The Lipstick Effect

Economists have long recognized that when lipstick sales go up, its a good sign the economy is on the skids. It even has the name --"The Lipstick Effect." While no one is debating the current state of our economy what is not known is just how good lipstick sales will be.

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.
                                                                                                                    Ms. Rancier's Mia Mariu

Some recent surveys in the UK indicate that women would rather cut back on food than their favorite cosmetics. For more on how the beauty care industry is doing in the recession, check out my post on BlogHer.