New Delhi: The ‘lipstick index’, a marker of economic slowdown, which was once applicable to the West, now seems to be real to India.
Lipstick Index is a term coined by Leonard Lauder, chairman of the board of Estee Lauder and used to describe increased sales of cosmetics during the early 2000s recession. Lauder made the claim that lipstick sales could be an economic indicator, in that purchases of cosmetics – lipstick in particular – tend to be inversely correlated to economic health. The speculation was that women substitute lipstick for more expensive purchases like dresses and shoes in times of economic distress. While it is said that several colour cosmetic brands registered similar trends in 2001 and 2008 slowdown, this time around, the lipstick index is reportedly seen in India, with some of the major cosmetic brands registering double-digit growth rate. The theory seems all the more convincing because sectors like automobiles, aviation and real estate are witnessing a slowdown.
While the New York Times calls it a ‘mood booster’ at times when people find bags too expensive, economists explain this with a theory that the consumption of inferior goods shoots up with fall in income and lipstick specifically come as a cheaper substitute to expensive indulgences for women.