'Lipstick effect' shows consumers seeking small luxuries
Scripps Local · Just In
Scripps Local
Just In
The "lipstick effect" — a theory that people buy small treats when they can't afford big purchases — could be happening right now as consumers face economic uncertainty, according to experts.
Breakdown
- 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