Lipstick Index

[bagatelle]

Never knew this before:

The lipstick index is a term coined by Leonard Lauder, chairman of the board of Estee Lauder, used to describe increased sales of cosmetics during the Early 2000s recession. Lauder made the claim that lipstick sales could be an economic indicator, in that purchases of cosmetics - lipstick in particular - tend to be inversely correlated to economic health. The speculation was that women substitute more expensive purchases like dresses and shoes for lipstick in times of economic distress.

Lauder identified the Lipstick index as sales across the Estee Lauder family of brands. Subsequent recessions, including the Late-2000s recession, provided controverting evidence to Lauder's claims, as sales have actually fallen with reduced economic activity. Conversely, lipstick sales have experienced growth during periods of increased economic activity. As a result, the lipstick index has been discredited as an economic indicator. The increased sales of cosmetics in 2001 has since been attributed to increased interest in celebrity-designed cosmetics brands.

In Finland there was 6% increase in sales of professional cosmetics last year. Growth in sales was 8% in 2009, they expect the same this year.

For my own part, I have to say I've bought quite a lot of cosmetic products this year, not for myself exactly, but cosmetics was the main theme of my Christmas presents this year. The fact that my sister sells them as a retailer may have some influence on it though.

And on a side note my 5 y/o daughter has become more interested in wearing lip gloss and polishing nails.

Have you noticed the increase?

[The_Jazz]

Well, I'm a guy and don't buy cosmetics. But the theory, according to your quote, has been disproven.

[bagatelle]

That's funny, because I was just reading this from today's local newspaper - should be reliable - and it is printed as a fact on their economy pages. I'm pretty sure they took it from the nationwide source of news.

[The_Jazz]

I think you need to read the second paragraph of what you posted, specifically:

As a result, the lipstick index has been discredited as an economic indicator.

As a longtime reader of local newspapers, I learned long ago that most of their national stories are pulled from the wire services and that when the local folks try to write stories about the national scope, they get details like this wrong.

If you want to link to the source of your quote, maybe there's something that somehow makes this back into a real theory, but for now, what you've given us basically says that lipstick sales are not indicative of anything in the greater economy.

[bagatelle]

Thanks, my bad, I read it poorly. The quote is from Wikipedia.

The newspaper still portrays their piece of news in a way, this index is considered true. Misleading. They don't quote any source, the news starts by 'It is said, that the consumption of lipstick for women increases while economy declines'...


Also, it says the sales was growing, but does not tell anything about prices possibly rising too. They mention increasing sales and growth of consumption, but give no figures at all to back up this claim.

[The_Jazz]

I think that your local newspaper is practicing lazy journalism. It seems pretty clear that the "fact" that they're stating at the outset is just plain old not true.

[bagatelle]

Maybe I should post them some feedback...

[cruisinmags]

Is it odd that I am applying lipstick while reading such a thread?

[bagatelle]

Originally Posted by cruisinmags

Is it odd that I am applying lipstick while reading such a thread?

1) It is considered fairly odd, if you are hetero male.

2) How is your current financial situation?