The Lipstick Index
Submitted by pat on Mon, 02/02/2009 - 17:08
The "lipstick index" was first used by Leonard Lauder, chairman of Estee Lauder, in 2001. During that recession, lipstick sales increased by 11%. During the Depression, cosmetic sales increased 25%. What's happening so far in this recession? Well, in the 12 weeks period ending January 26, lipstick sales are up 5.4% What's the theory behind the lipstick index? In hard times, consumers put off large purchases, but by buying a new lipstick, women can indulge a little and do something to make themselves feel better. Any thoughts on what may be the equivalent for men?
Interesting...
This is an interesting idea, I like the logic and it makes me want to invest in lipstic stocks! I used to work for a startup in Palo Alto called IMVU (www.imvu.com) that is sort of like an online chat room with 3d graphics and they specialize in microtransactions where customers can update their clothes and character attributes. I wonder if they are doing extra well now that we are in a bit of a recession? Their service definitely allows users to customize their "image" just as you do in real life for people Pat :)