Wednesday, November 12, 2008

Interesting economic indicator


A fascinating li'l article here by Claudine Zap entitled "The Lipstick Economy." Since I don't really wear lipstick (does chapstick count?! ; ), I was oblivious that this small piece of makeup wielded so much clout. But now I see, so read on and be informed...

"In this economy that's in the red, there may be one bright spot that comes in shades of pink, brown, and taupe: the lipstick index.

It's a financial indicator that's as true as that colorfast shade that stays on you, and doesn't get on your man. In bad times, lipstick sales soar while other sales sour. The term "Leading Lipstick Indicator" was coined by Leonard Lauder, chairman of makeup company Estée Lauder, after he noticed the trend during tough economic times. And what is indicated right now? All lips are pointing upwards.

After all, women don't need to think twice about plunking down eight bucks for a drugstore lipstick while passing on $800 Jimmy Choos.

History can be our guide here. As a Harvard professor explains: "The decade of the Great Depression, cosmetic sales increased 25 percent." After the downturn following Sept. 11, lipstick sales doubled.

Looks like we're on track for a similar lip-color craze with this latest economic funk. The New York Times notes that in the last few months, lipstick sales have shot up 40%, and even put out a list of favorites ranging in price from the budget-conscious $1.99 to the more pricey but still affordable $55. Preferred colors for this new economy? Red is out. Neutrals are in.
Maybe you can't put lipstick on a pig (FEED THE PIG came to mind! ; ) For those who have no clue what I'm talking about go to http://www.thirdformat.com/). But you sure can stock up on the stuff during rough financial times."

Hmmm...I bet there are a lot of other economic indicators out there like this we wouldn't normally think of. Greeting cards come to mind. People will always buy a card, but just won't include a gift when the economy is depressed. Can you come up with any others?

3 comments:

Richard said...

buzz cuts. people can't afford to get their hair cut professionally, and can't afford gel to keep their hair straight, so they cut it themselves with clippers.

Brandy said...

Romi,
Got your messages, I just haven't the time to respond back.
I plan on doing that tonight as well as reading your blog! :)
Just wanted to tell you so you know that I got them.

Brandy said...

Hmmm...that's very interesting about lipstick sales!
I try to cut corners any way I can, times are tough!