The index of the lipstick (lipstick index) has used several times along the history to refer to a change of economic cycle. It treats of a theory that indicates that, in difficult moments, the sales of cosmetics shoot . Although the logical carry us to think the contrary, that the shopping of goods no essential, even the more asequesibles, diminish and tend to the saving; the saying 'to the bad good time expensive' fulfils in the majority of the cases. Some experts define this behaviour like a form of escapismo when the income are scarce. It is used to say that the make-up empodera and improves the self-esteem. Natallia Bambiza, director and analyst of beauty of the signature of investigation of markets NPD Group, described the lipstick like a "affordable luxury". One product in which it is had to spend even when it renounces to luxuries as they can be a bag of design or a lovely jewel.
But, what is exactly the 'index of the lipstick'?
The creation of this index of the lipstick attributes to Leonard Lauder, one of the heirs multimillionaires of the fortune of Estée Lauder. The theory of Lauder was that the sales of lipstick and the health of the economy evolved proportionally of reverse form: to measure that the economy worsened, the sales of bars of lips grew. It does some 20 years, when the American economy was in the middle of a recession (just after the terrorist attacks of the 11S), produced this same fenomeno. Lauder Detected an increase of 11% in the sales of pencil of lips, as it informed then The Wall Street Journal, a totally unexpected stage.
We find other examples of the 'index of the lipstick' in the history: during the Great Depression or with the crisis of the 2008, when some of the marks of cosmetics bigger of the world notified an increase in his sales. And the same sucede in the current context, with the inflation by the clouds, the lipstick effect goes back to go in at stake and the lipstick converts once again in an emotional comfort.
Only there has been a moment in the last two years that has not been like this: the first months of the pandemia, with the closing of the physical point of sale and when the ecommerce still there was not eclosionado. Companies like L'Oréal, Coty, even Estée Lauder, declared that the make-up was the category that worse evolved in the first quarter of 2020, when the restrictions hardly finish to arrive to Europe. For putting an example, the sales of make-up of Estée Lauder sank 22%, almost the double that other categories like perfumes or hair.
It can the 'index of the lipstick' predict a recession? According to Modaes, L'Oréal (the French giant of the cosmetic) improved his income 20,9% in the first semester of this present year. In the case of Europe, increased 14,6% his sales in a marked period by the closing of all his establishments in Russia. "After two years of pandemia, the consumers confirm his wish of socializar and give a whim, what is promoting the growth of the market of the cosmetic", signalled the group in the same half.