“Lipstick Effect” Reaffirms Pouty Economic Times

23 12 2008

From the UK Telegraph

The theory assumes that, in a crisis or when consumer trust in the economy is low, people will buy goods that have less impact on their available funds. Women buy lipstick and men spend money on items like gadgets rather than new cars.  After the 9/11 attacks on the US sales of lipstick doubled.  Recent sales figures from some of the world’s big cosmetic companies – L’Oréal, Beiersdorf and Shiseido – bear out the theory. In the first half of the year L’Oréal sales were up 5.3 per cent.  The theory was first identified in the Great Depression. Between 1929 and 1933 industrial production in the US halved but sales of cosmetics rose.

Advertisements

Actions

Information

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




%d bloggers like this: