Looking good in tough times
The lipstick effect is wearing thin as GST challenges the way women spend on beauty.
THIS year’s April Fool’s turned out to be one of the most unfunny days ever, as GST finally took off and prices hiked across the country. Quite a few things are tax-exempt or specified zero-rated tax. But, beauty and its related products and services are not among them.
That means there are a lot of unhappy women out there who are grumbling like mad. But I’ve a sneaking suspicion that despite the grouses, they’re still gonna continue shopping and spending on skincare.
My friends in the beauty industry used to tell me that it’s recession-proof; that even in bad times, women still want to look good as it’s their one main source of comfort.
According to a report in The Huffington Post in 2012, women spend more on beauty products because “when economic misery abounds, beauty products seem like a good investment”.
It quoted the research paper, entitled Boosting Beauty In An Economic Decline: Mating, Spending And The Lipstick Effect, which stated that women worked harder on their looks during tough times in the hopes that they may gain greater financial security (through attracting a stable man).
Not sure about the sexist theory, but obviously women have done their share to keep the beauty industry robust even during a slowdown.
But times are a-changing and today, everyone is feeling the pinch, even those in the business of keeping women (and men) looking beautiful. The last couple of years have been particularly challenging, and whenever I meet up with those in retail, many of them report the same dismal news, “Sales are BAD!”
So while you can’t solely blame GST for the ongoing doom and gloom in the beauty industry, it’s not exactly helping either.
“There’s no way you can pretend that GST won’t hurt after a while. I’m always going to be comparing with the days of preGST and how much more I have to pay now.
“We have no choice but to accept it. Luckily for me, some of the brands I usually buy are not raising their prices (yet). But service-based stuff like facials and massages will definitely cost more,” my friend Jenn complained.
Just before April 1, being the
Oh woe! Women grumble about the higher cost of beauty products but that won’t stop them from buying. photo: BloomBerG
kiasu Malaysians that we are, many went on a major shopping spree to stock up on their “necessities”. Of course, it’s all relative whether you deem skincare products or vitamin supplements to be essential or not.
“I spent in advance and took from my savings to top up my existing facial, manicure and gym packages. Hey, the amount I save by not paying GST, even if it’s only for a few months, will pay for a few meals, OK!” Jenn exclaims.
Girlfriend, I hear you loud and clear!
At a glance, it seems to make sense to say that you only pay more tax when you shop more. So if you can afford to blow your budget on expensive luxury skincare, or a new handbag or pair of shoes every so often, then you should cough up the extra taxes as well.
But the fact is, the filthy rich don’t really care as their spending habits are not going to change, and the poverty-stricken have bigger issues on their hands anyway, much less worry about GST.
However, for the majority who hover in the middle-class layer, while a couple of ringgit more doesn’t seem significant, after you factor in all the little extras that you have to fork out, it all adds up.
Heck, it’s a triple whammy for me as I’ve got a full household to run; kids who need transport and tuition fees, not to mention a host of other expenses that inevitably crop up when you’ve got school-going children; and I haven’t even started on my own personal needs yet. Who’s got any leftover for luxury items?
Others like Samantha have resorted to buying online or asking friends who are travelling to buy on her behalf. “Not that I’m rich, but I don’t see any point in getting worked up since it (GST) was to be expected anyway,” she says.
Another far-sighted friend, Ginny, bought enough to last her a whole year, and stocked up on all her beauty essentials, ranging from cleaners, toners, moisturisers, serums to BB Crème.
“I’ve stopped buying the non-essential items, but having said that, I just bought a perfume I couldn’t resist because I really loved the scent! So I reckon, the stuff I buy must really be something I want and serve a purpose, or else I won’t be adding anything new to my beauty regimen.
“Or, I will simply buy the stuff I need when I’m travelling overseas where I can claim GST/ VAT,” she rationalises.
Well, that’s one way around it. But for the rest of us who don’t travel that often, we just have to get used to the new set of prices. Or maybe, marry a rich man ...
Missed the boat so will just have to use my cremes a little more sparingly, and hope my other half doesn’t notice the new wrinkles, says Patsy. Send your feedback to star2@thestar.com.my.