They used to say that you could measure the depth of an economic recession by the length of a lady's skirt; the deeper, the shorter... As economic theory goes, it's hardly scientific but it's a visually attractive concept. Now there would appear to be a new theory on the block. Estée Lauder noticed an increase in lipstick sales following 9/11. Compared to an 'IT' designer handbag that can cost as much as two months salary or more, lipstick is a snip at around 23 euros. Economists say that when the going gets tough, certain product categories withstand a downturn better than others. According to an article in the New York Times (thanks Marjorie for the link) lipstick falls into one of three consumer confidence purchase categories: traditional inferior goods when favourites are no longer an option, small indulgences providing an inexpensive treat or morale boosters designed to help you put aside your woes, albeit temporarily. Lets face it a lipstick makes you look and feel good even when your bank account is grey and flatlining. Whilst the article smacks of an interesting prelaunch press release, there is little significant data to back up the theory, with no real major shift in lipsticks sales this semester. However, maybe they're not looking in the right place? Qualitative not quantitative.... What if they researched investments banks? So if you see anyone on Wall Street in a mini skirt and bright lipstick, take your money and run. Think offshore, think gold!
