The Lipstick Effect
Overview The Lipstick Effect is a fascinating phenomenon observed during times of economic downturn, where consumers, particularly women, tend to purchase small luxury items like lipstick instead of more expensive goods. The underlying idea is that when faced with financial stress or limited disposable income, people still seek ways to indulge themselves—just on a smaller scale. This psychological response allows them to experience a sense of control, normalcy, and even empowerment without making large financial commitments. The term gained popularity during the early 2000s, but the pattern was particularly noticeable during the 2008 global financial crisis. While industries across the board experienced sharp declines, cosmetic companies such as Estée Lauder and L’Oréal reported surprising resilience in sales, especially in affordable makeup products. Leonard Lauder, chairman of Estée Lauder Companies, even…
