Lipstick Effect

Lipstick Effect| Have You Experienced It?

A lot has been discussed in every economic down swing period (which seems to be more frequent in the last decade) about the lipstick effect both in the economic world as well beauty and cosmetic world.
But what is the so called “lipstick effect”?

According to Wikipedia the lipstick effect is the theory that when facing an economic crisis consumers will be more willing to buy less costly luxury goods. Instead of buying expensive fur coats, women will buy expensive lipstick.

In the time after the 9/11 attacks on the USA lipstick sales doubled.

History and research has shown that when the economy goes into a recession or a depression, the sale of lipstick increases. “The Lipstick Effect”… A term coined after the Great Depression, which saw sales of cosmetics rise in the four years from 1929 to 1933.

The underlying assumption is that consumers will buy luxury goods even if there is a crisis. When consumer trust in the economy is dwindling, consumers will buy goods that have less impact on their available funds. Obviously men will not be buying lipstick, but could be tempted by expensive beer or smaller, less costly gadgets.

I have also felt the “lipstick effect” from time to time but in a different context.
For me lipstick and chocolates are “feel good” items.
In plain and simple language these two are easily available mood enhancers……..
There are days when I am feeling a bit tired and grumpy and is simply no mood to go to my “12 hour”/” 6 days week” high pressure job.
But go I must for the job is financially very rewarding.
So what do I do?
I take out my favorite bright shade of lipstick that really hides all my negative moods and adds a sparkle to my appearance.
The moment I reach office I get loads of complements and this naturally gives a boost to my mood .I am back in full swing engrossed in my work and never notice how the 12 hours pass.
This is my lipstick effect.

But on a more serious and practical note let us have a closer look at this phenomenon.

In the US the number of people working in the cosmetics industry actually increased during the recessions of 1990 and 2001 as demand for make-up rose.

And during the long period of stagnation in Japan since 1997, spending on accessories has risen 10 per cent.

The theory assumes that, in a crisis or when consumer trust in the economy is low, people will buy goods that have less impact on their available funds. Women buy lipstick and men spend money on items like gadgets rather than new cars.

There has been another interesting development related to this feel good effect.

There has been an increase in non-invasive cosmetic surgeries in the recent economic downswing.
The most requested non-invasive procedures included Botox (96 percent); dermal fillers (93 percent), such as hyaluronic acid; and ablative skin resurfacing treatments (92 percent), such as dermabrasion and intense pulse laser (IPL) treatments.

This result is something I found very interesting.
It shows even in period of economic crisis and dwindling economy the inherent and basic psychological need of a person is to look good.

Only when he/she is confident with the inner feelings can that person cope with the pressure of outside world. And off course when the economy is in the downswing the struggle and pressure to cope with it and come out successful is more.

And hence the force of “lipstick effect” comes into full swing during such periods.

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