Lipstick index
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The lipstick index is a term coined by Leonard Lauder, chairman of the board of Estee Lauder, used to describe increased sales of cosmetics during the Early 2000s recession[1]. 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.[2] The speculation was that women substitute more expensive purchases like dresses and shoes for lipstick in times of economic distress.
Lauder identified the Lipstick index as sales across the Estee Lauder family of brands.[3] Subsequent recessions, including the Late-2000s recession, provided controverting evidence to Lauder's claims, as sales have actually fallen with reduced economic activity. Conversely, lipstick sales have experienced growth during periods of increased economic activity. As a result, the lipstick index has been discredited as an economic indicator. The increased sales of cosmetics in 2001 has since been attributed to increased interest in celebrity-designed cosmetics brands.[4]
[edit] References
- ^ "Lip service", The Economist, January 23, 2009
- ^ Maureen Dowd, "Oedipal Loop de Loop", New York Times, December 2, 2001
- ^ Emily Nelson, "Rising Lipstick Sales May Mean Pouting Economy", The Wall Street Journal, November 26, 2001
- ^ Cheryl Lu-Lien Tan, "Lunchtime Snap: The Shaky Lipstick Index–Sales go Down, not Up, as Economy Falters" [1], The Wall Street Journal, October 17, 2008
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