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What is the lipstick effect?

Asked 1 hour ago

Answer

The lipstick effect is when consumers buy small luxury items, like cosmetics, during economic uncertainty instead of larger purchases. This behavior is seen as a way to boost mood when finances are tight.

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'Lipstick effect' shows consumers seeking small luxuries

Scripps Local · Just In
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Just In
  • The 'lipstick effect' refers to increased sales of small luxury items during economic downturns. 5s
  • Consumers in areas with high inflation, like San Diego, still seek affordable treats such as cosmetics. 16s
  • Consumer confidence has dropped over the past four years, leading to more small indulgent purchases. 1m 5s
  • Experts warn that while small purchases can boost morale, excessive impulse buying can be problematic. 1m 34s
  • Consumers are encouraged to seek non-shopping activities for enjoyment to avoid financial strain. 1m 43s
ShoppingEconomy

References

'Lipstick effect' shows consumers seeking small luxuries
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Scripps Local
3 hours ago
'Lipstick effect' shows consumers seeking small luxuries

The lipstick effect is a theory where sales for cosmetics rise when there's economic uncertainty, as people buy small treats instead of big purchases.

'Lipstick effect' shows consumers seeking small luxuries
Icon
Scripps Local
3 hours ago
'Lipstick effect' shows consumers seeking small luxuries

Buying small, affordable treats like lipstick is more common during periods of economic uncertainty, providing emotional comfort when larger purchases are out of reach.

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