The Lipstick Effect (aka Lipstick Indicator)

Lately, I've been wondering how the new economic climate will impact my Mia Mariu business.

I finally took the time to do a little research, and was surprised to learn that during a recession it is common for cosmetics sales to rise rather than fall.

Some have termed this the lipstick effect.

Why? The theory is that during a recession or difficult economic times, women will buy small items rather than big ticket items. As a woman, I have to say, this makes total sense. If you can't afford to buy that cute dress, getting a new lipstick, mascara or any new bronzer will make you feel better. It may not be the dress, but you still get to take home something new, that will make you feel wonderful.

Here's a definition I found...

lipstick effect n. During a recession, the tendency for consumers to purchase small, comforting items such as lipstick rather than large luxury items.

According to the Huffington Post, the term originated with a man named Leonard Lauder (with no other than Estee Lauder). Leonard allegedly observed a significant increase in lipstick sales after 9/11. During tough times cheap luxuries such as lipstick enjoy a boost in sales as consumers look to counteract the economic blues.

Apparently, during the 2001 recession, Avon saw makeup sales rise.

Interesting stuff - though I would still prefer to avoid a recession all together.
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