CODE: LIPSTICK

The Lipstick Effect 

It's so important to understand what's happening in your environment whether it's socially, politically or economically. It can have a direct effect on your business either for the better or for the worst.

Tightening the purse strings means that consumers are less likely to make big purchases like a sofa or a new bed or a new car and perhaps holding out for another year or two till till our wallets ripen up. 

Therefore leading the way for smaller luxuries, que; The Lipsitick Effect. 

The lipstick effect is the theory that when facing an economic crisis consumers will be more willing to buy less costly luxury goods. [quote]

It's easier to spend £20 on a lipstick or some other beauty item opposed to £200 on a new mattress. We feel less stressed and pressured to not save £200 for a mattress making it far more easier to hand out £20 for a small luxury item.

As explained in The Guardian there has been an increase in sales on beauty products.

'Beauty product sales are up more than 7% on last year and womenswear is up 4.4%. Sales of lipstick rose 31% in the three months to the end of June against the same period last year'

When the recession first hit around 2008 i had this obsession of buying a new nail polish at least once a month. Barry M at the time was one of the fewer brands that were doing these bright poppy nail colours, they were fun, fashionable and most importantly inexpensive. Money was tight, we were all going out less, more and more house parties were popping up, so the weekend ravers could cut back on a night out in town. People were shopping less, recycling their wardrobes and there were even 'Clothe Swap Parties'.

Barry M Crackle effect nail polish

So buying a new nail colour was a nice mini luxury that in the end accumulated 40+ bottles. Spending £6 on a couple of bottles was certainly a treat when money was tight and even more so when you're a student. The justification was that it was far more cheaper than getting them done in a salon and psychologically it felt like we were taking care of ourselves, making us feel better regardless of it being a necessity. 

So If you are a Cosmetic brand i guess this could be a good time for you.

Read the full article here at The Guardian