The Lipstick Effect: Will Consumers Still Splurge on Beauty in Tough Economic Times?
Posted by MAIR on Mar 11th 2025
The Dow, Nasdaq, and S&P 500 are all down, and the cost of living is soaring. When finances are tight, spending habits shift, but one surprising trend remains: people still indulge in small luxuries. This phenomenon, known as the Lipstick Effect, suggests that in uncertain times, consumers may cut back on big purchases but will still find comfort in affordable indulgences like beauty products.
What Is the Lipstick Effect?
Coined during the Great Depression, the Lipstick Effect describes how
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