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Rising Skincare Sales Post COVID in the Beauty Industry

Introduction to the The Lipstick Effect

Marc Jacobs once stated, “Cosmetics is the completing touch, the last extra.” In 2019, the worldwide magnificence industry was esteemed at $532 billion, with restorative items – comprehensive of eye, face, nail and related frill – representing $6 billion of deals in the U.S. However, the ascent of the worldwide skincare advertise, combined with the cultural and financial movements coming about because of COVID-19, could drastically change the eventual fate of the makeup business.

The lipstick effect is the theory that when facing an economic crisis consumers will be more willing to buy less costly luxury goods. Instead of buying expensive fur coats, for example, people will buy expensive lipstick. The underlying assumption is that consumers will buy luxury goods even if there is a crisis.

The “Lipstick Effect” On Consumer Beauty Spending During Economic Downturns

During each monetary downturn from 1973 to 2001, spikes in joblessness in the U.S. were corresponding with upticks in shopper makeup — with spending increments explicitly connected to lipstick items prompting magnificence big shot Estée Lauder authoring the saying “lipstick impact.” As the expression proposes, when buyers face monetary pressure, they look for fulfilment from little guilty pleasures. Looking great to feel better is the basis for buyers’ prioritisation of insignificant excellence item buys when confronting financial pain. During the Great Recession, a more extensive range of excellence items experienced spikes in deals, causing the lipstick impact to speak to a more extensive cluster of SKUs.

The Lipstick Effect Gets A Makeover During COVID-19

Tropika Club's Flamingo is the chief editor and curator for all newsfeeds, articles and guides for Tropika Club Magazine. Beside contributing content to the magazine, the Flamingo also helps to give our reward points to customers who have booked beauty, wellness and fitness services in the search directory.