Lipstick Effect
The “Lipstick Effect” has kicked in, and along with economic data, it is pointing to an economic downturn and possible recession.
In beauty circles, the Lipstick Effect is claimed to be the category’s leading economic indicator.
Mainly, because in times of economic stress, women will indulge in discretionary purchases that provide an emotional uplift without denting their budget – that item happens to be lipstick and it alludes to recessionary conditions.
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