Small Luxuries Over More Extravagant Purchases
The “lipstick effect” is a theory that was proposed in 1998 by economist Juliet Schor. Her data suggested that women bought more lipstick during economic downturns, perhaps trading spending on more lavish luxury products for something more affordable.The idea gained traction in 2001 when Leonard Lauder, the chairman of Estée Lauder, reported that more customers were buying lipstick despite the post-9/11 recession. “When lipstick sales go up, people don’t want to buy dresses,” he told the Wall Street Journal.Pandemic mask wearing may have shifted lipstick sales, so it may not be the right indicator at this particular moment in time, but you might want to look for similar shifts in spending to small luxuries.