Four researchers decided to test the existence of a “lipstick effect” once proposed by the chairman of Estee Lauder, writes Ben Duronio.
- The proposed “Lipstick Effect” is that during economic downturns, demand for cosmetics actually increases, and evidence suggests that it is a real phenomenon.
- This might be because higher unemployment leads to fewer suitable mates around, and so women invest more in themselves, to attract better quality males.
- This might also explain why L’Oreal’s sales grew 5.3% in 2008 – the lowest point of the recession.
To read more including who conducted the test, and parts of the methodology used, click here.
Source: Business Insider