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The lipstick index that is the indicator of the sale of lipsticks has always undergone an increase during periods of economic crisis: in the last year, however, something has changed and the trend has reversed due to the Coronavirus.
What is the lipstick index
Lipstick has always been one of the most loved and purchased beauty products by women. Behind the lipstick there is a history of more than a hundred years: it was a cosmetic to be abhorred first and then a symbol of women’s rights. In time the sale of lipsticks has undergone ups and downs and, in particular, the sales indices of this cosmetic have had a very close correlation with the general trend of the economy.
To such an extent that, in the early 2000s, Leonard Lauder – the then CEO of the cosmetics brand Estee Lauder – coined the term ‘lipstick index‘.
Lauder in fact had found how, in periods of economic and financial crisis, the sale of lipsticks underwent a sensational surge respect not only to other beauty products but also to consumer goods in general. In short, if the sale of clothes, shoes, bags and more suffered a collapse, the sale of lipsticks on the contrary saw great increases.
The theory called lipstick effect is probably due to the fact that wearing lipsticks improves mood of women, who opt for the purchase of a consumer good that is inexpensive compared to those usually purchased.
Instead of buying more expensive luxury goods, women opt for in times of crisis an inexpensive good like lipstick to brighten up your days.
What is the lipstick index: variations in times of crisis
The theory elaborated by Lauder actually finds a real confirmation in history. The lipstick index has recorded, over time, a significant surge during the periods of economic crisis that the world has gone through. One of the first findings of this phenomenon can be identified in the period of Great Depression – in the 1920s – during which the cosmetics sector saw an increase in sales in spite of the economic crisis that affected all sectors of life.
The same phenomenon also occurred during the Second World War and in 2001 after the attack on the Twin Towers the sale of lipsticks increased by about 11%. The lipstick index also experienced a surge in 2008, with the economic crisis that began with the bankruptcy of Lehman Brothers.
What is the lipstick index: how it has changed with Covid
An increase in the lipstick index was therefore to be expected even in the years of the crisis caused by the pandemic Coronavirus. However, this did not happen. The lipstick index had a notable collapse, while the purchase of other cosmetic products such as nail polishes, mascaras and eye shadows increased.
Why? The reason obviously is due to the constant use of masks, which obviously cover the lips and prevent you from wearing lipstick. The increase in smart working has also influenced the sale of lipsticks and cosmetics in general: those who work from home often do not wear make-up or wear less make-up, thus decreasing the purchase of the aforementioned products.
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