“The lipstick effect is the theory that when facing economic crisis consumers will be more willing to buy less costly luxury goods. Instead of buying expensive fur coats and handbags, for example, people will buy lipstick. The underlying assumption is that consumers will buy small luxury goods even if there is a crisis.
When trust in the economy is dwindling, consumers will buy goods that have less impact on their available funds. It has been documented that after each major economic struggle the world has seen there is a follow on of the lipstick effect…
Great Depression, beauty was a big buy.
9\11, a spike in cosmetics sales.
GFC, sales boom in beauty.
So why the buy in beauty when you want to spoil yourself? Well quite simple… we look for affordable luxury. Lipstick\foundation is deemed an affordable feel good luxury buys. Instead of buying the luxury bag that can cost thousands you can get the same satisfaction from purchasing cosmetics at a fraction of the cost.

In Australia alone beauty is a 6.5 billion dollar industry and has findings to prove spikes in sales during an economic downturn? Globally the vanity/beauty industry booms in almost every financial crisis since the roaring ’20s. You could probably look back at the roaring ’20s as perhaps the beginning of dramatised makeup trends and also a genre of inspiration that some makeup artists still study to this day as groundbreaking for many reasons!

That brings us to COVID-19 you could argue this is maybe the “millennial’s” first crisis further proving that “the lipstick effect” has carried the beauty industry over multiple generations including our “millennial’s”. Beauty sales have spiked once again… salons were initially forced to close then retrictions were paired back to allow retail sales only and customers continued to buy retail makeup and skincare products! Our ladies of this day and age are spending just like the ladies before them! Beauty rises despite economic distress! With the final lifting of restrictions for salons soon to ease this will see beauty rise even further. When times get tough Aussies love to support Aussies and salons can expect to be super busy both with their services and retail over the coming period.

Michel Moore

LaGlam Minerals