. There are were reasons for it. First, the nature of the product itself. Tupperware is a touch-feel product. Therefore women needed to see it for themselves and then perhaps a purchase could happen. The second is, when Tupperware sits alongside other plastic products in retail showroom, it competes with poor quality products on price. Moreover, the USP of Tupperware gets lost in the maze of those fancy looking plastics. By taking Tupperware away from this area and introducing it into the home party circuit, we created an exclusive market for ourselves. Here prospective consumers are allowed to feel the product. And we sell the product on the power of our demonstration. In fact, now in global markets such as the US, France and othe
