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 THE LIPSTICK INDEX
At a time when the economy is slowing down it offers an opportunity to validate some of the quirky economic theories like Lipstick Index.
Do lipstick sell well when the economic depression deepens? We answer “Yes”.
Why? People reach for affordable luxuries to feel better. The New York Times notes that in the last few months, lipstick sales have shot up 40% .
Let’s face it…It is more affordable to buy a $14. lipstick than a $50. shirt. And since women always want to look beautiful the lipstick is a much feasible answer for a quick fix!
Here is quick validation of other economic signs :
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| When the economy fails, we booze more. |
We say ‘No’ .
We drink all the time! The thing that changes is that we can not afford the luxury of going out to drink so instead we drink at home! We have more gatherings at home and less night life explorations. |
Skirt length theory:
When times are good, women’s skirts get shorter; when times are bad, hemlines fall. The idea behind this theoretical trend is that people are carefree during booms and cautious during busts. |
We answer ‘No’ - as the search volume for ‘long skirt’ , ’short skirt’ & ‘mini skirt’ bears no distinct seasonality pattern with recession . Its all about the fashion trend here! Nothing to do with the economy! |
So Let’s Recap:…..Nothing cures the hangover from a failing banks bailout
and rising unemployment rates like a shiny new lipstick.
