If purchasing that monogrammed Tote you have been eyeing seems like a distant dream at the moment, care to indulge in the new holographic lipstick? At least that’s what the experts think you will do. The Lipstick Index is an economic indicator that suggests an increase in sales of small luxuries like lipsticks and nail paints can indicate an oncoming recession or a period of diminished consumer confidence. Leonard Lauder, American billionaire and once the head honcho of a cosmetics conglomerate, coined the term when it was noted that historically, surges in lipsticksales occurred during difficult economic times. It may not be a precise measure of a looming slow down but it is not difficult to understand why women will forego buying expensive luxury goods in favour of less expensive products.
Finance expert Shweta Jain confirms that “the market scenario does not look very good.” She adds,”I have not tracked the Lipstick Index but from the reports I read, women are buying many cosmetics and premium ones at that. While people are holding off buying big-ticket items, cosmetic sales are going up.”
Consumer behaviour specialist Prarthana Chakraborty echoes the same sentiments. “Smaller items such as colour cosmetics can be an impulse purchase, especially with the advent of pay apps with rampant promotions, people are relaxed with buying small items and are staggering bigger purchases,” she observes.
So, does the Lipstick Index hold true for India too? Reena Chhabra, CEO of India’s largest cosmetic e-commerce portal explains her number game, “The cosmetics market is growing at 16 percent.”
She attributes this growth to digitally savvy youth. According to Reena, the traditional taboo on beauty products has also been eased. “People from the lower-income groups have been coming into the semi-skilled taskforce like BPOs and the need for grooming has increased. Compared to 10-15 years ago, when there were restrictions on girls applying make-up, now youth are into experimentation.”
Vishal Bhandari, founder of an organic cosmetics brand, is launching six new shades soon. “The demand for lipstick is always constant, be it off season or during the festive season,” he says, crediting the increase in sale to various factors like, “Newer marketing tactics, interest in organics, and social media presence fuel demand.”
Nail polish sales also go up and nail salons too have experienced a boom in recent years. Just like lipstick, it’s a relatively affordable pick-me-up.
The application of colour has a little more weight than just self enhancement. You can use it as a tool to evoke femininity or claim empowerment. In trying times, cosmetics can help restore a sense of normalcy. Women wanting to feel happier and confident also drive the use of lipstick and nailpaint. Rebellion, resilience, nostalgia or vibrancy, a little dab of colour on your face can have many effects, most of them positive.
