Menu
Home
People
Places
Arts
History
Plants & Animals
Science
Life & Culture
Technology
Reference.org
Lipstick effect
open-in-new
<p>The lipstick effect is the hypothesis that when facing an <a href="/facts/Financial_crisis/lVXVuazP">economic crisis</a>, consumers will be more willing to buy less costly <a href="/facts/Luxury_goods/WGfwoF5a">luxury goods</a>. The concept was publicized in 2008 when <a href="/facts/Leonard_Lauder/Urloc0qn">Leonard Lauder</a> said that he noted his company's sales of lipstick rose after the <a href="/facts/September_11_attacks/PfWQcQNx">2001 terrorist attacks</a>. The lipstick index is an indicator derived from this hypothetical effect and first was used to describe increased sales of cosmetics during the <a href="/facts/Early_2000s_recession/4d5c0Cos">early 2000s recession</a>. Analysis and subsequent recessions have provided evidence controverting Lauder's claims, though related indices have been proposed for other cosmetics, including <a href="/facts/Nail_polish/g2IDM3lt">nail polish</a> and <a href="/facts/Mascara/JPLvEIHM">mascara</a>. </p>