What could lipstick possibly have to do with economic indicators? A lot, according to The Lipstick Effect. Huh? Does that refer to to matte vs. cream, or maybe, lip sheer over lip stain? Not quite.
Kisses for the Economy
The Lipstick Effect aka the Leading Lipstick Indicator says that consumers will indulge in less-expensive feel-good items in uncertain economic times. Historically, lipstick sales increase during economic or political turbulence. For example, lipstick sales doubled in the wake of the 9/11 attacks.
Personally, I’ve always been able to justify a new lipstick or lip gloss during my own (frequent) times of economic uncertainty.
Makeup mogul Leonard Lauder, former CEO and current board chairman of Estee Lauder, originally coined the “Leading Lipstick Indicator” because sales of his lipstick consistently increased during tough economic times.
Crunch Time
I may be slow when it comes to economics, but there’s no denying the fact that we’re experiencing major economic unrest. The Fed keeps slashing interest rates and pumping money into the economy, which will lead to inflation. Unemployment is up and people are spending less. Consumers are spending less and unemployment is up. Plus, credit is tight and house prices are falling.
What’s Your Plan?
Given the gloomy economic outlook, how will you tighten your financial belt? Do you plan on going spring clothes shopping? I plan on sticking with the essentials — and a maybe a new lipstick, or five.
Photo via Sonny Vandevelde
{ 13 comments }
Hallo und willkommen!!!
I hope you are ok and there is no great jet lag!! cheers!!
According to my financial planner aka The Hubster, we will be in this slump until the first of the 2009. I am a reformed conspicuous consumer, so I am always looking for deals. Great post on beautynomics.
Shop during sale, don’t pay no mind to ins and outs, and of course, 5 mid-range lipsticks kinda do the trick too.
I usually can justify a lipstick or lip gloss too, but lately I’ve been looking at the growing collection and realizing that a lipstick here and a lip gloss there all adds up! So I’m taking an extended break from buying.
Hey Jennine.
It is really cool to be able to follow your life through your blog!! Welcome to Europe!!
I hope you gonna have Fun!
And I am amazed by the Lipstick effect!! I will never think about it as an economic indicator !!!
Just continue what you are doing, it is cool to see you everyday
oh my… i know, my lipstick and gloss spending goes in waves… for a while they seemed to dissapeared, i panicked and now i have millions.
kezia is the writer of the beautiful tuesdays, she does such great job, because i’m so clueless when it comes to beauty!
I’m trying to slow down as well.
So far it’s not working out that well. But given our tax bill this year, I don’t think I’ll have much of a choice.
Luv
Poochie
hm never heard of this indicator but it’s pretty telling
something about lipstick/lipgloss makes me happy in a way, say a new eyeshadow does not. No matter how much makeup I have I somehow make room for a new lip product ever so often.
My answer to a tight budget is keeping an eye out for good sales.
My favorites are
online sales at http://www.activeendeavors.com
sample sales in the LA fashion district
shoes at amazon.com
boutique sales around the LA area
No matter what it’s hard to stop shopping so the best I can do is shop smart.
i hear you on the happy effect of lipstick/lipgloss. although whenever i bring a new one home, i realize it’s pretty much the same color as all the other ones i already have! good ‘smart shopping’ tips!
that’s weird, lisptcik sales increased after 9/11? Well, i guess everyone needed a feel-good thing.
Love the photo
I have cut back on all non-necessity items. But that could be because i bought a house not because of the economy. But i will say that this is the first year that i have even given a thought to the economy…aww to be a grown up.
That actually makes more sense then I thought it would. Very interesting, but I find myself doing that. (It’s eye shadow for me though.) When I’m poor (which is often) and I need a fashion pick me up the easiest thing to rationalize is make-up.
Hello! That’s a very interesting post… makes sense! I never wear lipstick though, but glosses, oh yeah baby. I would say that my pick-me-up beauty buy would be those little NYC Nail polishes. Right now, I’m looking for hot orange.
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