THE LIPSTICK INDEX
From the Great Depression to the aftermath of the Brexit vote, times of uncertainty are marked by a sharp uplift in lipstick sales, as we put on our bravest faces
Aterm coined by Leonard Lauder in 2001, the ‘lipstick effect’ refers to the financial phenomenon whereby sales of such small cosmetic indulgences go shooting up as the economy plummets into the red. It was therefore an intriguing reflection of post-Brexit-vote uncertainty that in the three months after Britain elected to leave the European Union, UK sales of lipstick outperformed an already flourishing cosmetic category by 30 per cent, echoing the 25 per cent surge seen during the Great Depression. The apparent paradox is easily explained; for not only is lipstick a cost-effective touch of luxury, it can also provide much-needed confidence when facing up to difficult times. As one World War II cosmetics ad declared: ‘No lipstick – ours or anyone else’s – will win the war. But it symbolises one of the reasons why we are fighting.’
Studies also suggest the possibility of a more hard-headed motivation, in which mating psychology and consumer behaviour collide. In 2012, an American academic research project entitled ‘Boosting Beauty in an Economic Decline: Mating, Spending, and the Lipstick Effect’, revealed, perhaps unsurprisingly, that the desire to attract a mate with resources increases during a recession. Beauty products that are perceived to enhance feminine allure are then more likely to be considered a good investment. It is no coincidence that both Estée Lauder and Revlon were founded during times of austerity.
‘Today there is such demand for lipstick that waiting lists have been created,’ says Annalise Fard, the director for beauty and home at Harrods. ‘We have definitely seen a trend towards lipstick sales, and we don’t anticipate it slowing down anytime soon.’ So if Leonard Lauder is to be believed, we might be in for a bumpy ride.