The Lipstick Effect: Brexit Edition

July 17, 2017 in Daily Bulletin

Brexit is beginning to drag down Britain’s economy wrote Sarah Butler. This can have strange consequences:

  • Consumer spending is showing signs of decline in Britain.
  • Yet certain categories are up. Sales of lipstick have grown 31% in the three months leading up to June.
  • In times of economic uncertainty spending on more essential items – like fridges – goes down while spending on spontaneous luxuries goes up.
  • The effect was first noticed when, after 9/11, sales of lipstick shot through the roof.
  • It’s thought that people try to be frugal in times of crisis but make small purchases of marginal luxuries to seek respite from the gloom.
  • People buy frozen food to cut down on food wastage. But they bake more cakes at home for the experience and satisfaction of making something.

Read more on The Guardian.