Meg here! I hope you all had a gorgeous Christmas! Now I’m jumping into a serious economic issue. With the stores slashing prices, jobs being cut and entering a dire financial crisis, I ask you this…Are you experiencing “THE LIPSTICK EFFECT?”
This term is being bantered around in the media. What is it? Otherwise known as the” Leading Lipstick Indicator”: During times of economic uncertainty, women load up on affordable luxuries as a substitute for more expensive items like shoes and jewelry. It’s a term by Leonard Lauder, Chairman of Estee Lauder, who saw lipstick sales sky rocket after September 11th.
He didn’t just see sales rise, lipstick sales doubled! That’s a lot of pucker potion!
Why are we doing this? Are we suddenly feeling the compulsion to try every new shade? Well, maybe, but that’s not what the experts are saying. When the crunch of hard economic times stress us out we’re still craving some retail therapy. We just can’t do it via the $900 Jimmy Choo stiletto. There’s no better pick me up then feeling pretty and for $9 we can grab it in a shiny new lipstick without the guilt.
The Great Depression? Yeah, everything was depressed..Except our lips. That’s when the trend was first noticed. People weren’t able to buy ANYTHING, yet Lipstick Sales again rose. They rose, red, pink, nude, (you get the idea.)
The recessions of 1990 and 2001 were tough..Unless you worked in cosmetics, then the need for more workers to fill the supply of the surplus for our quest for beauty increased.
Guess where we’re at today?
In La-La Land we saw a huge house increase. I mean it was ridiculous. 4 years ago you could buy a cute 2 bedroom 2 bath house that ran around 1,000 square feet…For more then A million dollars! Not in Beverly Hills, you couldn’t touch a teardown for under 2 million. I mean in the OK area of Los Angeles. A house anywhere else in the country (SF and NY exempt) that would run you $200,000.
Anyone that had owned a house prior to the boom felt rich. The houses were being valued for twice the price and hey, having an extra 500 grand in the bank make people feel rich. so they borrowed against the properties. They bought cars, and clothes and went on trips. Meanwhile milking the equity out of these properties.
Then the bubble burst. What comes up must come down (even if it’s above Sunset Blvd.)
This is the town of the rich and famous…Yet, the “fancy” restaurants around here are pretty much empty at lunch. People are still going to the hot clubs, we’re just buying drinks, not bottle service. If I need something new I drive past the luxury stores and head to Loehmann’s.
If this is happening in the town of the “rich and famous” then what’s going on in the towns of “middle-class and normal?”
I personally get sent more makeup then a clown. I’m trying to make this site work, I’m not buying new clothes or jewelry but when I’m in CVS you can bet the farm I’m walking out with a lipstick!
Stocks are in the toilet, bonds are down the drain, jobs are scarce and property values! HA! No really, I have to sell my house I’m getting divorced so I say HA! (Instead of SOB!) But I’m going to be fine, it’s going to be fabulous. You see, I just picked up the most perfect shimmery gloss and I don’t look like I have a care in the world!
Ladies, please let me know what you think about the “LIPSTICK EFFECT” and if you’re apart of it?