“The lipstick effect: Why people splurge on small luxury items during tough times”
When times are tough, it’s nice to treat yourself 🎁.
The lipstick effect refers to the phenomenon where people splurge on small luxury items, like lipsticks, during economic downturns instead of making larger purchases.
This behavior is thought to be driven by the desire to improve one’s mood and appearance without spending a lot of money.
The term “lipstick effect” was first coined by Leonard Lauder, the chairman of Estée Lauder, when he observed an increase in lipstick sales during the 2001 recession.
Here are some examples of the lipstick effect
1. During the Great Depression, many women continued to buy and wear lipstick to boost their mood and feel more attractive despite the economic hardships they were facing.
2. In 2008, during the global financial crisis, sales of high-end makeup and skincare products increased as people sought ways to feel good about themselves without spending a lot of money on luxury items.
3. In 2020, as the COVID-19 pandemic caused economic downturns around the world, many people turned to small indulgences like candles, scented oils, and skin care products to improve their mood and self-care routines.
