Ahead, everything you ever needed to know about the lipstick effect and how it might be impacting you.
In other words, when the economy is in decline, womens spending on makeup is shown to rise.
When inflation increases and the economy cools, people tighten their wallets and reduce their spending, she explains.
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One of these product categories is womens makeup.
A 2012 study reported that womens desire for a financially secure relationship partner grows during times of economic turmoil.
I cant afford to splurge on manicures like I used to, she says.
The lipstick effect is simply an economic indicator economists have studied over time.
When resources are scarce, researchers have documented two routes that consumers use to cope psychologically, says Kirk.
Humans have a fundamental need for control in our lives.
And one way is by controlling the things we purchase.
Remember the pandemic craze of people buying fish flip-flops and showing them off on social media?
Yeah, that was the lipstick effect, Kirk argues.
Shopping is a very predictable experience.
You have to remember cause and effect.
In general, being cognizant of how were gendering these different things is important.
Being aware that a scarcity mindset exists can influence how you behave, she adds.
It has even been shown to help reduce unneeded purchasing.
Its important to think about your why behind a buy.
Are you really wanting a new lipstick or is your desire to go shopping fulfilling another need?
How can I still have my needs met without spending money that maybe I dont want to spend?
Is It a Recession or Just Your Anxiety Talking?
As Kirk previously mentioned, an uptick in lipstick sales doesnt necessarily mean the economy is tanking.
Theres a lot happening in our world that can cause anxiety, affirms Kirk.
The economy is a cyclical cycle, meaning it will always be changing, she notes.
Does it mean saving up a little bit more?
2020;86:101527. doi:10.1016/j.socec.2020.101527
DiVisconte, J.
