Lipstick Effect
Some say hemlines and heels rise and fall with the state of the stock market. But for those who really want to know how bad things are there is only one item that counts: lipstick. When times are tough, consumers stop spending on big terms. But rather than lose the spending habit, consumers trade down to cheaper items. One economic analyst said sales figures from the world’s big cosmetic companies confirm the effect has returned, with consumers increasing their spending on cosmetics even while economising elsewhere.