‘Lipstick effect’: Britons turn to small luxuries in cost of living crisis
The shadow cast by the cost of living crisis has spurred a retreat into small luxuries with Britons cheering themselves up with mood boosters such as luxury lip balms and false nails as well as chocolate and coffee.
The lipstick index, coined by Estée Lauder’s Leonard Lauder, is the idea that sales of affordable luxuries rise in economic downturns. This spending behaviour has been true during previous downturns and the same picture is emerging again as consumers battle severe financial headwinds.
“We’re seeing customers treating themselves with smaller beauty luxuries to add a little extra joy to their everyday lives,” Jade Baker, the beauty buyer at the department store chain John Lewis, said.
In keeping with the index shoppers are coveting lipstick, with Clinique’s £21 Black Honey among the chain’s bestsellers after it became a viral hit on TikTok. Eyeliners and mascaras are also selling well with high street rival Boots reporting strong demand.
The Boots managing director, Seb James, says its products are a relatively inexpensive indulgence with customers using its Advantage loyalty card to collect points so they could treat themselves to new makeup, perfume or skincare.
“During the last recession, we experienced two things: firstly, the ‘lipstick effect’, which is the determination to continue purchasing small treats, and secondly, increased spending on own label and promotions,” he said. “These trends have returned. People might not get a new outfit but they may get a new lipstick.”
The market research firm Kantar Worldpanel said that in the 12 weeks to 18 September sales of lipstick were nearly 10% higher than last year. During the period 310,000 new shoppers had decided to buy lipstick, a near-20% rise that was the
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