The lipstick effect

The ‘Lipstick Effect’ – a term describing how hard times make us buy more make-up and beauty products – is in effect this year according to experts. Image: Areck Socha via Pixaby

Are you buying more lipstick? Here’s why…

Here’s everything you need to know about the so-called Lipstick Effect which is in full swing again this year.

The lipstick effect

The ‘Lipstick Effect’ – a term describing how hard times make us buy more make-up and beauty products – is in effect this year according to experts. Image: Areck Socha via Pixaby

Have you heard about the “Lipstick Effect” or the Lipstick Index”?. Well, it’s a strange economic indicator that shows that people buy more lipstick during hard times, and it’s happening in South Africa.

It’s been almost a decade since the Lipstick Index was first introduced. It was first coined by beauty giant Estee Lauder chairman Leonard Lauder during the 2001 global recession.

He noticed that lipstick sales rose toward the end of that year, indicating that women tend to turn to beauty products when bigger luxuries are no longer affordable.

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According to a report by Mint, the phenomenon is happening again and this time, it’s brought on by COVID-19. No, it’s not because we have been wearing masks for two years and lately we have a reason to show off our smiles again.

The pandemic devastated the global economy and feminine consumers are flocking to the one luxury they can still afford: make-up. The publication says the increased demand for beauty products is not just confined to lipstick, but also included foundation, perfume and skin-care.

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SOUTH AFRICANS BEATING THEIR FACES AND INFLATION

South Africa’s beauty industry has been booming since 2018 and continues to do so despite the economic downturn since 2020.

According to Statista, the sales value of the beauty and personal care market in South Africa amounted to an estimated R63 billion in 2018. This value is expected to double in the next two years.

South African economist Dr Peter Baur told The South African that indicators like the Lipstick Effect are brought on by economic uncertainty.

“If the consumer sees a crisis looming, they may purchase now, to avoid the inability to purchase when the crisis eventually happens. This would most likely happen with luxury items, and middle-income households.

“It’s the ‘Purchase now, before its not going to be affordable in the future’ attitude that kicks in.”

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“This would most likely justify how luxury items such as lipstick, may increase before a crisis. During the crisis, the purchase of these items by middle income consumers will decrease, but decisions to purchase luxury items in high income households will remain unaffected.”

According to Mint, sales have grown in the beauty industry despite overall declining consumer confidence.

The price of beauty products in the United States (US) did not rise at the same pace as overall consumer inflation. While the average price of US premium beauty products rose just 2% between January to August 2022, the inflation rate for food was 10.9 % in about the same period.

We spent over 18 months working from home and consuming shows like Euphoria which idealise glowing skin, glittery make-up and perfectly adorned lips. Its no wonder people couldn’t wait to stock their online shopping carts with glam.